With a background as an attorney negotiating bank contracts, Ellie Perlman knew she wanted to be on the other side of the transactions. As she sought fulfillment, she recalled watching her business school classmates raise $50 million. This lit the path for her next move into multifamily investing. Today, Ellie is the founder and CEO of Blue Lake Capital and controls over 2,000 units worth over $200MM. On this episode, she talks about her finding her path, selecting markets for multifamily and making conservative assumptions.
Partner: Get Your Early Bird Tickets to the Midwest Real Estate Networking Summit
Key Market Insights
Worked as property manager in Israel
Moved to the U.S. from Tel Aviv
Motivated by passion, was missing a lot of the action
Went to business school at MIT
Worked on 150-page contracts, negotiating with banks
Classmates raised over $50 million for a project
Like Texas and Florida due to population growth, two states with highest internal migration
Dallas added over 100,000 jobs in the last 12 months
Things Ellie Looks for in a market for multifamily: population, job and rent growth, landlord-friendly state
25-30 mins away from downtown in hot markets
Looking at single family home prices, need a gap between rents and mortgage payments
Assume a refinance in 18-24 months to return a portion of the investment, but does not include in modeling
Organic rent growth assumed at 2%, even where there is actually 5% growth
Exit cap rate, assumes 50 basis points (0.50%) increase
Working on a passive investor program
Partner: Be sure to check out the #InvestThis Podcast with Scott Bower
Bull’s Eye Tips:
Winning Your Market: Build super strong relationships with brokers
Tracking Market Changes: Reading reports, visiting and talking to brokers
Daily Habit: First 4 hours of the day for most important thing
Resources:
Best Business Books:
Am I Being Too Subtle by Sam Zell
Digital Resources
Tweet This:
“Texas and Florida have the highest internal migration”
“Looking at single family home prices, need a gap between rents and mortgage payments”
Places to Grab a Bite:
Connect with Ellie:
Website: Ellieperlman.com
Email: ellie@ellieperlman.com
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