• John Casmon

Key Factors for Multifamily Investing with Ellie Perlman, Episode 93


With a background as an attorney negotiating bank contracts, Ellie Perlman knew she wanted to be on the other side of the transactions. As she sought fulfillment, she recalled watching her business school classmates raise $50 million. This lit the path for her next move into multifamily investing. Today, Ellie is the founder and CEO of Blue Lake Capital and controls over 2,000 units worth over $200MM. On this episode, she talks about her finding her path, selecting markets for multifamily and making conservative assumptions.

Partner: Get Your Early Bird Tickets to the Midwest Real Estate Networking Summit

Key Market Insights

  • Worked as property manager in Israel

  • Moved to the U.S. from Tel Aviv

  • Motivated by passion, was missing a lot of the action

  • Went to business school at MIT

  • Worked on 150-page contracts, negotiating with banks

  • Classmates raised over $50 million for a project

  • Like Texas and Florida due to population growth, two states with highest internal migration

  • Dallas added over 100,000 jobs in the last 12 months

  • Things Ellie Looks for in a market for multifamily: population, job and rent growth, landlord-friendly state

  • 25-30 mins away from downtown in hot markets

  • Looking at single family home prices, need a gap between rents and mortgage payments

  • Assume a refinance in 18-24 months to return a portion of the investment, but does not include in modeling

  • Organic rent growth assumed at 2%, even where there is actually 5% growth

  • Exit cap rate, assumes 50 basis points (0.50%) increase

  • Working on a passive investor program

Partner: Be sure to check out the #InvestThis Podcast with Scott Bower

Bull’s Eye Tips:

Winning Your Market: Build super strong relationships with brokers

Tracking Market Changes: Reading reports, visiting and talking to brokers

Daily Habit: First 4 hours of the day for most important thing

Resources:

That REllie Happened?! Podcast

Best Business Books:

Am I Being Too Subtle by Sam Zell

Digital Resources

Contactually

Airtable

Tweet This:

“Texas and Florida have the highest internal migration”

“Looking at single family home prices, need a gap between rents and mortgage payments”

Places to Grab a Bite:

True Food Kitchen

Connect with Ellie:

Website: Ellieperlman.com

Email: ellie@ellieperlman.com

Leave us a review and rating on iTunes or Stitcher. Be sure to check out more info at TargetMarketInsights.com.