Is This The Right Time To Get Into Multifamily?
By Gino Barbaro
The number one question that I get from either Jake and Gino students or potential students, or anyone learning or wanting to get into the multifamily space, Is this the right time to get into multifamily?
Now I need to ask you a question. Is it right for you? Is now the right time ready for you?
I knew when I got in back in 2013, I was ready. Was that the right time back then? We look back and we go, “Wow, all the deals are great. I loved it back then.” You could have found higher cap rates, better cash on cash returns and that’s true, but the economy was terrible. GDP was 1.5%, rents back then were really in the toilet. We were charging $350 for one-bedroom apartments. Those same apartments today have risen to over $600. There was no consumer sentiment. The economy was terrible and there was not that much money in the market in the economy for you to raise to do syndications back then.
So although the timing was great, if you’re a contrarian, the vast majority of people are sitting on the sidelines because there was a lot of risk. There’s a lot of uncertainty. Now, over the past four or five years, what has been transpiring? The market has elevated, a ton more people have gotten into multifamily, money and investors are flooding to the market, and that has compressed cap rates and elevated pricing. Is it a good time now?
And like I already mentioned, it depends. Are you ready? Multifamily is a long-term play. It’s not as if you buy a deal today, and you walk away rich tomorrow. This is not a get rich quick scheme. It took Jake and I 18 months to find our first deal. That’s why if you’re ready for Multifamily, you need to start today because what do you need to do? You need to start with relationships. You need to start raising capital, talking to investors, educating yourself. Our mantra is Education*Action= Results. It’s going to take you a few months to select a market, meet brokers, learn how to properly underwrite a deal, and begin to go on property tours.
It takes years to hone-in on this skill. So if you want to start investing today, commit to multifamily and decide! In the Jake and Gino community, we have students that are partnering together. They’ve created relationships, they’ve gone to networking events, they’ve come to our events, and they are getting utilizing the mentorship program to dramatically shorten their learning curve.
It all takes a process and it’s all about the proprietary framework, the Buy Right, the Manage Right, and the Finance right? So if you think you’re ready for Multifamily, then learn how to implement the framework. You need to start taking control of your education. Once again, Education*Action= Results.
Let’s go out there and MIH!!