Episode Transcript
[00:00:00] Speaker A: Welcome to Home Story with Veronica. I'm Veronica Diquez and today we're diving into the people, places and decisions that make a house a home. You're watching now media Television.
Welcome to Home Story where real estate meets real life. Because home isn't just a place. It is the foundation under everything else. Today we are talking about housing through a different lens. Stability, dignity, community. And why more families may be renters for longer. Joining me are the partners behind Mitchell and Sarkishan Holdings, Sharif Mitchell and Edward Sarkishan. A team focused on workforce housing and making quality multifamily living accessible while delivering strong risk adjusted returns for our audience. Meeting you for the first time, who are you and what is Mitchell and Sarcasian Holdings?
[00:00:56] Speaker B: Hi, Veronica. It's a pleasure to be here. We are a vertically integrated real estate company focusing on multifamily acquisitions throughout the southeast, primarily in the high growth markets where we can focus on workforce housing.
[00:01:13] Speaker C: Yeah. Hi, Veronica, thanks for having us.
[00:01:15] Speaker A: Hi. Of course. Thank you for coming to the show.
[00:01:18] Speaker C: Thank you. Yeah, no, like Ed said, so, yeah. We invest in workforce housing for what we call the essential worker. So, you know, when we think about COVID it was, you know, people that went to work every day and didn't just have to work from home. And so, you know, when we think about teachers and firefighters, government workers, you know, that's who we serve, that's our customer, and so that's who we house.
[00:01:39] Speaker A: That is very commendable. I'm so happy that you guys are on the show and now you both clearly care about housing. Where does that passion come from?
[00:01:49] Speaker B: You know, for me it's personal.
I immigrated to US when I was 13 years old and lived in different apartment buildings with affordability programs built in. And it allowed my family to live in better neighborhoods and my brother and myself to go to a better school and start my own business.
So I think, you know, for an everyday person, housing is a necessity. It's a basic need that will allow to transform not only them, but also their families and their friends.
[00:02:29] Speaker C: Yeah. And you know, for me it's. Well, it's personal. You know, I grew up in a single family household with my mom and my sister. And you know, we always had a home and a stable home. And so, you know, with that we can go and focus on, on education and college and opportunities to ultimately lead us to this business. And so when you don't have to think about where you're going to live and when you live near your job or near school, the rest of Life, which can be hard, gets a little bit more simple. So that's what we try to create.
Housing for those that is close to work, close to good schools, that has all the amenities that people want to fill at home and live with dignity and then, of course, attack the rest of life.
[00:03:13] Speaker A: That is amazing. And that is so true. When there is no home, there is no stability, and then everything else just sort of falls apart. So I am so, again, I am so excited to have you guys on the show. This is such a good conversation. And may I ask you, how did the two of you meet and how did you decide to work together?
Sure.
[00:03:32] Speaker B: You want to take this one?
[00:03:33] Speaker C: Yeah. So, you know, we've been in business for. On the investment side. Ed's been an entrepreneur for 20 years. I've been entrepreneur for 20 years as well.
And so I'd say maybe six years ago, we were in the market looking for a new general contractor, or gc, and so interviewed a number of firms, met Ed's firm, Smart Build, at a trade show, and ultimately embarked on the biggest deal of my career to date and needed a new partner. And so met Ed, and we call it. We slayed the dragon together, which we got through a really big institutional diligence on a deal together.
And from there, just knew we were going to be in the trenches together, working and trying to build something.
[00:04:16] Speaker B: And for me, meeting Sharif, he shows up every day. He works really, really hard. I think both of us have complementary skills that we've developed over the years.
He works on the capital underwriting and acquisitions. I provide operational and capital raising experience. So we both are complementary within the business, and we don't really overlap. So I think, putting together our experiences, this is why we decided to form the company and building it together.
[00:04:51] Speaker C: And just real quick, Veronica, you know, for the. For. For what we do right, which we call value add multifamily, it requires a construction partner, and oftentimes the things that go wrong are tied to renovations and, you know, budgets and scope and schedule. And so having someone that we trust implicitly, that that's aligned with our interest, you know, really allows us to have more positive, you know, outcomes and control positive outcomes, given that we're working together day to day. So just being aligned has always boded well for any investment. And Ed and I have always been aligned, so it works out well.
[00:05:29] Speaker A: That's amazing. You guys are the dream team.
[00:05:31] Speaker C: Yeah, that's right.
[00:05:33] Speaker A: I love it. How long have you been working together?
[00:05:36] Speaker C: So I'd say we've been working Together six years.
