Investors often shy away from multi-family properties as they require a complex understanding of factors that don’t apply in many other real estate investment scenarios. AMRIK is well-known in the industry for creating profitable investments from buildings other developers overlook, and their unique acquisition assessment has led to profits of over 30% on buildings that were sitting untouched on the market. AMRIK utilizes a unique set of qualifiers to evaluate each opportunity.
Many developers get caught up looking for an opportunity in an up-and-coming area, which often leads to higher price points and decreased margins for investors. By looking at areas that are ripe for redevelopment, AMRIK can get ahead of the curve and capitalize on these neighbourhoods as the market shifts over time. The pro is great returns; however, investors do need to be prepared for a longer term to achieve optimal growth in this space.
There is a buyer for every market, absolutely. The thing is, not every buyer and every market line up just right. Sometimes creativity comes in handy, and that doesn’t need to mean a property redesign to appeal to a different market. Packaging matters, and one technique that has worked well for smaller multi-family units is actually extremely simple, and requires little to no upgrade capital. By looking for properties with several units available, then holding until all units can be acquired, the property becomes of interest to corporations who see value in purchasing the building as a whole for rental income versus simple residential resale.
The real estate markets are in constant motion. When working with investors, AMRIK recommends keeping a portfolio of properties that resonate with multiple demographic and psychographic groups. This tactic ensures long-term viability through the inevitable swings from buyers to seller’s market, as well as from city-centre to urban variations in population preferences. The key to AMRIK’s success strategy is to always maintain the ability to pivot along with the prevailing market, and they bring a keen eye for these movements to their investment clients and partners.
This element of AMRIK’s plan is one not shared by a large portion of the investor world. By creating strong connections with developers, real estate professionals, and investment groups, AMRIK is able to find patterns and properties that may not be publicly advertised. These strategic partnerships also allow them to look ahead and gather insight from multiple angles, so they can assess each property to find the best investment fit and future ROI.
Now, building management and financials are a standard piece of the due diligence process in real estate, regardless of whether a buyer or investor is looking at a single unit or the building as a whole. Where AMRIK assesses this a little bit differently is that in addition to looking at reserve funds and budgets, they also watch for properties that have healthy financials that could be adjusted slightly to improve the future plans, or where a small cash investment could yield a high return without the need for a special assessment, thereby improving the value and protecting unit owners.
This is a key aspect to thinking ahead and forecasting the future viability of a property. Cities regularly release forward looking plans that include data and information regarding how the city will grow. This type of forecasting is influenced by residents’ preferences for amenity-rich district nodes, distance to major nodes and access to transit, as well as strategic redevelopment of older areas to adjust to home styles and population expansion needs. These plans also include economic and job growth factors, which have a high correlation with the type and placement of housing required.
AMRIK brings this approach to all multi-family investments, and it is one that has been proven successful and scalable in various Canadian cities including Edmonton, Vancouver, and Toronto. AMRIK is always looking to grow a network of relationships with investment groups, brokerages, and developers to create partnerships that unlock the value of multi-family investment projects.