Multifamily Investement Mentor and Partner
Multifamily real estate presents a distinctive and appealing investment opportunity within the realm of investment choices. It offers inherent advantages, such as low risk due to the universal need for shelter, tax depreciation benefits, passive cashflow, and the potential for capital appreciation. These factors combine to make it an attractive investment option.
Meet Robert at Home
Family means different things to different people. For me, it’s my wife and two children. As a husband and father, I’m driven to grow both personally and professionally, striving to be the best version of myself for them.
In both business and life, I adhere to a principled approach that is rooted in fairness, commitment, and thoughtful intent. I firmly believe that each of us possesses an innate instinct that guides us towards making the right choices. However, I recognize that it can be especially challenging to do when faced with adversity. I take great pride in my ability to uphold integrity and do the right thing even in the most challenging circumstances.
I am motivated by a purpose that transcends personal gain. I actively seek individuals whose interests align with mine and pursue opportunities that enhance the well-being of all involved. This process commences with collaborating closely with clients and investment partners to attain the best possible economic outcomes. While prioritizing profitability, I ensure the well-being of my family and, whenever possible, empower those less fortunate with avenues for growth.
With over 30 years of experience in multifamily real estate investment, I have a unique understanding of the challenges healthcare professionals face—thanks in part to family members in the medical field. From the demands of medical school to the start of a medical career, I’m familiar with the lifestyle and financial pressures that come with it.
This insight, combined with my investment expertise, enables me to help healthcare professionals enhance their income potential through real estate. By leveraging steady cash flow, tax benefits like depreciation, and strategically structured investments, we create opportunities for capital appreciation while maintaining optimal risk-adjusted returns.
Real estate offers a pathway to passive income and financial freedom, providing security beyond reliance on W-2 income. My goal is to empower medical professionals to build a sustainable financial future through diversification, tax-efficient income, and a strategic approach to real estate investment. With a deep respect for the healthcare profession, I’m committed to guiding professionals in integrating real estate into their portfolios to maximize their financial growth.
Foundational Knowledge
Sauder School of Business
Bachelor of Commerce
Major – Urban Land Economics
Minor – Finance
1986 – 1990
Professional Trajectory
NOTE:
90% or more of my business activity has been in multi-family real estate.
Acquisition Agent
Sourced land for Multi-family Development
1991 - 1995
Senior Investment Broker
Multi-family Investment Sales
1995 - 2002
Founder/Managing Director
Active Broker
1995 - 2022
Founder/Managing Director Oversee Property Management Team
2004 - PRESENT
Founder/Managing Director
Project Managed Heavy Renovations and New Ground Up Construction
2006 - PRESENT
Founder/Managing Director
Oversee Asset Management Team
2011 - PRESENT
Founder/Managing
Director Oversee Investment Program
2019 - PRESENT
Foundation of Knowledge
Throughout the course of my education, I cultivated a comprehensive base of understanding in real estate valuation, examining the progression of metropolitan areas and the corresponding effects of their expansion or contraction on property value, and a substantive understanding of financing.
In my inaugural professional role, I acquired proficiency in determining the value of undeveloped land through capital construction residual analysis, concurrently developing my negotiating skills.
As I transitioned into the role of a multifamily broker, I mastered the intricacies of listing and marketing properties, steering negotiations with finesse, how to conduct thorough due diligence, and successfully navigating the complexities of the closing process.
As a general partner, I oversaw my first three syndications with friends and family, two of which were highly successful, while the third encountered the challenging headwinds of the dot.com downturn. This experience proved to be an invaluable education: despite investing $10,000 per unit for renovations in anticipation of a $200 monthly rent increase, market demand tapered, limiting us to a modest $25 increase. Over the four-year tenure, we did not observe any positive cash flow, yet achieved an 18% internal rate of return due to cap rate compression. This venture, despite its hurdles, opened my eyes to the pivotal factors that influence broader market dynamics.
I founded and led a brokerage firm specializing in the sale of apartment buildings. Recognizing the demands of managing our own assets, we established a property management firm to handle our portfolio and provide third-party fee management services.