And then about three years ago, we started, you know, you know, putting our brains together on relationships that we can go and help continue to scale Ed's business on our side. You know, we look at deals and call it six to eight markets. And so, you know, having the ability to bring Ed to market price, you know, jobs in real time, you know, we say, here's the wish list. You know, we want to upgrade the community and do the pool and, you know, you know, change the tennis courts to sport courts and soccer fields, et cetera. And so, you know, having a partner that can price those deals with us in real time has really helped. Well, and so six years together working on our deals, and then ultimately we merged at the end of last year to launch M and S Holdings, or Mitchell and Sarkeesian Holdings. And so it's been a rapid six months. We've covered a lot of territory, and we're growing pretty quickly.
[00:06:29] Speaker A: That is amazing. Ed, you want to add anything to that?
[00:06:32] Speaker B: I mean, we certainly work very, very hard.
We worked really hard to get here, but we also have a lot of fun along the way. We do enjoy this industry. We do enjoy connecting with. And I think for the both of us, we're really in the position at this point to also help and give back. And I think this is why both of us are here today, is to help others with everything we learned along the way and the connections and experiences that we've had to get us here.
[00:07:03] Speaker C: Yeah, it's really the platform that we're building. We always like to say we're building a road for others to put things on top of it. And so when we think about our vendors that we support, you know, who do we hire? You know, we can essentially, you know, control that all the way through, have, you know, people that reflect the communities that we serve and make sure that we're taking care of the people that we serve. And so, you know, a lot of it is really beyond just the numbers and the dollars. A lot of it is truly trying to make home for others and create wealth for others, too. So we really are passionate about what we're doing.
[00:07:36] Speaker A: Well, and I think what you're doing is going to make a difference to just so many people, and you're going to change so many lives. So I absolutely congratulate you for that, and I thank you in behalf of all the people that you probably helped already and the ones that you will help in the future.
And you spoke about, you know, Ed, that you're an immigrant, and Sharif, that You were a single family income, and I know how important a home is. I'm an immigrant as well, and then I have a single mother as well. So it's just one of those that, you know, I know exactly what you're talking about because I've been through it. And my question to you is, what to each of you, what does home mean to you?
[00:08:13] Speaker B: For me, personally, it's really the basic need, being able to feel safe, have a place that you can gather with your family and be able to build from that place together.
So it certainly, in my opinion, should be essentially one piece that everyone should have and not have a home.
[00:08:43] Speaker C: Yeah. And then for me, it's the same thing. It's family.
You know, I always like to say our back door was always open and people could just come in off the deck, and our house was always open. And so, you know, family, community, the values that we learn and share with one another, you know, that was imparted on, on us through my mother and grandfather.
And instability, again, you know, just, you know, life is hard and, you know, it can be challenging, but if you have some stability in your life, you know, things. Things tend to work out. And so, you know, that's what home means for us, for sure.
[00:09:17] Speaker A: That's wonderful. And I'm guessing you have a vision for the company to, you know, help even more people, or what is it that you want to really ultimately achieve with your company?
[00:09:28] Speaker C: You know, I'd say a couple things. You know, we have our company goals and our personal goals. You know, I think our company goals is to get to 100 million of revenue on the construction side and to buy at least 10,000 more units, because with that, that compounds the number of people we serve, you know, with that, we would love to create 1,000 jobs and put, you know, $100 million into the community.
And so, you know, those are just some of the metrics that we like. But, you know, the other thing, too, is, is we want to see home ownership. Right. And so when we think about what we do, we provide, you know, predictable rental increases that allow families to save money to go out and buy a home. And so when we look at our exit interviews, you know, I like to see, you know, people leaving to go buy a home, not necessarily to leave to a competitor. Right. And so if we can keep, you know, resident there, obviously we increase our retention and occupancy, but we like to see other people achieve the American dream through home ownership. So that's really, you know, a goal of ours, obviously, with the grandiose goals of scaling a company, but really making sure that people can achieve the American dream of homeownership.
[00:10:31] Speaker B: I agree with Sharif. You know, we are in a space where we provide homes for a lot of our residents and, you know, we want to make sure that, you know, they're able to afford a home at some point in their life with a lot of apartments. And, you know, what's been happening to the economy, it becomes very, very difficult. And to Sherry's point, having a predictable rental increases. Having a predictable, a good area to live in allows for those opportunities to blossom. And people can transfer from apartment rentals to home ownership in the near future.
[00:11:11] Speaker A: That is, I love that. And, you know, I work as a real estate agent. And the joy that I see when people buy their first home is just unparalleled, you know, is that achievement. And now they've made an investment that's going to help them forever. So people like you, putting them in a position in which they can do that is truly, is just incredible because you're opening the doors for those people for so many things. And you get what you give, right? So you guys are doing such an amazing thing. So I hope that all of your goals, business and personal, do, you do achieve them. And I, I'm pretty sure that you will with everything that you're doing. It just makes such a difference. And next we are actually going to talk about the value add playbook, how multifamily properties get repositioned. Don't go anywhere.
