Strategic Opportunity: Multi-Family Rentals

 A.  Disciplines

  • Rehab & Repair
  • Repositioning
  • Mortgage Workout
  • Asset Management
  • Turnaround
  • Consulting

B. Virtues of Multi-Family Investment

1.  Utility

    • Basic necessity
    • Everyone needs a roof over their head … but not necessarily an extra 1,000 sf of office or a new retail outlet
    • Elastic — always a tenant at some price
    • Growing population — especially renters
    • Relatively easy to finance and sell

2. Straightforward Management

    • Residential far simpler than commercial & retail
    • Tenant credit — fairly straightforward to determine
    • Billing — doesn’t involve complex common area charge-backs
    • Leases are all uniform — no special terms
    • Leases are independent — they don’t require “anchor” tenants for example
    • Marketing is simple — no need to recruit a tenant in a certain business or of a certain size
    • Building use is for residential purposes — does not have to be adapted to particular business functions
    • Tenant improvements are always the same — do not have to be customized to the use of various tenants

C. Risk Management

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