Continuing as a general partner, I successfully executed three additional syndication projects with friends and family, yielding positive outcomes. However, the last venture coincided with the impact of the great recession, necessitating a pivot in our plans. We temporarily suspended renovation efforts, navigated the market challenges, and resumed our project in 2012 when the economy showed signs of recovery.
I embarked on establishing our asset management firm during the tumultuous period of the great recession, when the real estate market faced significant challenges. To overcome our own lack of opportunities, we strategically offered an integrated suite of services that included brokerage, asset management, construction, and property management, to regional banks burdened with extensive portfolios of real estate owned (REO) properties.
Between2010 and 2014, we successfully brokered, asset managed, project managed, and/or property managed a total of 246 properties on behalf of these banks.
As the REO work dwindled, our focus shifted back to specializing in brokering and managing larger multifamily apartment properties, while concurrently exploring development opportunities.
We transitioned away from friends and family syndication of smaller apartments, redirected our efforts towards ground-up single-family construction. Building three new homes proved to be profitable but encountered the challenges of competing with national homebuilders. Their dominance in securing the best vendors due to the amount of work they can offer compared to an independent builder like us proved challenging.
A mentor imparted valuable advice, highlighting the importance of sticking to our area of expertise, namely apartments, and encouraged us to work towards the goal of syndicating apartments and possibly down the road building them with the idea our efforts would be rewarded with long terms capital gains tax treatment versus dealer personal income tax treatment for single family.
With this guidance in mind, we made the decision to close our construction firm, with the intent of restructuring as a developer of multifamily properties if the opportunity presents in the future.
Until 2022, I actively worked as a broker until shifts in the market led me to plan a strategic exit from brokerage to become a general partner and deal sponsor.
Our portfolio of multi-family property management has seen growth, we now offer our services in eight states.
I established a capital management firm during this period.
The advent of Covid-19 shifted my focus to my family's needs. With our children engaged in remote schooling for 18 months and my wife's in-person clinical obligations, I assumed the primary parenting role during school hours which limited my ability to advance the capital management firm.
Drawing on previous experience, by 2021 I recognized that the market was excessively heated, leading to the conclusion that it was inadvisable to make new acquisitions,
As we enter 2024, I believe the market has hit its bottom. The upcoming 5 to 10 years present a prime opportunity for individuals aged 40 to 60 to build independent wealth through rental apartment real estate. I am resolved to leverage my experience to capitalize in this window.
With my wife's transition to remote work and our children's increased independence, I have the necessary time and flexibility to make this happen.
My investment philosophy is anchored around attaining steady cash flow, in markets with projected sustainable growth and a focus on risk mitigation. I approach each asset as a distinct opportunity, evaluating it based on a set of fundamental considerations.
Market Research and Analysis
I am dedicated to extensive market research and demographic analysis, ensuring that any property I consider is situated in an area of enduring growth.
Risk Management
I manage risk through selective acquisition criteria, diligent underwriting, and stress-testing potential investments against various economic shifts.
Value Creation Opportunity
Where it makes sense, I seek to identify properties with value-add opportunity. I want to be able to grow capital through renovation or operational improvement.
Tenant Evaluation
It is essential for the tenant profile to align with the property’s asset class to avoid potential issues.
Vendor Management
Relationships with the right vendors are vital.
Fiscal Responsibility
I am committed to maintaining firm fiscal oversight, with performance metrics regularly reviewed against our short and long-term financial goals.
Long-term Perspective
My approach to multifamily investment is long-term, with an emphasis on enhancing cash flow, aiming to facilitate the transition for our investors from active W-2 Income to passive real estate earnings. We remain poised to capitalize on any significant short-term appreciation opportunities, while steadfastly adhering to our long-term strategy in their absence.
Transparency
I believe in maintaining open lines of communication with our investors, providing regular reporting updates on property performance, market conditions, and strategic initiatives.
My philosophy centers on creating value for our investors through careful selection, management, and improvement of multifamily rental properties in the path of growth.
Unlock Your Path to Real Estate Success
I can help you create alternate passive income from real estate that will eventually replace your W-2 income. This will allow you to maintain your lifestyle well into retirement.
© 2024 Robert Parmar. All Rights Reserved.