We'll be right back with more stories, strategies and inspiration to help you write your next home chapter. This is Home Story with Veronica on NOW Media Television.
And we're back. I'm Veronica Dicus and you're watching Home Story with Veronica on NOW Media Television. Let's jump back into today's conversation.
Welcome back to Home Story on NOW Media Television. One more real estate conversations that actually help watch live or on demand anytime on the Free Now Media TV app on Roku or iOS with bilingual programming in English and Espanol if you prefer audio, catch the podcast at NOW Media tv. We are back with Sharif Mitchell and with Ed Sarkishan of M and S Holdings. And and now we are going inside the part of real estate. Most people never see the transformation because value add sounds like a bug word until you realize it can mean safer buildings, better layout, lower utility costs, and a very different quality of life for residents.
Now the topic we are going to be discussing is define repositioning in plain language acquisition, due diligence renovation plan, resident experience and stabilized performance.
Ed, when you walk a property for the first time, what are the first three things that you evaluate to decide if it's a true value add opportunity for you all?
[00:13:23] Speaker B: Well, I think it all starts with location. You know, we first look at location for the property and seeing the neighborhood and what we think is going to happen in that area and do people want to move into that neighborhood? I think that all starts with that. As they say, location, location, location is probably the number one thing for any real estate investment.
On the construction side, when we do assess the property, we typically look at the bones. So be mechanicals, roofs, will the property continue to perform? Are there any large issues that will require a lot of construction capital to repair or replace so that the, you know, the day to day operations will continue, you know, as they're maintained.
Once that is reviewed, we then look at, you know, how do we position this particular property against other properties in the area? So you know, if there's a couple apartment buildings within 1 to 2 mile radius, what do they offer? How do we take over and try
[00:14:38] Speaker A: to
[00:14:40] Speaker B: fix, repair the property and bring it into the market State that new residents would want to come in and lease the apartments, but also the existing residents also would want to stay. In some cases the previous management company or ownership group might not have taken care of the property. While there could be some repairs, delayed maintenance, that needs to be done. So we want to make sure we understand all the details and create a plan of what we need to do the first 3, 612 months and build that into the business plan that helps us understand the financial performance of the property.
[00:15:24] Speaker A: That is very interesting. Sharif, did you want to add anything to that?
[00:15:27] Speaker C: Yeah. And then of course we look at Properties 1, the location, but then also, you know, where, where can we create more community?
So we look at properties that have pools, fitness centers, areas for playgrounds or parks, dog parks, et cetera, dog walks.
We want to make sure that they have a clubhouse, you know, because we offer programming on site monthly at the properties. And so we're looking at all of these, the spaces at the property to enhance them to, you know, overall make community.
And then we'll, we'll invest those dollars there. We also do you know, any energy efficient upgrades? And so we'll, we'll look at lighting upgrades, can we bring in LED lighting? Can we reduce water cost? And so, you know, shower heads, aerators, sinks, et cetera, toilets, you know, low flow toilets. And so can we make the energy efficiency upgrades to make the property more resilient and sustainable and still generating the returns. And then, of course, it's really making sure that we have everything we need to capture families, seniors, young adults, young professionals, et cetera, and make the property such that everyone wants to live there. And so when we think about the new customer that we serve, there'll be more packages. So can we put Amazon hubs on the property?
What type of programming can we offer? And so we'll look at the demographics of the community, whether it be seniors and we need more social events, or are we families and we need, you know, back to school programming or, you know, Halloween drives and turkeys drives for Thanksgiving. Do we need telehealth if we have seniors? And so do we bring in, you know, medical professionals and other partners to come in, or do we need to do financial literacy? So we've partnered with banks and other nonprofits to come in and help teach financial literacy to our communities and to our residents. And so all of these things we do really, is to create community and to drive home, of course. And ultimately we think that's not only good for the residents, but also good business. And so when the residents stay longer, our retention increases, our occupancy stays there, and our vacancy and bad debt is reduced. That translates to better returns and better outcomes. And so all of these things, we're looking at what we call the return on that investment and both the investment into our communities, but also into our residents.
[00:17:40] Speaker A: You had me a dog park.
I hey, it sounds like I would want to live there. So it's incredible how many things you guys consider and take into consideration as a factor. And we don't even think about it. We just go to this place and we're like, oh, they have this and this and this. And the fact that you think about it beforehand to help create that environment for somebody to live there, it's. It's truly incredible. I'm really at all at everything that you guys just threw up, you know.
