All Forum Posts by: Chris Magistrado

Quote from @Mike Lambert:

Quote from @Chris Magistrado:

Quote from @Mike Lambert:

@Levi T. As I suggested and you confirmed, the Côte d'Azur is a great place for capital gains but what I meant isn't necessarily where you're going to get high rental yields.

What @Chris Magistrado mentioned represents a good depiction of the situation in Southern Italy. But Southern Italy is not representative of the majority of Europe. I'm European, spent most of my life in Europe and have owned property in several European countries and I can tell you categorically that it doesn't not reflect the situation in most European markets and, by the way, Chris rightfully never suggested that it does.

Of course, if Americans want to reap the benefits of investing in Europe, they'd ideally need to, as you suggest, get the right market knowledge, understand the local financing and housing laws and I'd add to this the legal system. But isn't that's par for the course? What prevents them from doing that?

Now, if they don't want to do that for whatever reason and don't have anybody to work with who would do that for you, I'd have to agree with you that they'd better invest at home rather than getting involved in something they don't understand. Mind you, even if you invest at home, you need to do the/some work.

Thanks for your reply! 

I do believe there are great markets in Europe. And I believe you might have some insights on this better than most as you are an investor in both the US and EU markets. The US Tax systems, when compared to the EU, seems to be setup for capitalists. 1031 exchanges, write-offs, etc. From a tax perspective, are there countries that are more friendly when it comes to tax advantages than others? Or are taxes one of the things that is line on the spreadsheet that just has to make sense in regards to the overall deal? 

I'll also say I know near to nothing about European tax laws, but it does seem the United States does provide some benefits for investors. Does the EU have similar types of benefits? Thanks for your response! 

You're welcome and you're correct. However, between the much lower mortgage interest rate in Europe and a better tax treatment in the US, I'd choose the former. There is no contest.

Gotcha that makes sense. I thought people would just refinance their loan if they got it at a high interest rate, reducing the risk of jumping into the market at a bad cycle.

@Montse C., @Mike Lambert, @Henry Clark are you able to pull out equity of a property and use it to purchase another property like in the US? LTV 70%-80%, etc. What does it look like to scale a portfolio in Europe?

Quote from @Mike Lambert:

@Levi T. As I suggested and you confirmed, the Côte d'Azur is a great place for capital gains but what I meant isn't necessarily where you're going to get high rental yields.

What @Chris Magistrado mentioned represents a good depiction of the situation in Southern Italy. But Southern Italy is not representative of the majority of Europe. I'm European, spent most of my life in Europe and have owned property in several European countries and I can tell you categorically that it doesn't not reflect the situation in most European markets and, by the way, Chris rightfully never suggested that it does.

Of course, if Americans want to reap the benefits of investing in Europe, they'd ideally need to, as you suggest, get the right market knowledge, understand the local financing and housing laws and I'd add to this the legal system. But isn't that's par for the course? What prevents them from doing that?

Now, if they don't want to do that for whatever reason and don't have anybody to work with who would do that for you, I'd have to agree with you that they'd better invest at home rather than getting involved in something they don't understand. Mind you, even if you invest at home, you need to do the/some work.

Thanks for your reply! 

I do believe there are great markets in Europe. And I believe you might have some insights on this better than most as you are an investor in both the US and EU markets. The US Tax systems, when compared to the EU, seems to be setup for capitalists. 1031 exchanges, write-offs, etc. From a tax perspective, are there countries that are more friendly when it comes to tax advantages than others? Or are taxes one of the things that is line on the spreadsheet that just has to make sense in regards to the overall deal? 

I'll also say I know near to nothing about European tax laws, but it does seem the United States does provide some benefits for investors. Does the EU have similar types of benefits? Thanks for your response! 

Quote from @Rene Hosman:

Quote from @Chris Magistrado:

Hope this thread isn't completely dead, but I wanted to weigh in my views for investing in Italy.

I've been living here for almost 2 years now, and have been spending time trying to understand the market more. I will preface by saying that I haven't invested here, but I have spoken to other investors who are here. Additionally, I am in the South of Italy, so my perspective will be of that of someone who has studied the people here. (My profile photo is actually me on a boat going across the Adriatic Sea from Brindisi, Italy to Greece) The north and south seem to be different in their views of business, as the south are more relaxed and the north, so I've been told, are more capitalistic. This is only a guess, take it with a gain of salt. I am 'boots on the ground' in case anyone wants to use us to make calls or inquire more information. That said, here is what I've learned.

