We get asked periodically why we like this asset class.
The short answer is easy: it generates the best risk-adjusted returns. Not just among real estate, but among any asset class.
Of course, I can’t really prove that, just like nobody can prove that any other asset gives better risk-adjusted returns than multifamily real estate. But let me try to explain why we view the risk as very tolerable, and even low, for the returns we generate:
1. Straightforward to underwrite* (both for buyer and lender): it’s pretty tough to get acquisition costs, operating expenses, and rental incomes so wrong that a dea