[00:18:07] Speaker C: Sure. Well, again, I mean, we know who we serve. We know who we serve, right? We know who we serve. And so, you know, ultimately it's know your customer. And again, it's a competitive business. And so, you know, when you have a property across the street that's maybe a newer build, and we're. And we're trying to renovate our property. How can we make it competitive with the newer property and make it more affordable, but also compete? Because ultimately you can terminate your lease in 30 days and ultimately move across the street. So we do have to be defensive as it relates to, you know, our properties, but making sure that we, we, we, we can serve our residents to make them want to stay. So it's all important.
[00:18:44] Speaker A: That's awesome. And, you know, talking about renovations and everything, when viewers hear renovation, especially in the real estate world that I'm involved in, they think cosmetic paint, countertops, what upgrades actually move the needle in 2026, like efficiency systems, comfort, safety, amenities that get used. What, what do you concentrate on to move that needle?
[00:19:05] Speaker B: You know, in a lot of the apartments that we own and also work with, with, with, with other clients, I think the biggest shift that we've seen has been amenities. I think, you know, package. Sharif's Point has been the biggest kind of changeover where people want to buy more things online and being able to have an Amazon package lot package lock is at the property security, I think as well. Being able to enter and exit the property or your own apartment and log with the keyless entries in different areas, that's been a growing trend.
We do look a lot at the basics as well. Making sure that when you're in your home, everything functions, the appliances, the lighting to Cherise Point. Energy efficiency is a key metric for us in making sure that we're not wasting these valuable resources with this current environment.
There has been a lot more capital capex work, which is the exteriors of the roofs and exterior of the buildings as well as the interiors, common areas to essentially maintain the grounds and do selective renovations. As the market has been a little soft, but is certainly growing into, you know, picking up again in the areas
[00:20:33] Speaker C: that we work with and then additionally adding to that. We're, you know, we do a lot of business in the Southeast where it's getting. Continue to get warmer and warmer. So we really focus on H vac systems and the electricals and making sure that, you know, that our properties have, have energy efficient, you know, amenities and utilities.
The other piece that we're seeing are washer dryers in unit because a lot of people are growing their families or increasing the number of people that live there with roommates or smaller families that are growing or seniors bringing in grandkids.
And so we're wanting to make sure that you have washer dryers either on site, primarily in unit, but again, if it's not necessarily at that property or the space in that unit, we're making sure that they're on site. The last thing I'd say is storage.
It is a competitive business with the local stores nearby. However, people are using garages as Storage on site also just closets by the stairwells. And so can we build storage units for residents to rent where it's closer to home? They can go and walk down the hall or walk to their garage and grab things without needing to get in a car and go to an exterior facility. So we are looking at all of those things to serve our residents.
[00:21:46] Speaker A: That is very smart. Again, I'm going to have to go and check out your places.
You're making me want to rent over there.
Before we go to the next question, I want to make sure that we have enough time for our viewers to know where to reach out to you. So if somebody wants some information about M and S holdings, where do they go? What's their website? How do they get a hold of you guys?
Sure.
[00:22:06] Speaker B: You know, if you're looking to reach out, you can go to our website. It's www.mshlds.com Ms. Holdings.
There's an email as well as a phone. You can give us a buzz and we'll be happy to discuss what we do and see how it could fit your investment criteria. And if we can work together and help a lot of our investors build their exposure into the US multifamily real estate market.
[00:22:37] Speaker C: Yeah, and we also have a newsletter so you can sign up on our website to start stay in the loop on what we're doing and what we're seeing in the market. We also have a LinkedIn page both for our personal pages along with our company pages on LinkedIn. So we're easily available and always looking to partner and find new potential investors that want to grow with us and participate with us and do some good with us. So definitely always looking for new partners.
[00:23:02] Speaker A: I will be following you for sure. I'm already interested.
So the ideal person that would reach out to you would be somebody who wants to invest in this type of thing, correct?
[00:23:11] Speaker C: Yeah, invest with us or they have a facility that they might want to partner with us to maybe come and help unlock value or even just help renovate.
On our smart build side, we do a lot of third party business where we can help facilitate these types of improvements for our clients.
We think like owners and so we can provide real time pricing and real time analysis on what we're seeing because it all all influences what we're doing. And again for us, we have a 9 million shortage in this country for workforce housing and so ultimately it's going to take more than just what we're doing to satisfy the need and we can't build our way out of this challenge. Right. Affordability is becoming more and more unattainable for many people.
[00:23:55] Speaker A: And we'll talk about that. And I'm so sorry to cut you off, but we need to go on a break. So keep that thought because I want to ask a question on our next segment, and we are going to talk about how do everyday buyers and sellers compete in a market where uncertainty, affordability and competition all collide. We'll be right back.
We'll be right back with more stories, strategies and inspiration to help you write your next home chapter. This is HOME STORY with Veronica on NOW Media Television.
And we're back. I'm Veronica Dikez, and you're watching HOME STORY with Veronica on NOW Media Television.
Let's jump back into today's conversation.
