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EP 220: Scaling Up: The Strategies of a Vertically Integrated Multifamily Powerhouse with Michael Root
Manage episode 523281508 series 2998280
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What does it take to run a vertically integrated multifamily operation—and do it well?
This week, we’re joined by Michael Root, Co-Founder and Strategic Leader of Root Property Group, who breaks down the systems, strategies, and lessons behind managing nearly 1,000 doors in Chicago’s north side.
From understanding why “selling is a decision made before closing” to avoiding the trap of over-improving a property, Michael shares real, practical insights for investors who want to build long-term wealth the right way.
Key Takeaways:
3:07 – Michael's Core Roles: His three main hats are underwriting deals, asset management (executing strategies), and running the renovation crew.
5:44 – Niche Strategy: Focusing on 10-unit, scattered-site buildings in core neighborhoods allows for hyper-accurate local data and pricing.
10:26 – Tech for Efficiency: Software like ShowMojo automates scheduling and showings, eliminating phone tag and preventing lead loss.
12:41 – Data-Driven Diligence: Use your own portfolio's data to accurately benchmark expenses against the seller's claims before touring the property.
15:16 – Avoid Over-Improving: The worst mistake is over-investing in renovations, causing the property value to exceed what the local market can support ("meeting the market").
17:02 – Legacy Transition: Buying the existing family business structure secured better lending credit and leverage for future acquisitions.
19:55 – When to Sell: Consider selling if you've maximized value, plan no further capital investment, and wouldn't buy the asset back at the current market price.
21:47 – Hindsight: Regrets include not networking more when younger and passing up "good deals" out of fear.
Michael speaks Corwyn's "real estate dialect," diving deep into the world of multifamily acquisitions and the strategic vision needed to lead a multi-million dollar firm.
Connect with Michael:
Contact Number: 773 -904-1 383
Website: https://www.rootrealty.com//
Connect with Corwyn:
Contact Number: 843-619-3005
Instagram: https://www.instagram.com/exitstrategiesradioshow/
Youtube: https://www.youtube.com/channel/UCxoSuynJd5c4qQ_eDXLJaZA
Linkedin: https://www.linkedin.com/in/cmelette/
Shoutout to our Sponsor: Mellifund Capital, LLC
Need funding for your next real estate flip or build? MelliFund Capital makes it fast, flexible, and investor-friendly. Visit MelliFundCapital.com and fund your future today. Again, that's MelliFundCapital.com, M-E-L-L-I-L-U-N-D, Capital.com
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