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REAL ESTATE Investors snatch up apartment complexes - AZ Republic 9-6-07

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gita73

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Sep 5, 2007
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The following article was published today (9-6-07) in the Business section of the Arizona Republic:

http://www.azcentral.com/arizonarepublic/business/articles/0906biz-apartmentsales0906.html

Comments?

Based on Berges' book, Buying and Selling Apartment Buildings, as a new investor in apt bldgs, I would want to look at acquiring a smaller property of 50 units or less and be directly involved in the operations of the property. That would require me to purchase in the Phx area. Is it too late (or is never too late) to get into Phoenix in this small apartment complex arena?
 

andviv

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That's a question for SteveO. Thanks for sharing the article. Good find.

EDIT:
Vollucci's book, on the other hand, suggests that you go where you can find great prices and the area has numbers showing improvements. Not necessarily staying in your area. Two different approaches, so maybe you can get into multifamilies indirectly, without being the PM for the first property.
 
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SteveO

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amazing,

Here are two partners talking about the two books that I used to form my entire process.

Vollucci's book is invaluable for evaluating "Where to Buy". Berges on the other hand is more geared on "How to Buy". I definitely think that buying in the right place at the right time is just as important as buying knowing how to find the value added deals.

But, you want both.

It does not hurt to get some "hands on" experience. It is not that critical though. It is much more important to have an experienced and effective management team for the property.

Phoenix has gone through its major growth spurt in apartment values. There is still some growth to be had but the main jump is long gone in my opinion. There have been plenty of buyers that jumped into this market during the past couple of years that would not likely make it past a down cycle if renters bailed out in mass. That would be the time to buy here. Poor management always shows up best when the going is tough.
 

gita73

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Sep 5, 2007
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Thanks andviv and Steve! I appreciate the comments.

andviv, I am currently partnered in a multifamily project in Houston. So far, it has been a great learning experience. So, I agree with you, just getting into the market can get you jumpstarted.

Steve - Thanks for explaining the difference in Vollucci's and Berges' books. Berges does a great job of explaining the value play, and now I'm looking forward to starting Vollucci's book.
 

SteveO

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Perhaps you could post a review of Berges book here.
 

iiinvisi0n

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Sep 25, 2007
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That article makes me kinda warm and fuzzy. I have a corporation in the works and Im looking for these big complexes with 40+ units. We are starting a full service company that will hold, manage, and sell the properties. However we are looking to grow a large property portfolio with our ownership focused in most of the properties. We would like to eventually expand from apartments to all different kinds of commercial properties including retail and REITs.....I am just so freakin juiced!!
A lot of people say you cant start big, but I ask why not? It takes experience as I have learned, and thats why I intend to hire professionals who can appreciate our companies goals as much as we do. After all when we win they win!
I cant stress enough how cool it is to find a site like this!
:smxF:

Mike
 

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