Hey, everyone, this is the part that hits home affordability. People aren't just making financial decisions, they are making life decisions. New jobs, new babies, aging parents, divorces, fresh starts. So we're going to talk about how real people can make smart moves in a market that still feels intimidating. And why this is important with M and S Holdings is because we want to talk to those who invest, those who are investing right now in owning property, that they're going to rent out multifamily homes.
The issue of affordability can become a really hot topic with those kind of investors. So we want to make sure that we address that because this company will provide definitely options and solutions for that. So, Sharif, we were talking about affordability right before we went on the break. Can we pick up on what you were saying about affordability, please?
[00:25:22] Speaker C: Sure. So when we talk about rent burden, that rent burden resident in our country is someone that spends more than 30% of their income on rent. And so when we look at investments in certain markets, we're looking at the single family home price and what that entry home price is for our potential renter and what that mortgage would look like with the, you know, principal interest, taxes and insurance. And oftentimes a single family home price is going to be almost double of what they could rent similar property with us for. And so when we think about that Delta, we think about how long will it take for a resident to save up money with us to go and then buy that single family home or that starter home. And that could take three to four years. And again, with the rental predictability for us, they can save money knowing that their annual increases will grow 3 to 5% a year and ultimately can build a plan and a budget around how do we save to ultimately achieve that? That American dream of homeownership. And so, you know, right now what we're seeing is that number in terms of rent burden, residents is growing, the cost of housing is increasing, wages are flat if not declining in certain markets. And so ultimately that gap and that and that opportunity to buy that home is becoming more of an illusion.
[00:26:37] Speaker A: Absolutely. Ed, what can you add to this
[00:26:39] Speaker B: conversation, you know, with what Sharif mentioned? I think it is getting harder and harder every day to own a home. I think with us being able to understand what the environment is and provide those programs for our residents, they can get closer to being able to get there. But it takes a lot of work and it is, it does get harder and harder with individual investors owning their own properties and being able to compete in this environment.
We've seen a lot of investors switch sides from being an active investor doing local investments into rolling it in, selling off their properties and working with us and co investing into these larger apartment projects so that they can still get the benefits of real estate, but not necessarily deal with the day to day that kind of is left to us to make sure that the properties are performing. We're able to lower overall costs and maximize efficiencies as we have a larger apartment building or portfolio in that same area.
[00:27:58] Speaker C: And then generally you want to do things at scale too, right? So when you think about just a loan, a single family loan is full recourse. You're personally guaranteeing that loan, whereas any apartment building over five units would be considered a commercial property and that would trigger a non recourse loan. And so ultimately the risk, the profile goes down by increasing or investing at scale.
And then on the operations side, when you think about just somebody to manage the property, you still have to pay for that person's time and that person's attention to your property. And you have to pay a real wage. And so ultimately you need more cash flow to support your team, support your staff, and to address utility costs and resident costs. And so doing things at scale sometimes makes more sense than, you know, trying to be an investor on a single family property. And that's why we think that these opportunities to invest in larger properties with groups like us make sense because then you have, you can participate, you have less risk, you can invest with professionals that do this every day and still generate some of the same returns you would on your own, without the sweat and equity that you all need to put in on your own. And so we think it's a mutually beneficial ecosystem and ultimately can achieve the same financial goals.
[00:29:10] Speaker A: Oh, definitely. I'M an investor myself and I help a lot of investors. And you're 100% right. And right now the market is just so hard. You know, some of the loans are based on what can you rent the house for, can it pay itself? And it's very hard to find that nowadays and how that will be able to pay for itself. And then you have all the maintenance costs and the property management costs and everything. So if so, let's, let's, let's do real talk for a second, if you guys don't mind. I am an investor. I own multifamily and I own a single home. It's not those many units, it's like six units. It is crazy. The amount of work that I have to do and the investments that we have to put in. We're still working on it.
So if I were to say, listen, Ed and Tariff, I would be interested in investing with you guys. Tell me how that conversation would go with somebody who's interested, somebody like me who's already invested and now maybe wants to take a different route and investing with somebody who's going to take the headache away.
[00:30:05] Speaker C: Pretty much, yeah. I think the first thing is really understanding what are your goals? You know, are you looking to generate cash flow? Are you looking for long term appreciation? Are you looking for tax efficient strategies to invest? It's really just curating an investment program around what you're for looking, looking for, you know, for us, we do the same thing. We invest in workforce, housing and high cost markets. And so we can pick a market that you might be interested in, you know, if you want to be closer to your investment and see your investment at work. We can, we can talk about, you know, deals in Charlotte, like we're looking at right now. Veronica.
[00:30:36] Speaker A: Okay.