1. Employment Rate: Italy has historically had one of the lowest employment rates in Europe. In 2024, approximately 62% of Italians aged 15 and above were employed, compared to the European Union average of 71%. This figure represents the highest employment rate ever recorded in Italy, indicating a positive trend despite remaining below the EU average. https://www.statista.com/topics/12899/employment-in-italy/

2. Population Growth Rate: Italy's population has been experiencing a gradual decline. In 2025, the population is estimated at 58,518,843, marking a 0.3% decrease from 2024. This downward trend has been consistent over the past decade, with annual declines ranging from 0.15% to 0.44%. https://www.macrotrends.net/global-metrics/countries/ITA/ita...

3. Birth Rate: The birth rate in Italy has been steadily decreasing. In 2025, it is projected at 7.016 births per 1,000 people, a slight decline from 7.026 in 2024. Over the past decade, the birth rate has dropped from 8.354 in 2015 to 7.016 in 2025, reflecting a continuous decline. https://www.macrotrends.net/global-metrics/countries/ITA/ita...

4. Death Rate: The death rate has been gradually increasing. In 2025, it is projected at 11.119 deaths per 1,000 people, up from 11.026 in 2024. Over the past decade, the death rate has risen from 10.192 in 2014 to 11.119 in 2025. https://www.macrotrends.net/global-metrics/countries/ITA/ita...

Italy is in a unique position, where all the youth are either leaving for college, or once they get their degree, they leave Italy to go take jobs in other EU countries. Because they're EU citizens, they can live and work anywhere in the EU. The majority of people that are still in Italy, are the older population who are mostly on pension. I'm unsure if it's the entire EU, but forsure in Italy, they receive a pension at a certain age. This, and the work ethic here are completely different than a capitalistic country like the United States. With the given of pension so long as you work, most of the working class do not aspire or create businesses here. Additionally, the cost to create a business here is not as inexpensive as the United States, in some cases it can cost thousands of dollars to setup. While that is not a big hurdle, it should at least start to give you an understanding of the mentality the Italian government have towards business owners. Corporate Income Tax are 24%, however banks and insurances companies are higher with an additional 3.5%

Mortgage in Italy
It's also important to note that there are no Mortgage companies here, everything is done with 1 of the very few banks here. They hold all the cards. When I asked for a loan, they asked if my business received money in Euros. I told them no, they said the best they can do for a mortgage was for me to pay 50% down. That being said the, interest rate was very low. 1%-2%.

Appreciation Value
Over the entire country, the appreciation value of homes only increases 1%-2%. Look above and see the population to learn why.
 

1 Euro Houses
There are certain towns in Italy where the population growth had dropped dramatically, that some towns have been completely abandon. All the youth have left, maybe the elders are still there or they are deceased and the children don't want the property. Internet capabilities are low, and no one wants to live there. The houses are sold very cheap, however to fix them up, you are usually investing about $30k-$100k to make them livable. As an American, we love our amenities. So I'm sad to say, that because of the local italian government, any reconstruction of these types of buildings, must follow the guidelines of what is allowed and not allowed. You can rent these units out, but there aren't many people who want to rent and live in it. You could set it up as an Airbnb, but that brings me to the next section.

Airbnb & STR Value
Almost all of the major cites, especially Florence, have created bans on new Airbnbin their cities. For the case of Florence, there are college students there who are having a hard time finding housing due to all the units becoming Airbnbs. The government has now started creating laws to stop the growth of Airbnb. It's also important to note that because much of the Italian citizens that are there and can vote are in the older demographic, much of the laws and policies are to keep them happy, which means less development and growth. It also keeps to a nationalistic conservative agenda, and without capitalism, it is just cuts to programs, and no investment into other areas. 

I have stayed at Airbnb's in Rome and Naples, and there are Airbnbs of course, but you really need to speak and learn the system. The one in Naples took a 4 bedroom, and divided it up to 4 Airbnb units. 

Expat network
Most of the expats I've met here in the south are retired and want to just relax. Many from non-EU countries, and because of Brexit, some brits here that don't want to leave. 

