There’s a great quote by Charlie Munger, the vice-chairman of Berkshire Hathaway, about increasing the odds of your success.
Charlie Munger and Warren Buffett have amassed quite the fortune over the years using a specific investing strategy. Today I want to share one of our own investing strategies with you.
One of the unique investment strategies in multifamily real estate is called “FORCED APPRECIATION.”
When you buy any asset, you obviously want the asset’s value to increase. Most of the time, investors are left at the mercy of the market and are forced to watch their net worth riding a financial roller coaster.
But what if you could get off the roller coaster onto the fast track and directly influence the value?
Remember, your apartment complex’s value is directly linked to its net operating income. If you increase the net operating income, the value of your investment rises, which allows you to make a substantially greater return on a consistent and more predictable basis.
Leveraging forced appreciation is one of the ways we “drain the barrel first” at DMI Holdings.
In multifamily investing, you have much more control over the value of your investment because you can directly impact the asset value by increasing revenues and/or decreasing expenses.
An experienced multifamily operator will apply some very specific strategies that “force the value to increase” by:
Unfortunately, not all investing partners are created equally. Therefore we have taken all the precise steps to ensure your investment will be managed professionally, protected and nurtured for maximum cash flow & increased value!