multi-family investing Archives - Real Estate Investing in Florida

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Who is this man and why is he smiling?

This man is Bijan Gorji, a real estate investor based in Sarasota, FL. Bijan is a special kind of investor though. Bijan invests solely in one asset class–one often overlooked by other real estate investors–residential condos.

Bijan believes that residential condos as an investment asset class have been an unfairly neglected market for too long. Where others see problems, Bijan sees potential… and it is paying off well for him. Since moving to Sarasota from California in 2012, Bijan and his wife have acquired a portfolio of over 35 residential condos with plans to continue investing in more residential condos. This episode, Bijan will discuss why he settled on residential condos as his chosen asset class and why it should appeal to investors from a financial standpoint along with providing a brief overview of Sarasota’s real estate investment market.

Pros of Investing in Residential Condos
- Easy property-management compared with single-family
  - Low upkeep costs
  - Ability to self manage properties
- Tenant profile allows fluid leasing
  - 1-2 bedroom units to working professionals or grad students; no families
  - Tenant turnaround quicker
- Buy-and-hold investment w/ monthly cashflow
- Hands-on investing allows oversight over all facets of investment
Investing Tips
- Check HOA regulations for condo before investing
- Find properties within driving distance if self-managing
- Finding tenants is biggest issue with residential condos: list on Craigslist, Zillow, Hotpads, etc.
Sarasota Market
- Huge amounts of construction (Multi-family and Single-family)
- Rents steadily increasing across all sub-markets
Inspiration
- Residential condos offered stable investment asset class
- Rich Dad, Poor Dad – Robert Kiyosaki

If you think you have an investment deal or if you have more questions about how to make money investing in residential condos, contact Bijan directly by email at bgorji@gorjillc.com

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Investing in multi-family property has its definite upsides. Investors who have considered multi-family investing know that it is an intimidating process: the stakes are much higher. Our guest this week has made calculated investments in multi-family properties…and it’s paid off big.

Ken McElroy may be the expert on investing in multi-family property. As founding partner of MC Companies, Ken oversees day-to-day operations of a nearly 10,000-unit portfolio of multi-family properties. With over 20 years experience in the field, Ken covers the key tips on investing in multi-family property.

What to Know About Multi-Family
1. Bigger is better
  1. Higher return rate than single-family
  2. Easier to finance
  3. Enables support staffing
  4. Does not require as many deals as single-family
2. Requires long-term investing
  1. Unlike “flipping” single-family properties
3. Familiar market landscape
  1. Single-family investors will recognize the similar processes in terms of due-diligence, lending and raising capital
4. Multi-family debt market options
  1. Ken advises agency debt options for financing such as FANNIE MAE
    1. Tedious underwriting, but offers favorable rates and pricing
    2. Non-recourse
    3. Supplemental pieces available (not forced to sell existing properties before purchasing new ones)
    4. Not taxable
Advice to Investors
1. Due-diligence is key
  1. Track upcoming cities and neighborhoods
  2. Follow market trends and economic trends
  3. Tailor search for specific markets (e.g. retirees, single-family homeowners, renters)
2. Real estate is cyclical
  1. Look to where the market is heading not where it is at present
3. Good property management is a must for multi-family
  1. Use local, knowledgeable, responsive PM firms
4. Finding deals
  1. Look for properties that are mismanaged
    1. Mismanaged properties may be holding unrealized “value-add potential”
  2. Stay focused on specific areas
    1. Do not expand to quickly or invest in remote locations
  3. National and local brokerage firms, in-house acquisition teams good resources for finding deals

More about Ken:

Ken is the author of The ABCs of Real Estate Investing as well as several other books covering all aspects of investing in multi-family property and property management.

He has also partnered with Robert Kiyosaki, author of Rich Dad Poor Dad and serves as an adviser for Rich Dad

To find out more about Ken or MC Companies, visit their website – www.mccompanies.com

To find out more about Ken’s books or other informational resources he offers check out his website – www.kenmcelroy.com