Military Housing
One opportunity I did hear about, is military housing. Apparently the US government will pay for the rent of enlisted men if the property is close to a military base. I think this actually happens all over the world, but some landlords will increase their rent to the amount that the US government is willing to spend on rent in that location. So while the rent prices on an island like Sardinia is low, the landlords will increase the prices for the military members because it comes out the US pocketbook.

Rehabs
There are no Home Depots, Walmarts, Costco's. This is on hard mode. What the local shop has, is what you get, unless you want to travel farther to see what else others have. Calling on the phone is usually useless as they'll tell you to come in. Even if you're hours away. And if you need to import something into Italy, add 20% to the cost of whatever it is you want in, due to the VAT tax. (This includes Amazon)

Equity Loan 
The last opportunity I've thought about recently, is taking the equity out of the house here in Italy, and investing it into a property in the US where appreciation is higher. Since loans here can be as low as 1% interest, and the LTV is up to 50% a property, I think you can take the equity out, get a small loan here, and put the money into an investment property in the US. The money generated could pay for both loans, and even cash flow.

Italian Buraccuracy
I thought the United States is slow and has poor processes set, but here is absolutely worse. Imagine you aren't able to make a phone call to get information and you need to physically go to where the person is to speak with them. This is how much of the businesses are here, not even talking about the Italian government. The laws shift and change frequently, and no one really seems to understand the process, and if they do, they are never incentivized to actually help you. As I stated above, maybe it is because I'm in the south, but if you attempt to speak with people, conducting due diligence, they become offended you would question anything they provide. 

Outside of Real Estate
Many of the business here in the south don't use digital marketing, ads, etc. So anyone who advertises or uses ANY marketing technique, can really advance businesses here. 

When it makes sense to invest in Real Estate in Italy
If you are looking for appreciation growth, or increased rental rates, I don't think Italy will be a good investment unless you are getting some of the best areas. I have seen appreciation in Milan as a market. Rome is probably good too, any major city will be much better than the rest of Italy. When you get to rural areas, even in Tuscany, you need to more risk-adverse as the property value might not increase, unless you have another operating business on it like a boutique hotel or vineyard, that you can blast social media influencers to get more people to come. If you don't have a content deliver network to show why people should come to your rural region, you might have a much more difficult time. If you're investing in major cities, you'll have an easier time with occupancy rates for STR for Airbnb, but will have be very cautious about the changing laws. I'd recommend either being in Italy for some time out the year, every year you have property here, or have someone physically here (like me!) who can monitor your investment closely.

I hope this provides some perspective on the situation here in Italy! I'm happy to answer any additional questions as best as I can.

 What a well thought out response! I'm curious with you and your wife, how did you decide it was worth it to put the 50% down and purchase? Because you plan to be there a long time? Was it cheaper in the long-run than renting? 

Great question Rene!
We actually determined it was NOT worth it to pay 50% down on the property. The first reasons was that it's way too much to come out of pocket. The second reason is that there's no appreciation value. Third reason, which I think many people here in the south have, (and possibly the north), is that the homes for her family are all already paid off. This means there's not really an incentive to buy another house to be able to still be established here in Italy, since it's entirely possible she will inherit it later. 

With all of these reasons, it makes more sense to invest in other locations.

Quote from @Montse C.:

Quote from @Levi T.:

I live near Nice France half the year. Europe is not a good market for investing. It’s too much to explain, just not worth it… Invest in America, vacation/live in Europe…

While Europe might not have worked for some, it offers incredible opportunities depending on the market and strategy.

As someone living in Europe, specifically the Netherlands, I’ve found house flipping here to be a strong investment avenue, especially with the high demand for housing. Spain is also another promising market we’ve been exploring, particularly for its growing tourism and rental opportunities.

Currently, we’re also reaching out to US investors who might be interested in exploring these markets with us. The potential is definitely there for those who want to diversify and expand beyond the US market.

Would love to hear more about your experiences and why you feel Europe hasn’t worked for you. It’s always insightful to exchange views!

Very interesting! Would you be able to share some of the numbers you've seen in the flips for the Netherlands and Spain?

Hope this thread isn't completely dead, but I wanted to weigh in my views for investing in Italy.

