Investing in a multifamily asset requires making many important financial decisions, understanding the complexity of how properties operate and also a considerable down payment. A generalist real estate agent may not be able to understand some of the nuanced metrics required to underwrite and forecast multifamily assets. If you’re going to take your investment career to the next level it may require selecting a broker that specializes in the multifamily product type for many reasons. For instance a $100 per month oversight equates to $1,200 per year and at a 6 cap could be a mistake that costs $20,000 in regards to your purchase price. Oftentimes these mistakes aren’t merely $100 but $100 times the number of units you’re purchasing so ten units and you just made a $200,000 mistake because you made a poor business decision when selecting the agent to represent you.
It helps to have an expert in your corner when undertaking such a large investment. Our team of Multifamily Investment Advisors are Chicago area multifamily experts that can guide you through this process, and may be able to share multifamily investment opportunities provide before they hit the general market.
Here are some minimum standards to consider when choosing a multifamily investment advisor.
- Look for a full-time agent – one who has experience completing multifamily transactions.
- A specialist versus a generalist.
- Are they familiar with the area in which you are interested?.
- Whether the broker trying to do it all alone or with a skeleton crew or do they have team based approach to help out with the lifting.
- Ask about their credentials and education: A good agent will continually strive to improve and gain knowledge of the latest real estate trends and hold the highest designations in their respective fields of expertise.
- Does the broker return your calls promptly? Time is money when investing.
- Choose an agent who listens attentively to your needs and concerns. Pick an agent, with whom you feel comfortable.