E279 Mike Flaherty - Multifamily Investment Growth Amidst Economic Uncertainties & Market Cycle Fluctuations With Systems, Tools, Resources; Mindset for Evaluating Investments & Scaling Your Portfolio

Elevate with Tyler Chesser - The Real Estate Podcast for Investing, Mindset and Personal Development

Do you have what it takes to succeed in multifamily investing? Multifamily syndication is beyond just buying apartment buildings and then selling them at a profit. If you want a successful and profitable multifamily business beyond a business venture that simply manages to survive, then you have to learn the crucial factors that make the difference. Given the current economic uncertainties and market cycle fluctuations, it’s imperative to learn the dynamic forces at work and be able to use them to your advantage and grow your investment.

Mike Flaherty, founder and managing partner of L5 Real Estate Investments, joins us today to help us understand the systems, tools, and resources that multifamily syndicators can leverage to scale up your business amidst changing economic and market conditions. Find out how Mike navigates challenges in every aspect of syndication as he grows his portfolio. Learn what mindset to adopt as you evaluate potential deals and discover how he mitigates risks and seizes opportunities in multifamily investing while avoiding analysis paralysis. Hear his economic and real estate forecast for 2023 and know what pitfalls to avoid. All these and much more to learn in today’s episode.

Key Points from This Episode:

• What happened to Mike’s real estate business in the past two years during the Covid pandemic?
• Mike talks about buying and scaling during the pandemic and why the current conditions are more challenging for his business.
• Mike’s outlook on the economy and multifamily real estate investing for 2023.
• Is Mike expecting a light or mild recession?
• How does Mike apply his analytical and engineering mindset in running his real estate business?
• Pitfalls to avoid and lessons Mike learned from mistakes made in due diligence
• Mike’s advice on establishing systems to mitigate risks and seize opportunities in multifamily investing.
• In deal acquisition, how can you avoid analysis paralysis while performing due diligence with stringent buying criteria?
• The biggest lesson Mike has learned about asset management
• Team, tools, technology and resources needed to scale a multifamily investment business
• How Mike manages team accountability
• Mike’s projections about property insurance and taxes
• How Mike navigates market cycle fluctuations
• Tailwinds and potential hidden risks in multifamily investing
• How is Mike investing in himself these days?

Tweetables:

“Success is a function of doing the right thing over a long period of time.”

“The key to making good smart prudent investments really comes down to due diligence, and understanding the rights and the wrongs and the pitfalls of where you could have some problems.”

“Developing relationships with key people and companies can really help save you a lot of time, money and headaches over the long haul.”

“You can never fall in love with your real estate deal.”

“People say you make money on the buy, but you make money by performing on the buy.”

“You're always off track somewhere and you're always on track somewhere else.”

“Continue to listen, learn, read, and be prepared. The more prepared you are, the more often you'll make a great decision on buying a great investment.”

Links Mentioned:

L5 Investments

Real Page

Juniper Square

Invest with CF Capital

About Mike Flaherty

Michael Flaherty is the Founder and Managing Partner of L5 Real Estate Investments. Throughout his career, Mike has been involved in the ownership, development and entitlements of over 200+ nationwide commercial and residential properties valued at over $1 billion in total – including multi-family, resort, hospitality, office, retail and large master-planned residential communities. His passion for multi-family investment performance is based on his niche for detailed due diligence, market analysis and acquisition of value-add opportunities.

Prior to founding L5, Mike was a partner with Cardinal Real Investments where the focus was on the astute repositioning and development of residential and commercial in Los Angeles and New York City. Mike also managed British Petroleum’s (BP) zoning and real estate development platform for Bovis Lend Lease, one of the world’s largest real estate development, project management, and construction companies. Prior to Mike’s work in the multi-family and commercial real estate industry, he managed numerous high-volume residential and master-planned developments for Toll Brothers, Inc., the nation’s largest developer and builder of luxury homes.

Mike earned a B.S. in Civil Engineering from Villanova University and an M.B.A. from the University of Southern California. Additionally, he is a Board Member of Kids Helping Kids and Advisor to the Board for Mychal’s Learning Place, a non-profit organization focused on assisting children with developmental disabilities and low-income children in local communities and worldwide.