Crown Bay & Investing in Multifamily Property Today
We are very passionate about Multifamily. I have been involved in real estate since 1995 in various facets of the industry. I have been everything from an owner operator landlord to running multiple development companies, building houses and many rehabs, and buying and selling retail property. Nothing gives me the same excitement and satisfaction as buying and adding value to larger Multifamily Properties. That is from a personal feeling and of course a business perspective. And a “business” is what you are buying. Unlike some other types of real estate, bricks and mortar in multifamily,are secondary. It is all about buying a sound business, which you do your due diligence on, just like buying any other business. Fully examining the income and expenses (running costs) of the business with the accounts the property is currently running at, and then doing your own pro forma underwriting trying to identify areas where you can implement expense reductions and increase income, not by just simply raising rents, but even more importantly by cutting down on turnover, vacancy, collection losses and low or no concessions. Being able to identify and implement these strategies successfully, can add a very substantial amount not only to the bottom line, but to the overall value of the property. The bricks and mortar are just the materials to supply your product, which is of course, living spaces for multiple people to live in and pay you! Of course, it goes without saying, that there is much knowledge needed and many many nuances to understanding and being able to choose the right properties that will become successful investments. Don’t try this at home! as they say… unless you have taken the time to acquire and be armed with the necessary knowledge to make an educated decision.
Crown Bay Group has an extensive national network of Brokers offering us continuous deal flow, and we are constantly evaluating properties on a daily basis. We also spend a lot of time doing demographic research, looking into areas that have the right fundamentals to be a worthy investment place. This includes following job growth statistics to following the many new emerging industries in certain states that will attract more jobs and create significant population growth. These are called Emerging Markets. We have specific criteria that we follow to filter the many properties we see, to be able to narrow it down to the ones that suit our model, and risk tolerance best. You can read more about our investment criteria under the investments tab at the top of the website.
Crown Bay Group LLC