Investing in real estate can be an excellent way to diversify your investment portfolio and generate consistent cash flow. However, investing in real estate can be a complex process, especially if you are new to the market. That’s where choosing the right investment manager comes in. It’s essential to partner with a manager that truly understands the nuances of the market, and how to successfully manage assets to maximize returns. Let’s dive in, to provide you with some valuable insights on what to look for in a manager when investing in multi-family real estate.
Experience Counts
The first thing you should look for in a real estate investment manager is experience. How long have they been in the business? What is their track record? It’s crucial to find a manager who has a track record of success and is focused on a specific sector of the real estate market. We believe past performance can be a good indicator of future success. The manager should have a history of generating consistent returns and mitigating risks. For example, Ackermann Group has solely focused on multi-family investments for the last decade and achieved an average IRR of 21%. This kind of experience and track record can give you the confidence to invest in a manager’s strategy and long-tenured executive team.
It is imperative to partner with a manager with experienced professionals who understand the market’s complexities and can navigate the changing real estate landscape. Meet our team of expert executives who run our investments.
A Comprehensive Approach: Investment Strategy and Transparency
It’s not just about investing in great properties. A great real estate investment manager should have a comprehensive approach that covers the whole investment lifecycle. This includes investment, support teams, and asset management services. Ackermann Group provides a full-service approach that is supported by a team of experienced executives and in-house human resources, marketing, and accounting services. This approach sets us apart from other managers in the market and gives us a competitive advantage, especially when it comes to executing our strategy.
It is crucial to partner with a manager with a clear investment strategy that aligns with your investment goals and one that has the established transparency to communicate that strategy and its results. You need to understand the approach the manager takes to identify opportunities and mitigate risks to ensure that your risk tolerance aligns with their investment approach. Ackermann Group’s strategy involves leveraging supply/demand imbalances due to housing shortages, adjusting to changing market conditions, seizing opportunities from a growing volume of loan maturities looking to exit, and expanding into secondary Southeast submarkets where value still exists.
Here’s a quick overview of Ackermann Group’s Investment Strategy:
- Our tax strategy utilizes segregation studies to capture significantly more depreciation, which is passed on to investors as a passive loss on their Schedule K1.
- Our supplemental loan program ensures capital is returned quickly to investors to minimize risk.
- Property values increase through a value-add investment strategy, including property renovations and operational improvements. We achieve top-line revenue growth through rent and other income by implementing efficient operating processes, restoring deferred maintenance, and improving curb appeal. We believe that if you take care of your properties, the properties will take care of you.
A trustworthy investment manager should be willing to give you access to their portfolio and provide detailed information about their investments. We would love to go in-depth into our full strategy and return history. Get in Touch.
Market Knowledge
The quality of the team is one of the most critical factors to consider when investing in multi-family real estate. A good investment manager should have a team of experienced professionals who know the market and can manage the investment process from start to finish. The team should be well-versed in property management, leasing, maintenance, development, acquisitions, and investor relations. A great investment manager should have a deep understanding of the market within which they operate. This includes knowing the drivers of demand and supply, emerging trends, regulatory changes, and any other factors that can impact the real estate market. Ackermann Group’s history of investing in markets within 400 miles of their headquarters creates deep relationships crucial for creating value. We are well-versed in the market dynamics of the region, creating opportunities for successful projects.
It’s a good sign when a manager’s executive team invests alongside clients. This indicates confidence in their strategies and aligns their interests with those of their investors. At Ackermann, the executive team is invested alongside investors, showing their faith in their approach.
Conclusion
Investing in multi-family real estate can be an excellent way to diversify your investment portfolio and generate consistent cash flow. However, it’s essential to invest in the right manager to help you navigate the process and maximize returns. When selecting your real estate investment manager, look for experience, a comprehensive approach with a clear strategy and transparency, an expert team, and a deep understanding of the real estate market. Ackermann Group ticks all these boxes and more, providing a comprehensive and effective approach to real estate investment, property, and asset management. Ackermann Group’s consistent track record and comprehensive approach make them a strong candidate for those seeking to maximize their returns in real estate.
Check out Ackermann’s services and start your multi-family real estate investment journey today. Contact us to learn how we can help you achieve your investment goals.
Topic Tags: Investment Resources, Market Knowledge, Maximizing Returns
