The top questions to ask before selecting an advisor for your multifamily investments
Buying and selling multifamily real estate can be a challenging process that’s both time consuming and costly, if you don’t have the right trusted multifamily real estate expert by your side.
As an investor, it’s vital for you to choose to work with a highly driven and passionate multifamily investment advisor in order to gain the confidence, peace of mind, and success in your investments that you need.
To help you make your decision, we’ve created a list of the top 13 questions you need to ask a potential multifamily investment advisor before choosing them as a business partner.
#1: Do you specialize in multifamily real estate?
In the real estate market, most agents and advisors will deal in multiple different types of real estate — residential, commercial, industrial, raw land, and special use — and different types of properties such as multifamily and single-family.
As a multifamily real estate investor, it’s important for you to work with an advisor who specializes in your specific multifamily niche of the industry. An advisor who’s hyper-focused on your niche market will provide you with the highest quality advice, properties, and overall return on your investment as compared to an advisor who deals in all types of real estate or in many different niche categories.
#2: What’s your depth and breadth of experience in multifamily real estate?
With no specific license existing for multifamily real estate, the amount and depth of experience that your multifamily investment advisor has is the main way for you to evaluate their legitimacy.
Choosing a multifamily investment advisor that has successfully supported clients in their investment endeavors over the years shows that investors have trusted and benefited from their specialized expertise. Especially if you’re a first-time multifamily investor, working with an experienced advisor will be a huge asset to you.
#3: What services do you offer your clients?
Before looking for a multifamily investment advisor, it’s important for you to consider what services you need as an investor. Different advisors provide different services, so make sure the services they offer align with what you need.
If you aren’t sure of what you need, here are some services that an experienced and specialized multifamily investment advisor should offer:
— Marketing strategy
— Clear communication
— Network of buyers
— Turnkey solutions, and
#4: Do you operate within a proven process for multifamily investors?
To find the best multifamily investment advisor, search for one who works with a firm that operates under a proven process that is focused on the long-term success and results that you want.
Find an advisor who simplifies the process of locating and purchasing apartment buildings by handling the research, analytics, and insights for you. You also want someone who will evaluate your investment goals to help bring you success and results.
A proven process for multifamily investors might look like:
1: Property and market analysis
2: Engage marketing process
3: Generate multiple offers within 60 days
4: Go into contract with the best buyer
5: Expedite due diligence
6: Coordination financing, and
7: Facilitate closing.
#5: How do you guarantee that you’re offering the best properties on the market to your clients?
When you work with a multifamily investment advisor, they are the ones who will present possible new investments to you, so it’s essential to ensure they will supply you with the best investment options based on your interests.
Seek out an advisor who is a well-established expert of the industry with a firm understanding of your local market that can advise you on the most profitable properties available for purchase to get the best results for your investment.
#6: How do you add value to your clients?
Finding a multifamily investment advisor who adds value to you as an investor is what will make them stand out amongst others in the real estate field.
Adding value is essential in commercial real estate — your advisor should know more about your niche of real estate than you do for the partnership to be worthwhile. That’s why finding a multifamily-specific advisor is essential — it provides you with the most added value.
#7: What methods of communication do you use to connect with your clients?
Since your investments are worth both time and money, it’s essential that you learn the methods of communication used by your potential advisors to discuss findings, progress, and results. Finding a multifamily investment advisor with a clear communication method is an advantage for those who want to stay readily informed about their investments.
#8: Are you committed to transparency in your business dealings?
As with any business, you need transparency in your multifamily investment deals from all parties involved, especially your investment advisor.
Ensure that your multifamily investment advisor is committed to being honest and transparent with you about their opinions on your choices as your advisor. Also make sure they plan to notify you immediately of any discrepancies to avoid any miscommunications or investment snafus.
#9: Will you provide multifamily investment resources and education as needed?
One of the perks you should be looking for in a multifamily investment advisor is someone who will provide you with multifamily resources and education as needed to help you learn and grow your knowledge.
Find an advisor who will give you access to regular networking events, educational sessions, and a library of investor resources with videos, blogs, and more. The more tools they provide you to grow your knowledge, the more committed they are to their industry and their quest to support you in finding your success.
#10: Do you provide a comprehensive marketing strategy?
As a multifamily investor, you’ll likely be both buying and selling throughout your career. One of the vital aspects of selling properties is the marketing efforts used to get your property out to fellow investors looking to buy.
When deciding on the right multifamily investment advisor to work with, choose one who provides a comprehensive marketing strategy for sellers. Consider an advisor who combines comprehensive market research, state-of-the-art technology, and sophisticated communications systems to target the optimal buyers for your multifamily asset.
#11: Do you have an extensive network of buyers both inside and outside of your local market?
One of the central benefits of working with a multifamily investment advisor is access to their network of buyers. Look for an advisor who’s earned the trust and confidence of multifamily buyers that are always interested in purchasing additional properties.
In the digital world we live in today, the right multifamily investment advisor will also have the technology needed to market your properties not just locally, but across the nation — and even the globe. With drone videos and 3D virtual tours, buyers can get comfortable with your property without ever setting foot in it, greatly broadening your reach.
#12: Do you have partnerships that ensure comprehensive property management solutions for buyers?
If you’re working with the right multifamily real estate advisor, they’ll understand that the real work happens after closing for buyers.
Work with an advisor who has partnerships with organizations that ensure you’ll have the comprehensive property management solutions you’ll need to run your property successfully after closing.
#13: Can you provide me with a list of clients I can contact for references?
Finding a multifamily investment advisor with positive online or word-of-mouth reviews is important when seeking to work with the best advisor in your market.
Start by browsing Google and Facebook reviews as well as the website of the firm they’re affiliated with to see if people are speaking positively about the advisors, the firm, and the services they provide for their clients. If there are no online reviews, request a list of past and present clients you can contact for references.
The 100Units Difference
If you’re looking for the best multifamily investment advisor, look no further than 100units—Central Florida’s leading multifamily investment advisors.
Our group of highly driven, experienced, and passionate multifamily property investment advisors are committed to helping our clients and partners attain their commercial real estate goals.
To learn more, please contact us today to connect with one of our multifamily investment advisors.
Get the most from your multifamily investment!