The Acquisition Process and Market Selection

[Jorge Abreu]

The acquisition process is crucial in real estate investment. Without a deal, you can't do real estate. Managing the assets is important, but it's the deal that makes it all happen. Without one, we're just going around and around in circles.

Multifamily real estate is a lot more old-school than single-family properties. It's not as easy as swiping left on a dating app to find what you're looking for. Nah, you won't find many multifamily listings online. They are mostly in the hands of those big-shot brokers who have the monopoly on them.

To find deals, it's crucial to choose the right market. I usually recommend focusing on three markets at a time. Look for markets with population and job growth. These indicators show how stable the market is. If a town boasts over a hundred thousand residents, you're on the right track. It’s a good indication that the market's got some staying power.

Historical performance is key when it comes to picking the right market. I like to do a deep dive into the past decade or so to see how a market has fared. This gives me a sense of its diversity and resilience. Of course, I also keep my eyes on the last five years to get a more recent perspective.

After finding the ideal market, time to zoom in and find the sweet spots within it. That's where data analysis and relationship building come in. Crunch those numbers on population, job, and rent growth, but don't forget to hit the pavement and chat with the locals. They'll have more “unofficial data” on those hidden gems that doesn’t show up on spreadsheets

Now for some little wisdom from my early days in the real estate game. I learned the hard way that getting down and dirty, reaching out to sellers and developers, was the way to go. I reached out to sellers and developers, which led to our first few deals. Looking back, I realized the importance of focusing on the data and leaving emotions aside. Don't let attachments or personal feelings cloud your judgment.

Building relationships is another critical aspect of real estate investing. Collaborating with brokers, vendors, and partners is essential. Brokers play a significant role in finding deals and providing industry insights. By building rapport and establishing trust, you become top of mind for brokers when they come across potential deals.

Let's go!