351: Nothing Avoids Price Declines More Than A Great Location

Great locations save the day when broader markets go south. High density, infill markets with lots of employers and desirable amenities insulate properties from severe downturns which inevitably occur. Mark Hentemann, Founder of Quantum Capital, started out building a portfolio of 20–30-unit Multifamily buildings in Hollywood, CA and nearby L.A. neighborhoods. These properties appreciated considerably as he was able to bring rent-controlled, below market rents up to market. Mark has subsequently expanded to Austin and Denver with 20–40-unit buildings where he doesn’t compete with institutional investors.