WHO NOT HOW: Building a Multifamily Real Estate Legacy Was Never Meant to Be a Solo Journey.

By: Laura DeVaney | Co-Founder

WHO NOT HOW

Building a Multifamily Real Estate Legacy Was Never Meant to Be a Solo Journey

Multifamily real estate investing involves many moving parts. From identifying opportunities and underwriting properties to financing, renovations, property management and investor communication, executing an investment strategy requires expertise across multiple areas.

For investors, the goal does not necessarily have to be learning how to do every part of the process themselves.

Instead, there may be a more useful question:

“Who has the experience and expertise to help accomplish this?”

This is the idea behind “Who Not How.”

What Is “Who Not How”?

Rather than asking:

“How do I do everything myself?”

Ask:

“Who has the experience and expertise to help accomplish this?”

In multifamily real estate investing, different professionals may be responsible for sourcing opportunities, underwriting potential investments, arranging financing, managing renovations, overseeing property operations and communicating with investors.

For passive investors, understanding who is responsible for each part of the investment can be an important component of due diligence.

When Should Investors Ask, "Who?"”

Before investing.

Evaluating an investment opportunity involves more than reviewing the property itself.

Investors may also want to understand the people responsible for executing the business plan.

Consider asking:

• Who is finding and evaluating the opportunity?

• Who is underwriting the deal?

• Who is operating the property?

• Who is managing renovations?

• Who is monitoring income and expenses?

• Who is communicating with investors?

Understanding these responsibilities can provide greater clarity about how an investment is expected to operate.

Where Does the “Who” Matter?

The people behind an investment can play a role throughout the entire investment lifecycle:

Acquisition → Financing → Operations → Renovations → Asset Management → Investor Communication → Exit

Each stage requires different skills, responsibilities and areas of expertise.

That is why evaluating the team can be just as important as understanding the property, market, financing structure and overall business plan.

How Should Investors Evaluate Their “Who”?

Start with due diligence.

Look beyond the property and take time to understand the team responsible for executing the investment strategy.

Investors may want to consider:

• Experience and track record—What relevant experience does the team have?

• Roles and responsibilities—Is it clear who is responsible for each part of the investment?

• Operating expertise—How does the team approach property and asset management?

• Investor communication—How and when will investors receive updates?

• Ability to navigate challenges—How has the team handled changing market or operating conditions?

• Capital management—How will investor capital and property finances be managed?

No single factor determines the outcome of an investment, but asking these questions can help investors make more informed decisions.

Your “Who” Should Support Your “Why”

Before choosing an investment opportunity or investment partner, it is important to understand your own objectives.

Your investment goals might include:

Income • Long-Term Wealth • Diversification • Retirement • Future Generations

Different investors may have different priorities, time horizons and risk considerations.

Understanding your “why” can help you evaluate whether an opportunity, strategy and investment team align with your individual objectives.

The Investor Takeaway

You don't have to know every “how.”

But you should understand who is responsible for executing the plan.

Multifamily investing is rarely the work of one person. It involves a team of professionals working across acquisitions, financing, operations, renovations, asset management, and investor relations.

For passive investors, knowing the people behind an opportunity—and conducting appropriate due diligence on their experience, responsibilities, and approach—can be an important part of evaluating an investment.

NEXT LEGACY GROUP

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