I recently listened to a panel of experts who buy and sell online Amazon businesses. The entire time I was listening, I couldn’t help but see the similarities to multifamily investing. While these businesses sold different products from nutritional supplements to deodorant, there were some lessons from these entrepreneurs I thought were important to you as you run your multifamily investing business.
Multifamily investing is a business and you should treat it like one. Always interesting to hear the pros and cons of other business models as it sometimes points out the beauty of your business. One of the last comments was about how reoccurring monthly subscription models trade at a higher premium. Netflix, Hulu, and cell phone providers all use monthly subscriptions. The Amazon businesses that were able to build a subscription model are trading at a higher premium compared to businesses that rely on one-time purchases. Subscription businesses provide a reliable and predictable monthly income stream the same way the monthly rent on annual leases is built into the multifamily business model.
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