Controllable and Non-Controllable Decisions as a Multifamily Investor

One of the best skills an investor can have is recognizing what they can control and what they can't and making decisions based on that to navigate risk.

Controllables I've Observed:

1. The desision on selecting the loan term length

2. Asset class selection and knowing the potential risks of each asset class. This includes preparing for unexpected capex expenses

3. The size of the deal

4. Which location to select

5. Which partners to choose

6. The way the debt and equity is set up

7. The amount of leverage used

8. Understanding accounting and how to thoroughly read financials and recognize inflated numbers or tricks

9. Improvements / changes to the property to raise rents

Uncontrollables I've Observed:

1. Interest rates

2. Incorrect data on official market surveys

3. Market cycles

4. Expenses such as taxes and insurance

5. Rental rates in the market