[00:30:36] Speaker C: So ultimately it would say, hey, you know, we, this is where we are. This is the business plan. You know, these are, these are their, you know, expected returns. And this is, this is how we look to go about executing the business plan. Here's our team and ultimately this is what we're trying to accomplish. And we just try to see if it's a match. Candidly, we're not selling anything, we're not soliciting anything. This is something we do every day. This is something that is part of our business.
And ultimately looking to generate partnerships and align interest.
[00:31:05] Speaker B: And to add to that, Veronica, I think the main question that we'd want to ask you is how much time do you want to get back? I'm sure managing a two family or a three Family is a full time job. After you, you come home from a full time job. So if somebody calls you and they have a plumbing problem, do you want to be dealing with that at 8 or 9pm at night?
I think that transition happens with a lot of our clients and investors that they decide to work with us is where they've tried it on their own.
They were successful, but they do want to get a little bit of time for themselves and their families and rather have, you know, too young. I'm not sure if we're still young, but hard working, you know, multifamily investors really take it to the next level and help build, you know, the wealth for themselves and their families. I mean, our goal is to, you know, build it not just for ourselves, but for our clients. You know, we put our names on the door, so to speak. You know, I always tell Sharif, the buck stops with us. You know, there's a lot of other ownership groups that you won't know who owns the building. Right. I think if you work with us, we want to make sure that where you live, you appreciate it.
You want to give positive feedback on us as a company, as a long term holder and we want to bring people with us along this journey of creating wealth and building this company together.
[00:32:38] Speaker A: I love that. So what you're saying is that you handle pretty much everything and we just become partners. And me as an investor, you handle the plumbing, you handle the headaches, the property management, and I just give you some money.
[00:32:51] Speaker C: Yeah. And of course we provide the transparency too. Right. So we provide monthly reports to our investors, you know, quarterly reports on how the properties are performing. Here's what we're doing, Here's a look at our resident programming, here's a look at vacancy, all the different financial metrics. But also here's what we're doing. We provide pictures. So the best thing, you know, for us as well is we bought a 55 plus facility last year and we renovated the entire community room with new furniture and we had like a Christmas social and brought in a singer and a pianist and you could just see the seniors having a ball. And so we'll provide pictures and that type of reporting as well. So you understand kind of what we're doing beyond just the numbers, but how we're serving the community, what we're doing, what CapEx projects we're doing and what that looks like. And so again, we're trying to create community everywhere we go. Obviously it's for financial returns, but also for good impact on the residents.
[00:33:46] Speaker A: Yeah, of Course, I love that. So if you were to study an area like Charlotte, what would be the main things that you are looking for to find a good opportunity?
[00:33:55] Speaker C: Yeah, so again, we focus on just the macro data to start. So we've looked at job growth, we've looked at population growth, we looked at unemployment declines in the state. We look at, you know, what's taking place. And so Charlotte has been growing consistently. I live in the New York area and we've seen a lot of people leave, you know, from the northeast down to Charlotte. Yes.
[00:34:14] Speaker A: And so we get a lot of relocation.
[00:34:16] Speaker C: We're seeing a lot of relocation. So with that, you know, that creates supply challenges which is going to increase pricing. And so we look at those single family home prices and those have started to creep up, you know, above 450, 550 for starter homes and certain neighborhoods are 750 plus. And so we understand what's happening in the market. And so then we look to identify properties that make sense that, that kind of, that fit that box. Right. So we like south Charlotte, what's going on there.
We like some of the northeastern suburbs. We looked at areas in University Village as an example. And so we're looking at these areas and seeing where the growth is and then looking for the apartment buildings that could, that could potentially be priced right below the single family homes and the class A properties. And so we want to be right below that and at least be 15% below top of market. So that we know we're catering to a demographic that's going to be in need and that increases our demand for our product and what we're trying to accomplish. And so those are certain things that we're looking for, you know, proximity to jobs. We like to buy near hospitals and job demand areas or manufacturing plants.
You know, we like to buy near transportation. So, you know, if there are rail lines that access downtown, we like to look at that. And so we're looking at all of the things that our residents will need and trying to solve those problems for them up front and then finding the ideal locations for them to house.
[00:35:37] Speaker B: And it's very close to you.
It's very close to you.
[00:35:41] Speaker A: Don't want to break, but go ahead.
[00:35:42] Speaker B: It's very close to you. So you can drive by some of these properties as well. So that's a plus.
[00:35:48] Speaker A: Yes, yes. And all the areas you mentioned, I'm like, oh, you really have done your homework in Charlotte. I absolutely love that. So, yeah, we are going to talk after the show for sure.
But next we are going to zoom out. And what's the 2026 outlook and what should viewers watch so that they can write their next chapter with confidence? We'll be right back.
We'll be right back with more stories, strategies and inspiration to help you write your next home chapter. This is Home Story with Veronica on NOW Media Television.
