If somebody’s just looking to invest passively, and they’re not looking to do real estate investing as a full-time job, I think they owe it to themselves and their families to really look into alternative investments [like multifamily.]”
JORGEABREU
The company’s strong relationships and communication with residents was a boon last year during the Covid-19 crisis and the ensuing eviction moratorium, Abreu said. Elevate was able to create systems for rent relief and help residents understand what they needed to do in order to receive it. The proactive approach led to minimal disrup- tion, he said. “Income-wise and vacancy-wise, it really did not disrupt our business plans, but we did have to be flexible and learn quickly and adapt,” he said. Elevate took the same proactive communication approach with its investors during the turbulent time. Before the pandemic, Abreu said, the team would send updates to investors either monthly or quarterly, depend- ing on the property. To keep them abreast of changes during the pandemic, Elevate shifted to weekly updates covering delinquencies, vacancies and additional infor- mation as the situation changed. “You never want to keep anybody guessing,” he said. Though some distributions were temporarily put on hold to see how the situation would play out, Abreu said investors were supportive and understanding. He sees Elevate’s communication with investors as one of its key differentiators. When he began investing passively, he saw a wide range of approaches to investor relations. “Something I noticed was the lack of communication and the lack of transparency on some of these deals,” he said. “So my goal really has been to make the investors feel more like they’re part of the deal.” To do that, he said Elevate sends a packet to each investor for each property including a binder with the
important information, such as property descriptions, distributions and taxes, plus “trinkets” that will make investors feel more a part of the process. Elevate also hosts property tours, which is rare in the industry, he said. Ongoing communications include photos and videos showing progress and community events. The goal is “really showing them how the deal is looking and what their investment has done for that property,” he said. EDUCATING OTHERS Abreu’s desire to stand out and communicate manifests on Elevate’s website in a substantial education section, which includes an e-book, a checklist for deal sponsors, and dozens of recommendations for reading, from multi- family investing to personal development and more. “Multifamily investing—nobody teaches you that,” he said. “Growing up, everybody kind of knows about your retirement funds and your 401(k)s and stocks. But nobody really teaches about the alternative investments.” Abreu has learned from research and experience about the benefits of real estate investing, particularly mul - tifamily investing. Considering the returns and the tax benefits, “I think there’s no competition” with traditional investments. “If somebody’s just looking to invest passively, and they’re not looking to do real estate investing as a full- time job, I think they owe it to themselves and their families to really look into alternative investments—main- ly, I think, multifamily,” he said. “There’s just so many positives to it, and it really helps you get ahead. Most
20 | think realty magazine :: november 2021
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