Find Good People. It’s still very important for executives to surround themselves with competent, trustworthy people, whether they are partners, employees, consultants, or property managers.
Manage Your Costs. One way executives can be successful is by controlling development and overhead costs. While there are some market factors that can’t be controlled, expenses are one thing that can be.
Don’t Have Too Little Capital. New companies need to have three years of capital on hand so that they will not be so starved for money that they’ll have to make bad deals.
Don’t Leap Without Looking. Before making any deals, make sure they are right for the company. Often times, newer companies have less margin for error than mature ones.
Don’t Get Overloaded with Work. With an office to run and deals to make, the demands on a small business owner can be burdensome. It’s important to prioritize and focus on what produces revenue.
Don’t Go at it Alone. Everyone has a weakness or areas that they aren’t an expert. Instead of jumping into something they’re not familiar with and putting a business at stake, it’s best for executives to look for outside help.
Don’t Go In At the Top of the Cycle. Most multifamily executives interviewed said they chose to go in at a lower point of the economic cycle, when multifamily property prices were low.