And we're back. I'm Veronica Dicus and you're watching Home Story with Veronica on NOW Media Television. Let's jump back into today's conversation.
Hey everyone, welcome back to Home Story on NOW Media Television. Stream this episode and your other favorite live or on demand on the free Now Media TV app on Roku or iOS. And if you are on the go, listen anytime at www.nowmedia.tv.
we are in our final I'm so Sad segment with Sharif Mitchell and Edward Kishan. And I want to land this with clarity. Whether you are buying, selling, renting, investing or renovating, we are going to talk about a multi family unit outlook for 2026 so that you can make decisions from confidence and not panic and hopefully partner with M and S Holdings so that they can help us take us to the next level.
So guys, let's talk about the outlook for 2026 on multifamily units. What can you bless us with? What information can you bless us with about that?
[00:37:26] Speaker C: Sure.
So I think there's a lot of things to be optimistic on. Despite the broader world and things that are going on.
We have seen a tremendous opportunity to buy just given where interest rates were in 2023 relative to where we are now. And so with the higher interest rate environment, it has helped to correct some of the values. And so we are seeing a lot of buying opportunities at tremendous basis below replacement costs. And so we're very bullish on multifamily. We think that the new supply that was added to the markets that we're looking at over the last few years are starting to absorb the concessions and all of the rental concessions are starting to soften. We are starting to see some rent growth emerge back in some of the product. And so we think that we can buy newer product that's in better condition at a basis that makes tremendous sense relative to where we were just four or five years ago. And so we're very optimistic on that. And for us, our goal is to really try to buy 1 to 2000 units this year at tremendous basis in the markets that we talked about, Charlotte being one. Veronica and again, the other piece of that is that this environment has been a challenge over the last few years and so the operators that are really good and know how to operate buildings, know how to handle their construction, know how to manage a team, know how to take care of the residents, are going to be the ones that are going to thrive in this environment. We are seeing a lot of competitors and just other, other business plans not come to fruition. And that's because it was, it was, you know, maybe poor planning and underwriting on the front end and ultimately got caught in the high interest rate environment. So we are seeing a lot of those mistakes turn into opportunities for us. And again, we're very excited about the buying opportunities.
[00:39:07] Speaker B: And just to add to Sharee's point, I think one of the things that we pride ourselves on is being conservative in terms of our underwriting and assumptions. And you know, we're not looking to rush into any opportunities that we don't have a full grasp on. Over the last few years, there's been a lot of buying frenzy that has transpired in the market. People bought assets at a very high price, then they've been holding onto them even though they've been losing money and not wanting to exit. But at some point we're seeing more and more transactions that are happening in the market where they just can't hold onto these properties any longer.
Prices have been leveling off. So for patient investors that have a solid business plan, have solid underwriting abilities, as they have a construction team in house, it is a tremendous buying opportunity to be at the forefront of it. This is why we're looking to partner with passive investors, family offices, in addition to some of our institutional clients, to be able to be ready when these opportunities are presenting themselves. And we do have a few projects now that we are in the midst of essentially marketing and be able to raise capital for in these areas that have long been unachievable just because of such high prices. But we've been waiting patiently enough and to Shirvi's point, who does a lot of the work on the underwriting and acquisition, that's a virtue. And then the real estate playbook is being patient and not over pay for an asset because if you buy it right, everything else falls into place. But if you overpay initially, then you're essentially fighting a losing battle. So I think making sure that you buy right is the number one thing we'll look at. And it takes a very, very long patience, which, you know, my partner does have.
[00:41:14] Speaker A: Sure, you're 100% right. When I talk to my investor buyers, I always tell them, you know, the money is Made from the beginning, it's not going to be at the end. If you don't, if it doesn't make sense at the beginning, then like you said, you're going to have an uphill battle later on.
And so I'm curious, when you start studying an area and you have investors in that area and you're ready to go and you start doing your market analysis, what is the time frame that takes from typically, Right, because I'm sure it's different in different markets and so forth. And now that you are 100 right, the prices have stabilized after the nonsense of COVID and the 2, 3% interest rates, all the prices were going crazy. So now we're definitely seeing more of a steady thing. Even though Charlotte, they haven't really gone down. It's amazing. Charlotte is amazing. You guys really should get into Charlotte.
Hopefully we'll work together for that. But what is the time frame that takes when you start working on a project to. From beginning to end? And if it's totally different then, then it's totally different?
