Hedge Fund Manager Tips on Apartment Investing

Lesson #1. Don’t wait for the markets to crash. You won’t have an establish track record to get access to deals and capital if you’ve not established it in boom markets. Always be buying apartments.

Lesson #2. Don’t trust look at price and the cap rate. Rather ask yourself, “Will I lose money on this acquisition?”

“What could go wrong on this acquisition that could cause me to lose money?”

“How do I exit from this property?”

“What is the employment market?”

“Is this property cash flowing when the numbers are calculated properly?”

“What value add can I add to this property?”

“Is this property in a great location?”

Lesson #3. Be skeptical of foreclosure properties. If a property failed once, it might be likely to fail again. Buy great properties in great location with great cash flow in great job markets. Again, don’t focus on price or cap rate.

Lesson #4: Look at 100 properties to buy 1 property.

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