We all know how location is key to every real estate investment’s success. But it raises the question: how exactly do investors find good locations and evaluate the market or submarket for potential investment opportunities? In multifamily, in particular, what would be considered the best submarket? And why are some markets considered “hotter” than others?
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In the concluding episode of our series with Michael Zaransky of MZ Capital Partners, we home in on the process of selecting a location for ground-up multifamily projects. Michael offers ideas on the factors to consider when doing a market or a submarket review, what to do during a location visit, and where to source data to expand your research of the submarket. If you’re serious about finding the best submarket for your multifamily investment, this is for you!
Key Points From This Episode:
- Michael outlines the process of selecting a location for his projects.
- What factors does Michael consider when doing a market or a submarket review?
- Michael shares sources of data that they use for demographic research and submarket review.
- What does a physical visit to the potential project site entail?
- What does Michael wish he could have known as a young entrepreneur starting in the real estate business?
- Michael’s predictions on the real estate market over the next 6 to 12 months.
- How does Michael prepare for a downturn?
- What’s Michael’s best source for meeting new investors?
- The most important metrics that Michael tracks, the habits that helped him succeed, and his way of giving back.
- Michael’s contact details.
“The key or starting point is economics 101 of supply and demand.”
“I am extremely bullish on the future, at least within our end of real estate which is exclusively multifamily. The future is very bright. It’s hard to find dark clouds.”
“Inflation, which is affecting all kinds of things in our economy, has actually proven to be a good thing for multifamily – rents increase, mortgages become less portable, which means less people buy houses, which means they gotta rent.”
“It’s a great time to be raising money.”
“If we’re all honest with ourselves, the number one thing is luck. I was at the right place at the right time.”
“We like to do good while doing well.”
Links Mentioned in Today’s Episode:
About Michael Zaransky
Michael Zaransky is the founder and managing principal of MZ Capital Partners. MZ Capital Partners has been recognized by INC Magazine as one of the fastest-growing private companies in America by placement on the INC 500 list of companies. Michael has a wide range of real estate, banking, and financial experience and has been a licensed Illinois real estate broker since 1979. Michael is a member of the Young Presidents’ Organization (YPO-Gold), the National Apartment Association, the National Multifamily Housing Council, and the Urban Land Institute.
He is a James Scholar graduate of the University of Illinois Urbana-Champaign and earned his J.D. at Northwestern University School of Law. Michael has published numerous articles and lectured nationally on the subject of real estate investment. His real estate investment books “Profit by Investing in Student Housing” and “Purchase Rehab, and Reposition Commercial Investment Property”, real estate category best sellers, were published by Kaplan Publishing and are sold in major bookstores and online booksellers.
Active in numerous trade, civic, and professional associations, Michael is a board member of the National Multifamily Housing Council (NMHC) and serves on the Executive Committee, as the immediate past chairman of the board, of the Jewish Federation of Metropolitan Chicago/Jewish United Fund, one of the largest philanthropic organizations in the nation.
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