Are you ready to elevate your multifamily real estate game? Whether you’re just starting out or you’re an experienced investor looking to sharpen your skills, these 10 lessons will provide you with the insights and strategies to help you avoid costly mistakes and build a lasting legacy. These lessons are hard-earned, based on years of experience, sleepless nights, and real-world challenges. Let’s dive in!
Lesson 1: Relationships Over Transactions
The foundation of success in multifamily real estate is relationships. Your network—brokers, investors, property managers, and other key players—is more valuable than any single transaction. Focus on building trust and fostering long-term connections. A great example? I’ve closed multiple deals with the same contact, all because we nurtured a relationship rather than focusing on a one-time gain. Remember, relationships can create opportunities that last a lifetime.
Lesson 2: Underwriting Is a Skill, Not a Shortcut
Underwriting is the backbone of any successful deal. It’s more than plugging numbers into a spreadsheet—it’s about understanding the details. Look at the rent roll, analyze the T12, and verify occupancy trends. Don’t underestimate expenses like insurance, taxes, and maintenance. A common mistake? Overpaying for “loss to lease” before you’ve actually captured it. Take the time to develop your underwriting skills and ensure your deals make sense in the current market.
Lesson 3: Your Team Is Everything
Multifamily investing isn’t a solo sport. Surround yourself with the right people—mentors, property managers, attorneys, partners, and local experts. A strong team ensures you can manage CapEx projects, navigate legal challenges, and scale your business. Trying to do everything yourself will only lead to burnout and limit your growth potential.
Lesson 4: Focus on One Market
Don’t spread yourself too thin by trying to master multiple markets. Choose one market and go deep. Learn the local trends, build relationships with brokers, and become the go-to expert in that area. Whether you’re drawn to a market for its population growth or economic potential, consistency and focus are key.
Lesson 5: Never Skip the Basics
Due diligence isn’t optional—it’s essential. From lease audits to property inspections, every detail matters. Understand the property’s financials and deferred maintenance. Know what you’re walking into, so you can build a realistic CapEx budget and avoid surprises. Thorough due diligence protects your investment and sets you up for success.
Lesson 6: Embrace the Long Game
Multifamily investing isn’t about quick wins. It’s about creating sustainable cash flow and long-term appreciation. Avoid chasing acquisition fees or flipping properties too quickly. Instead, focus on holding properties for 5-10 years to maximize returns through appreciation, cash flow, and loan principal reduction.
Lesson 7: Systems Make You Scalable
To scale your business, you need systems. Tools like Asana, AppFolio, and standard operating procedures (SOPs) will help you stay organized and delegate tasks. If you’re just starting out, don’t stress about having it all figured out—you’ll develop your systems as you grow. The key is to automate and delegate wherever possible.
Lesson 8: Learn From Losses
Every investor has experienced setbacks. I lost $60,000 on a deal early in my career, but it taught me invaluable lessons about preparation and team dynamics. Don’t let fear of failure hold you back. Learn from every experience and use it as a stepping stone toward future success.
Lesson 9: Treat Tenants Like Customers
Happy tenants are the secret to lower turnover and higher profits. Listen to their needs, respond to maintenance requests promptly, and create a sense of community. Reducing turnover saves you money on renovations, vacancies, and leasing fees. Even small gestures, like a gift card during a tough time, can make a big difference.
Lesson 10: Build More Than Wealth—Build a Legacy
Multifamily investing is about more than making money—it’s about creating a legacy. By building businesses through your properties, you’re setting an example for your family and creating something that can benefit future generations. Focus on long-term impact, not just short-term gains.
Take Action Today
Which of these lessons resonates most with you? Whether it’s networking, underwriting, or developing systems, take one actionable step today to sharpen your small axe. Remember, small axes build lasting empires.
💡 Join the Small Axe Community: Visit SmallAxeCommunities.com for tools, resources, and courses to help you on your multifamily investing journey. Let’s connect and grow together!
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