[00:42:16] Speaker C: No, I think, you know, for us, we like to say we like to do deals in 90 days or less. You know, again, it's still a competitive market and you do have sellers that have needs, whether it's to pay off debt or pay back investors, et cetera. And so they are looking for market transactions and they're looking for certainty of execution. And so we want to do that through time, through the right time execution, and make sure that we have both the business plan and the capital in place by then. The capital markets are still liquid for our business. Of course. The agencies have always been there for our business. And so as long as we've got the equity to close on the deal, we can move the transaction in 90 days or less. And so again, market rate expectations. We're trying to make markets on pricing with sellers. We're trying to get deals done. We all have needs. We want to invest, they want to exit. And so we are trying to do it expeditiously. And so we are, you know, coming into a market evaluating deals all the time. We're always pricing capex every week, both for our deals and for our clients. And of course, we can underwrite deals pretty quickly. And then we get into the market, we tour the market, we bid on the properties, we try to make that deal work at a price that makes sense for both parties and then we go and execute on the deal. And so ultimately we always say that you can buy a deal in 90 days. Really the value and the opportunity set and the money you make is really during the hold period and the asset management period, through the life of the hold and the life of the business plan. So ultimately we can buy quickly, but we want to make sure that we operate it efficiently, effectively and realistically with expectations and underwriting that makes sense.
[00:43:47] Speaker B: And just to add to Shareese point, when we acquire property, we already have a business plan in place. You know, what that means is, you know, after the acquisition, as, you know, as soon as we close, we have a 30, 60, 90 day plan, 12 month, 24 month plan of what needs to happen to the property.
You know, we typically, you know, don't do any drastic, you know, renovations or, you know, any drastic changes. You know, we make sure that we understand, you know, fully understand the staff that works at the property, the residents. And, you know, we do have, you know, time frames that we develop in terms of construction, you know, asset management, you know, maintenance, resident services that we, you know, have already preset, developed and executed throughout the life core, the life cycle of the investment.
[00:44:41] Speaker A: That's wonderful. And talking about, you know, when you take over a building, there's residents there already and so forth. We. I mentioned a little bit before about renovations and upgrades. What are some of the upgrades that you guys that you have found to be more effective and more important and give you the most return on your investment right away from the bat?
[00:45:01] Speaker B: Sure, I'd love to take that. I think majority of the initial returns that you would get on the renovations is really in unit, assuming that the property is in decent condition. So in most properties we would go in and we would renovate kitchen and bathrooms, put in new appliances, update countertops, whether we replace cabinets or paint boxes and install doors. That just depends on what we underwrote in the initial business plan and also understanding what the market around the property actually serves with the competition.
Most people spend a lot of their time in the kitchen and using the kitchen. So I think anywhere that the person typically spends a lot of their time, we want to make sure that they enjoy cooking and being with their family in the living area.
So we spend a lot of the investment in those areas and we see the biggest return.
You know, especially it's the most visual, right. Kitchen and bathroom. How does it look compared to some of the competition that's out there?
[00:46:12] Speaker C: And even with that also opening up the space. So, you know, if there are, if there are countertops that are too high, maybe we lower it so that, you know, a single mom or a single father could cook dinner do homework at the same time, then eat in the, in the living area or common area and you thinking it all the way through. So we try to think about our residents that way and how they would use the space. Space and so yes, the kitchens and bathrooms, but can we configure it? Can we open it up? Can we make it more livable and usable? Can we put a washer, dryer somewhere, a dishwasher somewhere? So we are spending time there but also looking at the little tweaks we can make to enhance someone's life.
[00:46:46] Speaker A: I love that. It's, it's funny. It's the same conversation I have when I have a seller wanting to sell a home. Where should I concentrate on? Kitchen and bathrooms, please. Exactly.
So absolutely. Now guys, before we have about a minute or so, I want to make sure that people know where to find you. Can you share again? Where can people contact you who are interested in investing in this?
[00:47:05] Speaker C: Sure. So Our website is www.mshlds.com. you can find us there and sign up for our newsletter on the website and get in touch with us. We also have a LinkedIn presence for both Mitchell and Sarkeesian holdings as well as our personal pages. Sharif, Mitchell, Edward Sarkeesian.
[00:47:24] Speaker B: Yeah. And we would love a conversation if you need any advice on what you're currently doing, learning more about how we do what we do on this side of the business. We'd be happy to have a conversation and hopefully help you along the way. Wherever you are with your current investments, anywhere.
[00:47:48] Speaker A: I love it. I will be contacting you for sure. Thank you so much, so much for being on the show. Ed and Sharif. It was an absolute pleasure. I learned so much. I'm pretty sure this is one of the best segments, episodes that we've done and I'm pretty sure a lot of viewers are going to be reaching out to you because truly what you do is amazing. And you are not just doing a business of owning multi family homes. You are providing a solution to many families who really need it and you are giving them an exit strategy so that they can buy a home. So I thank you for that because that's very commendable. It was an absolute pleasure to have you guys. To have you guys on the show. Watch us again on NOW Media TV Home Story with Veronica.
[00:48:26] Speaker B: Thank you.
[00:48:27] Speaker C: Thank you.
