The Power of Having Direct Control over Apartment Investing - Multifamily Commercial Real Estate
With Percy Nikora, Co-Founder
The reason I like multifamily as an asset class, again, compared to whether you're looking at other commercial real estate, or even stocks, bonds, et cetera ... One, it's a physical asset. There's something to be said about an asset you can go up to touch, and feel, et cetera. Two, it's a asset in which you can- you can actively manage and have a effect on the overall price. What I mean by that is being able to operate it in a fashion or make improvements to the property that increase the net operating income.
Since the value of multifamily is based on a multiple of the net operating income, you're really driving the value or, sometimes, it's called forced appreciation, where you're forcing the value of the asset. That's somewhat unique in this asset class versus a stock that you may buy. You really don't have any control over that. Even some of the other commercial asset- or single-family houses you buy, you may not have that direct level of control that you have on something like multifamily. The other benefit-
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