I've been living here for almost 2 years now, and have been spending time trying to understand the market more. I will preface by saying that I haven't invested here, but I have spoken to other investors who are here. Additionally, I am in the South of Italy, so my perspective will be of that of someone who has studied the people here. (My profile photo is actually me on a boat going across the Adriatic Sea from Brindisi, Italy to Greece) The north and south seem to be different in their views of business, as the south are more relaxed and the north, so I've been told, are more capitalistic. This is only a guess, take it with a gain of salt. I am 'boots on the ground' in case anyone wants to use us to make calls or inquire more information. That said, here is what I've learned.

1. Employment Rate: Italy has historically had one of the lowest employment rates in Europe. In 2024, approximately 62% of Italians aged 15 and above were employed, compared to the European Union average of 71%. This figure represents the highest employment rate ever recorded in Italy, indicating a positive trend despite remaining below the EU average. https://www.statista.com/topics/12899/employment-in-italy/

2. Population Growth Rate: Italy's population has been experiencing a gradual decline. In 2025, the population is estimated at 58,518,843, marking a 0.3% decrease from 2024. This downward trend has been consistent over the past decade, with annual declines ranging from 0.15% to 0.44%. https://www.macrotrends.net/global-metrics/countries/ITA/ita...

3. Birth Rate: The birth rate in Italy has been steadily decreasing. In 2025, it is projected at 7.016 births per 1,000 people, a slight decline from 7.026 in 2024. Over the past decade, the birth rate has dropped from 8.354 in 2015 to 7.016 in 2025, reflecting a continuous decline. https://www.macrotrends.net/global-metrics/countries/ITA/ita...

4. Death Rate: The death rate has been gradually increasing. In 2025, it is projected at 11.119 deaths per 1,000 people, up from 11.026 in 2024. Over the past decade, the death rate has risen from 10.192 in 2014 to 11.119 in 2025. https://www.macrotrends.net/global-metrics/countries/ITA/ita...

Italy is in a unique position, where all the youth are either leaving for college, or once they get their degree, they leave Italy to go take jobs in other EU countries. Because they're EU citizens, they can live and work anywhere in the EU. The majority of people that are still in Italy, are the older population who are mostly on pension. I'm unsure if it's the entire EU, but forsure in Italy, they receive a pension at a certain age. This, and the work ethic here are completely different than a capitalistic country like the United States. With the given of pension so long as you work, most of the working class do not aspire or create businesses here. Additionally, the cost to create a business here is not as inexpensive as the United States, in some cases it can cost thousands of dollars to setup. While that is not a big hurdle, it should at least start to give you an understanding of the mentality the Italian government have towards business owners. Corporate Income Tax are 24%, however banks and insurances companies are higher with an additional 3.5%

Mortgage in Italy
It's also important to note that there are no Mortgage companies here, everything is done with 1 of the very few banks here. They hold all the cards. When I asked for a loan, they asked if my business received money in Euros. I told them no, they said the best they can do for a mortgage was for me to pay 50% down. That being said the, interest rate was very low. 1%-2%.

Appreciation Value
Over the entire country, the appreciation value of homes only increases 1%-2%. Look above and see the population to learn why.
 

1 Euro Houses
There are certain towns in Italy where the population growth had dropped dramatically, that some towns have been completely abandon. All the youth have left, maybe the elders are still there or they are deceased and the children don't want the property. Internet capabilities are low, and no one wants to live there. The houses are sold very cheap, however to fix them up, you are usually investing about $30k-$100k to make them livable. As an American, we love our amenities. So I'm sad to say, that because of the local italian government, any reconstruction of these types of buildings, must follow the guidelines of what is allowed and not allowed. You can rent these units out, but there aren't many people who want to rent and live in it. You could set it up as an Airbnb, but that brings me to the next section.

Airbnb & STR Value
Almost all of the major cites, especially Florence, have created bans on new Airbnbin their cities. For the case of Florence, there are college students there who are having a hard time finding housing due to all the units becoming Airbnbs. The government has now started creating laws to stop the growth of Airbnb. It's also important to note that because much of the Italian citizens that are there and can vote are in the older demographic, much of the laws and policies are to keep them happy, which means less development and growth. It also keeps to a nationalistic conservative agenda, and without capitalism, it is just cuts to programs, and no investment into other areas. 

