Insights

The Benefits of Patient Investing

Moorpark, California | June 21, 2024

In real estate investing, patience is more than just a virtue — it's essential.

Real estate is a journey best traveled with a long-term perspective. It's not about quick profits; it's about steadily building wealth through thoughtful, strategic investments.

A Success Story Memory
From 2012-2013, our due diligence team spent time conducting thorough market research throughout Houston, Texas. Our exploration yielded a few potential acquisitions. In late 2013, we narrowed in on a prime property in a developing neighborhood and waited for the perfect pricing opportunity to move forward.

Barcelona Apartments [photo]
Entrance to the main office at Barcelona Apartments creates a welcome feel.

Our patience was rewarded. We secured Barcelona Apartments in December of 2013 at an advantageous price. Rental rates at Barcelona were flat for the prior three years, while market rents were increasing 2.5-5% annually. Aii executed a meticulous renovation plan to bring rents up and enhance the property's value. During our ownership, the NOI increased from $564,605 to $707,350, or 25.3%. The result was a 1.8x equity multiple for our investors. This success wasn't due to luck but rather years of experience and a steadfast commitment to Aii's investment principles, which emphasize patience and persistence. You can view the case study here.

The Benefits of Patient Investing

  1. Market Resilience: Patience enables you to endure market fluctuations without succumbing to panic. Instead of reacting impulsively, you can remain steady, confident that your decisions are well-informed and grounded in thorough research.
  2. Sustained Growth: Patient investing allows your investments to mature and increase in value over time. It's not about immediate returns but about establishing a foundation for long-term prosperity and financial stability.

At Aii, we prioritize patience in our real estate investment approach. We avoid short-term schemes and quick fixes. Instead, we focus on carefully evaluating each opportunity and creating strategies tailored to our long-term goals.

If you're interested in a patient and disciplined approach to real estate investing, we are here to assist you. Let's discuss how we can collaborate to build a resilient and successful investment portfolio.

About Apartment Income Investors
Founded in 1994, Apartment Income Investors (Aii) has a proven track record of buying underperforming Class B multifamily and commercial properties and implementing renovation and repositioning strategies to improve operations and substantially increase the value of each property. This strategy has proven successful through several real estate cycles with above-average returns to investors. The company's goal is to transform homes, lives and communities while delivering superior investment returns.

For more information, please visit www.aiiproperties.com or contact Michael Chesser at 805.604.2644 | mchesser@aiiproperties.com.