Hard Won Insights and a Single-Minded Focus on Multifamily Real Estate Investing
This week, I was sitting in a conference room in Fort Lauderdale, surrounded by prominent multifamily investors. We were having a closed-door, off-the-record conversation about all things multifamily. I was in heaven. I got to ask questions and hear insights from experienced multifamily investors who have been through cycles, grown platforms, and experienced failure. I feel fortunate that I found my career passion – building a platform for investing in housing. It consumes most of my headspace and is intertwined in many aspects of my life; I write here, I tweet constantly, and I...
Reflecting on the Sale of a Winner
When I look back at my time at Atlas over the past 11 years, the mistakes we’ve made have primarily been selling multifamily assets too soon. Selling class B assets in Tampa or Salt Lake in 2016/17, for example. These mistakes inspired me to put a note on top of the deal plaque which says “never sell winners”. The more refined quote I remind myself of is to “hold winners as long as possible and sell losers as quickly as possible.” I look at it every day. A few weeks ago, we sold a winner. One of the first deals we acquired when I joined Atlas in 2011 was a property in Naples, FL. The...
Multifamily Investors: Ignore the Shiny New Objects and Focus on what Matters Most
I’ve been on vacation the past few days, largely ignoring the deluge of headlines and incessant barrage of market news (what a week to be away!). It’s tough at first because tracking the latest news feels a bit like sport, but over a few days I’ve begun to realize that the news is largely irrelevant and often detracts from my long-term goals. While keeping your pulse on the general market is important, getting caught up in the “shiny new objects” as Peter Linneman calls them, is generally a waste. The daily movements of interest rates, when inflation recedes, speculation on Fed actions,...
When it’s right to Sell Real Estate…Almost Never
I used to be a religious reader of the Howard Marks memos, but at some point they started to get a bit repetitive…“move forward, but with caution...” However, his most recent, Selling Out, really resonated with me. I’ve always believed real estate is best held long-term (although easier said than done) as long as you structure deals in a fashion that enables you to do so, the asset/submarket has long-term upside potential, and there aren’t better opportunities to re-invest proceeds. At Atlas, our biggest investing mistakes came by selling multifamily assets too early. We sold three...
What I Learned in 10 Years Working for a Real Estate Owner/Operator
I recently celebrated my 10-year anniversary with Atlas, where I joined as the first hire in May 2011. When I started with the firm, I was single and living with two friends in NYC. I’m now married with two kids and a dog and live in the Jersey suburbs. A lot has changed, both for me personally and for the firm. It’s been a wild ride over the past decade; we bought 50+ deals with a market value over $1.3B, our investment strategies evolved, the team has grown, shrunk, and grown again. We’ve made many mistakes, and I’ve learned a ton. I took some time to reflect on my experience over the...
The Key to Multifamily Asset Management: Controlling Costs and Creatively Adding Value
Every so often I scan through the real estate forum on Wall Street Oasis and I recently came across an interesting thread titled ‘Contrarian Thesis: Acquisitions is the Least Interesting Job in Real Estate’. The post argued that acquisitions is a repetitive job wrought with frustration and best-suited for young analysts who are hungry and proficient with the latest technology. Asset and portfolio management, on the other hand, tend to be the most valuable and interesting roles. The asset managers recognize the value-add upside, know what it cost to renovate, have intimate knowledge of...
The Key to an Effective Value-Add Strategy: Hands-On Oversight
In my role at Atlas, I oversee our value-add multifamily strategy. We buy 1970’s – 1990’s class B value-add properties and seek assets that are priced below replacement cost and comparable sales, where we can add value at then property level, and that are in markets we like long-term. Adding value is hard. It requires a hands-on approach, local market knowledge, creative-thinking, and great management skills. At Atlas, we’re a lean team and hire 3rd parties to assist with property management, construction management, design and architecture, and marketing. As such, my role is largely...
5 Things I learned in 2018 and 5 Goals for 2019
Happy New Year, everyone! I hope you're able to unplug and enjoy quality time with family and friends. I find that time off, completely disconnected from the day-to-day grind of daily work is key to regaining focus and igniting the spark of creativity. 2018 was another productive year on ASotREG. I rolled out a site redesign (ASotREG 3.0), launched a new eBook on passive real estate investing, and published 14 new posts. I’m incredibly humbled and appreciative of everyone who has given me their attention. Your time is the most valuable asset you have, so it inspires me to do everything I...
I Write to Discover What I Think: The Power of the Quarterly Investor Letter
“I write to discover what I think. After all, the bars aren't open that early.” This is a well-known quote from American historian Daniel Boorstin and it’s exactly why I write this blog. I write about topics I find interesting, and the writing process enables me to tighten up my thinking. Some of my favorite posts such as the future of urban living, the impact autonomous cars will have on the built environment, and how to be an entreployee within your firm were ideas that I was interested in and wanted to vet further. I have a deep passion for unique housing models, I’m fascinated by the...
The One Book Every Student of the Real Estate Game Must Own
A key tenet of ‘A Student of the Real Estate Game’ is to never stop learning. In my day-to-day as a real estate professional, I spend a majority of my time in the weeds, acquiring and asset managing value-add multifamily real estate in a few specific markets. One day may be spent negotiating a Purchase and Sale Agreement for a new acquisition, the next may be spent working with our onsite GC to trouble-shoot renovation issues, and others may be spent on calls and meetings with brokers and property management staff. While I enjoy every aspect of the job, this leaves little time for...