I have stayed at Airbnb's in Rome and Naples, and there are Airbnbs of course, but you really need to speak and learn the system. The one in Naples took a 4 bedroom, and divided it up to 4 Airbnb units. 

Expat network
Most of the expats I've met here in the south are retired and want to just relax. Many from non-EU countries, and because of Brexit, some brits here that don't want to leave. 

Military Housing
One opportunity I did hear about, is military housing. Apparently the US government will pay for the rent of enlisted men if the property is close to a military base. I think this actually happens all over the world, but some landlords will increase their rent to the amount that the US government is willing to spend on rent in that location. So while the rent prices on an island like Sardinia is low, the landlords will increase the prices for the military members because it comes out the US pocketbook.

Rehabs
There are no Home Depots, Walmarts, Costco's. This is on hard mode. What the local shop has, is what you get, unless you want to travel farther to see what else others have. Calling on the phone is usually useless as they'll tell you to come in. Even if you're hours away. And if you need to import something into Italy, add 20% to the cost of whatever it is you want in, due to the VAT tax. (This includes Amazon)

Equity Loan 
The last opportunity I've thought about recently, is taking the equity out of the house here in Italy, and investing it into a property in the US where appreciation is higher. Since loans here can be as low as 1% interest, and the LTV is up to 50% a property, I think you can take the equity out, get a small loan here, and put the money into an investment property in the US. The money generated could pay for both loans, and even cash flow.

Italian Buraccuracy
I thought the United States is slow and has poor processes set, but here is absolutely worse. Imagine you aren't able to make a phone call to get information and you need to physically go to where the person is to speak with them. This is how much of the businesses are here, not even talking about the Italian government. The laws shift and change frequently, and no one really seems to understand the process, and if they do, they are never incentivized to actually help you. As I stated above, maybe it is because I'm in the south, but if you attempt to speak with people, conducting due diligence, they become offended you would question anything they provide. 

Outside of Real Estate
Many of the business here in the south don't use digital marketing, ads, etc. So anyone who advertises or uses ANY marketing technique, can really advance businesses here. 

When it makes sense to invest in Real Estate in Italy
If you are looking for appreciation growth, or increased rental rates, I don't think Italy will be a good investment unless you are getting some of the best areas. I have seen appreciation in Milan as a market. Rome is probably good too, any major city will be much better than the rest of Italy. When you get to rural areas, even in Tuscany, you need to more risk-adverse as the property value might not increase, unless you have another operating business on it like a boutique hotel or vineyard, that you can blast social media influencers to get more people to come. If you don't have a content deliver network to show why people should come to your rural region, you might have a much more difficult time. If you're investing in major cities, you'll have an easier time with occupancy rates for STR for Airbnb, but will have be very cautious about the changing laws. I'd recommend either being in Italy for some time out the year, every year you have property here, or have someone physically here (like me!) who can monitor your investment closely.

I hope this provides some perspective on the situation here in Italy! I'm happy to answer any additional questions as best as I can.

Quote from @Jonathan Greene:

I like the way you are thinking, but it's a little apple before the cart although you seem to get that you need experienced partners to make this work. Right now, you may be looking at it as scalable, but assembling a team without a track record is hard because some may end up being leeches. If you are accredited, the best thing to do would be to invest 50k into a syndication and soak up all the knowledge of how it works from an experienced operator before you make the decision whether it's your plan. Lastly, always keep your job and build your employment foundation because that keeps you income relevant and lendable.

Hey thanks for your reply!
I'm not accredited, and unless my business explodes, it's not likely I will be in the next few years. This is the fork where I'm not sure if I'd be good to get some CRE exp and invest in learning about how to review deals for the next 2-3 years, or focus on generating revenue for investment purposes and watch how things are done as a LP.

My personality more aligns with networking, reaching out to people, connecting, navigating difficult situations and finding solutions that work. Collecting rent rolls, walking properties, learning who's doing the best in our sector/niche and how they're doing it, finding partners, all of these things I'm fairly good at, as I've been doing this for my recruiting agency for the past 3 years. The financial analysis side of CRE really excites me. I'm enjoy the challenges of finding creative solutions through the numbers and negotiating what can work for both the buyer and seller. 

