The Risks Of Multifamily Investments | Drew Breneman’s Appearance On My Freedom Foundry With Paul Thompson - E105
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Navigating the multifamily real estate market can be daunting, with potential investors often feeling apprehensive about the risks involved. Concerns about vacancy rates, tenant turnover, and the complexities of managing multiple units can create significant anxiety. Without a clear understanding of risk management and the nuances of multifamily investments, entering this market might seem fraught with uncertainties. This episode features Drew Breneman’s appearance on My Freedom Foundry (now called The Wake Up Call) with Paul Thompson, where Drew provides a roadmap to help you identify and mitigate these risks, offering practical advice and insights to build a solid foundation in multifamily real estate while maximizing returns and minimizing potential pitfalls.
“You might lose money because… the downside risks are so much higher for the slightly incremental upside.” - Drew Breneman
In this episode you will learn:
- The benefits of loan assumption deals on new commercial properties, especially in terms of favorable interest rates and yield maintenance prepayment penalties.
- Comparative risk profiles between commercial and multifamily properties, focusing on vacancy rates and tenant turnover.
- The significance of building wealth through long-term real estate investments, with an emphasis on equity multiples over short-term IRR gains.
- Strategies and advice for breaking into real estate investment, including starting with savings, making sacrifices, and gradually moving to larger investments.
- The importance of understanding and mitigating risks in real estate deals, and the potential pitfalls of prioritizing higher return deals without fully accounting for the risks involved.
Resources
- Listen to the original episode: https://podcasts.apple.com/us/podcast/succeeding-in-the-competitive-world-of/id1343930864?i=1000611446472
This podcast was produced by the team at Zapods Podcast Agency:
https://www.zapods.com
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Breneman Capital: https://www.breneman.com
Investor List: https://www.breneman.com/invest
Passive RE Investor Guidebook: https://www.breneman.com/downloads
Connect with Drew on LinkedIn: https://www.linkedin.com/in/drewbreneman
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