Now is a great time to invest in apartment buildings as many investors have discovered. In fact, today’s real estate market is the hottest the country’s ever seen. The real estate market in Southern California is especially booming, making it hard to buy a first home; as a result, many people are renting. Apartment values have increased over 40% between 2012 and 2016. High employment and land barriers make real estate in Southern California extremely attractive to investors.
The LMU Real Estate Alumni Group (REAG) assembled a panel of real estate experts on the evening of October 25th to discuss successful apartment building investment strategies. The event was moderated by LMU Professor of Real Estate and Finance Chris Manning and featured the following panelists:
Mark Macedo MBA ’94, COO, Hanover Financial
Ryan Mansour MBA ’10, Managing Partner, RyaNik Group
Lorne Polger, Sr. Managing Director, Pathfinder Partners
Mark Dodson MBA ’11, VP, Northmarq Capital
Ed Hochman MBA ’10, President, Hawk Management
Key takeaways from the panel:
- Real estate is a very personal business and a great industry for an entrepreneur.
- It’s also relatively easy to get into; buy small and build from there.
- The brokerage industry is a great training ground for young real estate professionals as you build contacts and get to know the market intimately.
- Take a 10-year approach to whatever asset you decide to buy as this allows you to go through the cycle.
- Have a good relationship with your property manager.
- When things get bad, good opportunities arise.
- People are more motivated by quality of life; they want to live close to work and be able to walk to grocery stores, restaurants, etc.
- Be on the lookout for the next Culver City.
- Prepare to walk away from opportunities.
- Stay away from rent-controlled housing.