Lucrative Multi-Family Rentals

by | Nov 11, 2019

Greenleaf Property Management is now in four markets and manages a large portfolio of properties. But it started as a few small investment properties purchased by Josh Friedensohn and his business partner. After Friedensohn graduated college, he pursued a career in the engineering field, but he wanted to achieve more than salary stability. Friedensohn wanted financial freedom and real estate served as a means to get there. 

Building a Sustainable Career in Real Estate

Friedensohn had to settle for a part-time effort during the first five years. But as he made friends and sought out new opportunities, Friedensohn’s career trajectory changed directions. Today, Friedensohn’s portfolio is roughly around $200M and he is doing this full time. Greenleaf is vertically integrated so they renovate and operate everything that they own. Their portfolio includes multi-family, mobile homes, offices, and triple net leases.

In real estate, you don’t need an education or a degree. All you need is grit and hustle. And Josh Friedensohn’s team generally work harder, longer, and more consistently than a lot of their competitors. That is one of the main drivers of their success. Greenleaf is systematic and process-driven which helped them play the long game. But their high level of foresight is also what landed them in multi-family. When single-family rentals depreciate, your cashflow is wiped out for years to come. But multi-family means there many doors sharing the cost. Multi-family rentals became the most viable longterm option for Greenleaf, and that is what their business model is built around to this day.

Why You Should Follow Population Trends

Mobile homes are another part of their strategy, and they work to buy up as many small mobile home parks in high-density areas that they can. They aggregate the mobile home parks up with management efficiencies, then exit with that scale. But Friedensohn’s business model is replicable by other management companies throughout the country and there is a lot to learn from it. Their primary markets were chosen by following population trends that impact economic trends. There are other great markets right now, but you should consider whether you can get to your properties and back in a reasonable timeframe or not.

Perseverance and determination are major factors in the success of a real estate investor. But timing also plays a major part. For example, Everyone gets frustrated with their job 3-4 years in, but Friedensohn just happened to experience that frustration amidst an economic recession. There is a degree of luck involved in getting on your feet as an investor, but the relentless work ethic and grit make sure that you are prepared when those lucky opportunities present themselves.

Josh Friedensohn built a $200M portfolio with 110 full-time employees and over 330 investors. By focusing on a niche, developing a strategy specifically for that market, and following through with grit and determination, you won’t even need luck on your side. For more episodes of the Real Estate Investing for Professional Men and Women podcast, featuring other informative guests from across the business world who can help you create wealth, please visit me at  www.myinvestmentservices.com/podcast/.

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