Some say that multifamily has become a victim of its own success and it can seem like the better the deal, the harder it is to come by. Those in the multifamily space are arguably deal junkies, who put a great deal of time into finding deals. When working this way, scouring hundreds of deals, it can be easy to only look at big numbers, meaning that many deals will pass you by.
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In this hyper-competitive landscape, this is far from ideal. Our guests today, Luke Leins and Matthew Green offer some of the innovative levers that they use to increase deal potential. They believe in the power of ‘getting granular’ which means steering away from using the general rule of thumb calculations and getting into the nitty-gritty of the numbers of a deal when underwriting. They also share with us some other creative ways of lowering expenses and how they are currently using technology to optimize their operational expenditure. Through bringing the gig economy model into the world of multifamily, their company has piloted a platform that helps them decrease maintenance expenses and this is just the beginning! They also provide insights into the exciting future of technology and multifamily and some of the innovative changes that this will bring. For this and more, tune in today!
Key Points From This Episode:
- Learn about the work that Matt and Luke are doing every day.
- An explanation of what CAP rate compression is.
- Discover some of the NOI levers that make a great deal for Matt and Luke.
- Why using rules of thumb when underwriting deals are costing you money.
- Insights into the app that Matt and Luke have been using to decrease the payroll burden.
- The systems that are in place to ensure the information Matt and Luke access is accurate.
- Renovation, additional income streams and streamlining expenses: items with great impact.
- Learn about some of the underwriting tools that InvestRes uses.
- How a commodity purchasing team has helped lower operating costs.
- Breaking up SEO per market: an additional way to cut down on marketing expenses.
- What Matt and Luke believe the future of technology and multifamily holds.
- Discover how ResProp is preparing for the predicted downturn.
[bctt tweet=”The multifamily market is more or less a victim of its own success. — Matthew Green” username=”whitney_sewell”]
Links Mentioned in Today’s Episode:
Luke Leins’s email — firstname.lastname@example.org
Matt Green’s email — email@example.com.
About Luke Leins and Matthew Green
Luke Leins is the Director of Business Development at InvestRes Real Estate. He was born in California and raised in Colorado. In 2011, he was awarded ‘Outstanding Graduate of 2011,’ a designation from the Colorado State University School of Business. Luke is both an Accredited Investment Fiduciary as well as a Certified Supply Chain Analyst. Before InvestRes, Luke scaled and built out a third-party multifamily platform for a top-four property management firm. He brings his prior entrepreneurial experience to every deal and is skilled at conveying the integration of technology to multifamily owners. In his personal life, Luke is an intrepid traveler having visited over 35 countries on 6 continents. Along with this, he is also involved in several non-profit organizations and philanthropies locally, believing that positive large-scale change happens at the individual level.
Matthew Green oversees InvestRes’s business footprint development, with a focus on Texas and the Southeastern United States. Before this, Matthew worked as the Associate Director of Acquisitions and Development at a Dallas-based multifamily investment firm. He also worked as an Analyst for a REIT with over $12B in assets. In total Matthew has overseen the acquisition of over 5000 apartment units and brings in-depth institutional real estate knowledge and a keen understanding of the deal cycle to InvestRes. Matthew holds a B.A. Colgate University as well as an M.B.A./M.S. Cornell University.
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