Why Purchase Multifamily Portfolios?

Improve Your Multifamily Investments

As deal volume begins to pick up year-over-year, it has become difficult for owners to deploy capital while making the best decisions. What are some ways of doing so? There’s the tried and true method of hunting the best individual deals, one-off assets, as offering memorandums come in from brokers or JV partners. Alternatively, owners can pump money back into existing properties to command higher rents and better establish themselves in markets where they already have a presence.

Where redIQ Makes the Difference 

redIQ grants investors, brokers, and lenders on teams of all sizes the ability to screen more deals more efficiently than ever before. Everyone with access to the platform gains a suite of solutions, ready insights into the merit and value of each deal that comes across their desk, whether it’s part of a portfolio or a one-off deal. Analysts can effortlessly pinpoint discrepancies in property data, and team leads can monitor and track their work, all while creating a dynamic database of every asset they have underwritten.

Diversifying Your Assets

If those two solutions prove inadequate for meeting investment targets and do not provide enough avenues for capital disposal, another solution exists: acquiring multi-asset portfolios. Acquiring multiple complexes in a single deal can take away the headache of searching piecemeal for assets and instead guarantees the addition of several properties across either one or several markets to a company’s existing assets.

If a team wants to diversify with a foray into a new market, a portfolio deal with assets spread across a desirable mix of growing cities like Austin or Miami can offer a bulwark against volatility elsewhere. Portfolios have the bonus of creating a solid base in whatever markets you’re targeting. Gaining several assets in different markets creates instant familiarity with local quirks and generates valuable data. This information can allow owners to learn how best to succeed within a given submarket. This knowledge makes it easier to find future acquisitions that fit with the existing portfolio and accommodate local expectations.

A drawback of portfolio deals is the volume of work and analysis that it takes to assess the relevant markets and the assets included in the deal. To properly consider the upside and risk associated with such a significant transaction, valuable time must be expended. Reassigning analysts and devoting additional resources can help, but that is not a long-term solution. However, technology can offer help to teams that want to tackle larger projects, with benefits that extend to any underwriting.

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