Updated: Oct 14, 2018
Over the weekend I attended Rod Khleif's Multifamily Bootcamp in Chicago. I have been following Rod since early 2016 when he began his podcast, Lifetime Cashflow through Real Estate Investing. It was an absolute blast and the quality of the content and networking was second to none. Rod has a deep passion for educating others in this business that is derived from over 40 years of experience.
Throughout the conference we had opportunities to network with the other attendees. The first thing everyone wants to know, including myself, is "How many units (apartments) do you own?". We want to know at what level our counterpart is playing. It helps you to decide whether or not you should be asking for and accepting advice from the individual you are speaking with. Scale is everything in this business and it takes a different skill set and perseverance to manage a duplex than a 100-unit complex or a 3000-unit portfolio.
What concerns me is when we begin to rain public praise and awards on folks for simply acquiring more property. Don't get me wrong, I understand taking action is super important and critical for those just getting started. But at this high point in the real estate market, our worship of the unit count could drive us into making fatal mistakes as we pursue what I call "me to-ism". I advocate that we begin to ask more questions to assess someone's skill set and determination. For instance, "What is your purchase criteria?", "How may offers are you submitting?" and "What sort of returns are you looking for?".
Let's worship the bad deals that we were outbid on and count the number of units offered on but lost to the overzealous. Tomorrow, they'll be begging us to make that offer again... As Rod reiterates time and time again... keep your powder dry.