1. Market
It's often said that location is the most important consideration when purchasing real estate. An understanding of a given market and submarket's economic potential is paramount when assessing the future value of a multifamily property. At Apogee Capital, we look for properties in strong Texas and Oklahoma submarkets that we are familiar with and believe will provide future job and population growth. This provides a tailwind to our business plan as we work to increase rent and occupancy.
2. Value Add Opportunity
The presence of a value add opportunity on a property is crucial to providing the high returns we look to provide to our investors. Some people mistakenly believe that the only way to add value to a property is through renovation. While this is the most common strategy, there are many other ways one can add value to a property such as additional income opportunities, lowering expenses and raising rents through professional management and marketing. In today's market, it's important to consider all these methods but also to recognize that some properties simply do not have any significant value add opportunities remaining. These properties could be a great choice for a long term buy and hold investor who doesn't want to be bothered with the execution of an involved business plan, but would be outside our acquisition criteria at Apogee Capital.
3. Presence of Trusted Property Manager
At Apogee Capital, we see our property manager as one of our trusted partners on a multifamily deal. They are the ones who will handle the day to day tasks onsite and come to know the property most intimately. It's important that the individual(s) charged with this tasks be trustworthy and have the competency to run a multi-million dollar business. During our LOI and contract phases of acquisition, our property manager works with us on reviewing the business plan, performing due diligence and evaluation the property's potential as a whole in order to provide their buy in on execution of our business plan.
There are many important considerations when evaluating a multifamily deal and we make it our mission to careful vet each of these items. If you would like to learn more about passively investing in multifamily, please set up a meeting with us through our Calendly link and subscribe to our weekly blog here.