Hey BP,

I'll be quick since I don't want to waste anyone's time. I've read many of the BiggerPockets books like 

- House Hacking
- Flipping
- Estimating Rehabs
- Multifamily Millionaire Book I and II
- How to Invest in Real Estate with Low or No Money Down
- Investing from a Distance
and even some outside of them

and have been wanting to do something in Real Estate for awhile. I've settled on wanting to do Commercial Real Estate Multifamily 20+ units, Class B, C in Texas or California. 

After reading Brandon and Brian's book, The Multifamily Millionaire, Volume II: Create Generational Wealth by Investing in Large Multifamily Real Estate, I'm a bit puzzled as to if the GP's must have real estate experience, or if someone can connect enough professionals/companies on their team to execute successful investments. Without a doubt, having more experience in the field is valuable. My questions is about opportunity cost. I own my own cybersecurity recruiting agency, and we made about $25k this month, (OpEx for recruiting agencies are low. Ours is like $100/month). Expectations are we hit at least $150k+ this year in revenue. Alternatively, I have spent the last decade doing technical work in cybersecurity, and can land a job between $140k-$190k (depending on where in the US). 

Is it better to have a job or business that is doing well, then funnel the money into larger projects, if my desire is to be one of the main GP for like 33-100 unit multifamily projects? I like the idea of getting a great deal, so should I take a pay cut, invest in getting my real estate's license, go the CCIM route, and find a broker to sponsor me until I'm a CRE broker and earn of the commission and get into bigger deals as a GP? (Will I even have time to do GP work if I'm at a brokerage?)

What's your experience? What have you seen done? What would you do if you could do it all over again? I'm 33, still young, and willing to do the hard work, cold calling, emails, etc. 

Your guys insights are very interesting. Much of my career for the last decade has been in Cybersecurity, and we feel the same about DOJ and regulations around incidents. 

Do you guys think there will be regulations that will be created around this that might affect those companies, or worse smaller businesses? And if so, what's the likelihood of enforcement? (Government will set cybersecurity standards, but then are rarely enforced).

As someone fascinated by the intersection of housing, technology, and fairness, I couldn’t ignore the Justice Department’s latest lawsuit against six of the largest landlords in the country. It’s not every day that accusations of rent manipulation make headlines, and I wanted to understand how this impacts the millions of Americans struggling with housing costs. So, I dove in.

The first thing that stood out to me was the scale of the issue. The Justice Department, backed by 10 states, claims these landlords—who manage over 1.3 million rental units across 43 states and D.C.—used algorithms and insider information to keep rents artificially high. Let that sink in. The very systems meant to streamline rental pricing may have been weaponized to squeeze even more from people already stretched thin.

It’s hard to ignore the context. In 2022, half of American renters spent over 30% of their income on rent and utilities, the highest percentage ever recorded. I’ve seen countless stories of families choosing between groceries and rent, or parents juggling eviction notices while trying to shield their children from the stress. It’s heartbreaking.

Connecting the Dots

My research led me to RealPage, a tech company at the center of this controversy. According to the Justice Department, RealPage’s algorithm allows landlords to align rents with their competitors by analyzing sensitive data, from renewal rates to occupancy trends. The result? Reduced competition and higher prices for renters.

RealPage, of course, denies this. A spokesperson argued their software only affects a small slice of the market and isn’t solely to blame for high rents. They pointed to housing shortages as the real villain. It’s a fair point—housing construction has lagged for years—but does that excuse using tech to potentially exploit renters?

The landlords aren’t staying silent either. Greystar Real Estate Partners, one of the defendants, released a public statement claiming they operate with “utmost integrity” and will vigorously fight the allegations. But the lawsuit reveals details that are hard to ignore: emails, phone calls, and even group meetings allegedly used to share strategies for keeping rents high. It’s a lot to unpack.

On the Ground Impact

As I dug deeper, I couldn’t stop thinking about the human impact. Families forced to uproot their lives, children experiencing the trauma of eviction, and homelessness rates breaking records year after year. Princeton University’s Eviction Lab estimates 1.5 million Americans face eviction annually. That’s a staggering number—and one that keeps climbing.

I came across a proposed settlement with one of the landlords already cooperating with prosecutors. If approved, it would limit how they use competitors' data and algorithms. It’s a start, but will it be enough to truly make a difference?

