On December 5th of 2024, we had the privilege of diving into the fascinating world of multifamily real estate with none other than Jon Brandon—a seasoned investor and operator with years of hands-on experience transforming properties and navigating the dynamic market.
Our discussion wasn’t just about the wins; it was a candid look at the challenges, strategies, and lessons learned along the way.
Here are some key takeaways from Jon’s episode that shed light on the intricate, yet rewarding, world of multifamily investments:
Turning Around Underperforming Properties
Jon’s insights into property turnarounds were both inspiring and practical. He shared a story of a property where rents started below $500 per unit. Through strategic improvements and effective management, rents doubled in just 18 months, hitting a minimum of $985 per unit.
The process wasn’t without its hurdles—tenants had to be transitioned, renovations managed, and financing secured. But the result? A thriving property with a higher valuation, proving the incredible potential of multifamily real estate when approached with the right strategy.
Adapting to Rising Interest Rates
The current real estate climate isn’t for the faint of heart. Jon spoke candidly about dealing with interest rates that have skyrocketed from 4% to over 10% in some cases. These shifts make financing deals and maintaining cash flow more challenging than ever.
His advice? Be ready to adapt. He emphasized the importance of creative financing options, such as cash-out refinancing, pausing non-essential renovations, and exploring agency loans to secure more favorable terms.
Understanding the Multifamily Tiers
One of the most insightful parts of our conversation was Jon’s breakdown of multifamily property tiers:
Small Multi (2–20 Units): Often managed by individual investors, these properties provide steady cash flow and less competition.
Mid Multi (20–99 Units): A sweet spot for investors, offering scalability without intense institutional competition.
Large Multi (100+ Units): High competition from institutional buyers, but with potential for significant rewards if navigated well.
Jon stressed the value of mid-sized properties, where operational improvements and strategic management can yield exceptional returns.
Spotting Opportunities in Legacy Properties
Jon’s knack for spotting hidden gems was on full display as he shared his experience acquiring a 96-unit Jacksonville property. The property had been inherited by owners unfamiliar with property management, leading to neglect and inefficiency.
Through proactive management and strategic upgrades, Jon turned the property into a high-performing asset. His story highlighted how staying vigilant for unique opportunities—like mismanaged legacy properties—can pay off immensely.
Creative Strategies for Raising Capital
For many investors, raising capital can feel like the toughest part of the process. Jon acknowledged this and shared practical strategies to make it less daunting. Instead of directly asking for investments, he recommends:
Storytelling: Share success stories and lessons learned to build credibility and intrigue.
Leveraging Platforms: Use LinkedIn and other professional networks to showcase projects and attract interest.
Soft Asks: Engage people with your journey, letting them come to you instead of making hard pitches.
Jon’s emphasis on authenticity and consistency in sharing updates resonated deeply.
A Reminder: Deals Are Always Out There
Perhaps one of the most encouraging takeaways was Jon’s reassurance that opportunities are abundant. Life events, mismanagement, and economic shifts constantly create new possibilities in real estate. The key? Patience, persistence, and a keen eye for value.
Final Thoughts
Jon Brandon’s journey in multifamily real estate is a testament to the power of adaptability, strategic thinking, and perseverance. His approach to turning around properties, raising capital, and navigating market challenges offers a blueprint for aspiring and seasoned investors alike.
If there’s one thing I learned from this episode, it’s this: multifamily investing is a marathon, not a sprint. Success comes to those who are willing to embrace the challenges, learn from the process, and remain committed to growth.
Be sure to catch Jon’s full episode for more in-depth strategies and stories. Click the button below for the YouTube video of this episode—you won’t want to miss it!
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