Multifamily INVESTMENT PROPERTIES
acquire + renovate = cashflow
A multifamily residential property is one that contains more than one housing unit. Examples include duplexes, townhomes, apartment complexes and condominiums. These serve as great investment opportunities for new investors and can be an amazing wealth-building avenue. The number one reason many investors add multifamily investments to their portfolio is because it allows you to increase your income while simultaneously decreasing vacancy rates.
THE APPROACH.
A longstanding goal of Ephrem’s has been to acquire and assist investors in acquiring multifamily housing. This goal that he has now reached has turned into a passion to help house the families in our communities. Securing apartment units, renovating them to exceed industry standard and facilitate the placement of the people of our cities is the epitome of serving our community. In the past 10 years of his real estate career, Ephrem has sold over $10 million in commercial and residential multifamily housing. Through his prominent sphere of influence, Ephrem has access to off-market opportunities and has secured some of the greatest finds for his clients. As many know, off-market deals are a rare treasure especially in the multifamily sector of real estate as it offers limited competition. Ephrem is vigilant in observing, researching and cultivating relationships to ensure he is one of the first and few real estate agents to know of hot off-market deals.
Ephrem’s methodology in each acquisition of a multifamily investment is the same – purchase in the right locations, beautifully renovate the units and place fantastic tenants in the spaces. He has taken tough communities and totally transformed them throughout the metropolitan Phoenix area. In 2014, he purchased his first personal commercial property- an 11 unit apartment complex in Mesa, Arizona. Over the course of four years, the building was fully renovated, tenants placed making it fully occupied and oversaw the entire management of the building until its successful sale in 2018. Because Ephrem’s heart is truly in every project he is a part of, he wanted to do even more good. This particular building served homeless veterans that needed housing through a local Phoenix housing program. Additionally, one portion of the building was dedicated to assist foster children who were transitioning from the system to adulthood. Ephrem was featured in the Scottsdale Progress where his community service was spotlighted. Click here for the full article.
There is a lot that goes into multifamily investing. With years of experience in real estate, Ephrem has proven to possess a deep rooted understanding of the industry and has implemented these crucial tools to this segment. A key to success and trackability is to have a property management software in place that works for both the landlord and the tenant. This allows ownership of this type to be a seamless and stress-free one. Innovation is in his DNA. Whether it’s his own personal properties or that of his client’s – each is given exceptional care, dedication and commitment. Technology is the application for everything that is executed with multifamily investment properties. Tenants can easily access their accounts via the user-friendly portal. Here they are able to access their online account, pay rent, submit repair requests, directly send a lease application and so much more. Additionally, all properties are secured with state-of-the-art surveillance. All of these features make it possible to manage and oversee these properties from anywhere around the world providing ease and accessibility for our clients and prospect clients alike.
CRUNCHING THE NUMBERS.
The opportunities are endless in the commercial and residential multifamily division. A commercial building consists of five or more units and is based off of a Capitalization Rate or CAP Rate model. The cap rate represents the yield of a property over a one-year time possibility assuming the property is purchased with cash and not on loan. Most investors seek a solid 5-7% CAP rate or return on their investment. This is primarily achieved by obtaining a building that needs renovations, updated rental agreements and vigorous project management.
Residential multifamily units consist of four or less units and an excellent way for first-time homebuyers to live “mortgage free.” Four or less units do qualify for traditional financing methods including FHA or VA. More information on these types of loans can be found here.
Ephrem has built a reputation for having a keen sense in attaining the right investments, remodeling the spaces the right way and generating stable cash flows or exceptional return on investment. His tenacity is seen at every project site. Long hours, hauling his beloved trailer (nicknamed Casper) across town, limitless trips to the local home improvement store, directing and overseeing trades and of course getting into the trenches himself to get the job done! Ephrem’s determination to successfully execute a project knows no limits. Below you can find some before and afters of the impressive work he has done to turnaround unsightly properties and making them beautiful ones.
Executing effective strategies that create favorable and profitable outcomes is the objective. If you would like to discuss selling or purchasing multifamily units please contact Ephrem directly here.