Why This Matters

This lawsuit feels like a turning point. The Justice Department’s acting assistant attorney general, Doha Mekki, put it bluntly: this case is about ending the practice of “putting profits over people.” That resonated with me. Housing isn’t just another commodity; it’s a basic need, and it’s disturbing to think of families losing homes while corporations chase higher margins.

For now, I’m left wondering what this case will reveal as it moves forward. Will it expose systemic greed, or will it shift the blame to other factors like housing shortages? Either way, it’s a stark reminder of how technology, when unchecked, can amplify inequality.

What Do You Think?

As I piece this all together, I can’t help but feel we’re standing at a crossroads. Will this lawsuit truly bring relief to renters, or is it just a Band-Aid on a much deeper wound? How do you think we can strike a balance between corporate innovation and human dignity in housing?

Hey everyone,

I’ve been diving into Chapter 1 of The Multifamily Millionaire, Volume II: Create Generational Wealth by Investing in Large Multifamily Real Estate by Brandon Turner and Brian Murray, and I wanted to share insights on one of the most important concepts: Crystal Clear Criteria (CCC).

When scaling up to larger multifamily investments, having clear and specific criteria is critical for success. This ensures you focus your time and resources on deals that align with your goals. Here’s what CCC looks like when applied to large multifamily properties:

Key Elements of CCC

1. Geographic Location

Define the regions or markets where you want to invest. Consider population trends, job growth, and economic stability in these areas.

2. Property Type

Understand the different types of multifamily properties:

• High-Rise: 9+ floors with an elevator, often urban.
• Mid-Rise: Smaller than high-rise, usually with elevators.
• Garden-Style: Low-rise apartments in suburban or rural settings.
• Walk-Up: 4–6 stories without elevators.
• Manufactured Housing Communities: Mobile home parks where land is leased to homeowners.
• Special-Purpose Housing:
  • Student Housing: Designed for college students.
  • Senior Housing: Dedicated to older adults.
  • Subsidized Housing: Affordable housing supported by rent and income restrictions.

3. Property Class

Properties are categorized by class, impacting their quality, condition, and investment profile:

• Class A: High-end, newly built, prime locations, attractive to institutional investors.
• Class B: Good quality, older than Class A, with minor deferred maintenance.
• Class C: Older properties with dated amenities, but value-add opportunities exist.
• Class D: Distressed properties in less desirable locations with high risks but potential for significant improvement.

4. Price Range

Define your financial boundaries based on available capital and borrowing ability:

• For Class A & B, financing typically covers 75%-80% of the purchase price, allowing you to buy properties in the $6M-$12M range if you have $2.3M total cash.
• For Class C & D, due to higher risk, the price range might be reduced to $5M-$10M with the same cash.

5. Size

Consider the number of units you’re targeting:

• Example: For Class C properties priced at $8M in a market where the per-unit cost averages $80K, you’d focus on properties with around 100 units.

6. Occupancy

Most lenders require a minimum occupancy rate of 85%. Properties below this threshold present additional risks and more limited borrowing options.

7. Target Returns

While target returns are crucial, these should be discussed only with investors—not brokers or others helping you find deals.

Sample Investment Criteria

Here’s an example of well-defined CCC:

• Location: Primary and secondary cities in the Southeast with population growth.
• Type & Class: Class C garden-style or walk-up workforce housing with repositioning opportunities.
• Age: 1980s construction or newer (case-by-case for older).
• Price: $5M–$12M, requiring $1.5M–$3M in funds.
• Size: 100+ units.
• Cap Rates: Market rates.
• Roof Type: Pitched roofs preferred.
• Value-Add: Opportunities for improvements or better management.

Why This Matters

By creating crystal clear criteria, you:

1. Avoid wasting time on deals that don’t align with your goals.
2. Build trust with brokers and partners by demonstrating a focused investment strategy.
3. Increase your chances of finding deals that meet your financial and operational objectives.

I'll be posting each chapter as I go through them so you can follow along from my notes and we can discuss different strategies. I'd also love to connect with you all.

And if you are already investing in commercial multifamily, what is your own investment criteria? I’d love to hear what you prioritize when evaluating multifamily deals. Thanks!