Marko Vrzic, a self-made multi-millionaire and founder of Vrzic, is known for his dislike for the old ‘own your home and live in it’ interpretation of the American dream. In fact, he dislikes it so much that he felt the sheer need to replace it for something that can create wealth… and he went on to put his last name on it.
Through Vrzic, his real estate investment firm, Marko often points out that most homeowners will always lose money under such a motto, even if the property value goes up. This is due to a mixture of macroeconomic and microeconomic factors, which cause loans and amortization schedules to prohibit homeowners from (ever!) making a profit from selling their houses.
However, regardless of the growing difficulties for gaining from real estate, the underlying scarcity and perceived importance of property continue to make it desirable for homeowners. Misinformation, in a nutshell, causes people to enter a game rigged against them.
Did COVID make real estate a bad investment in 2021?
The COVID-19 pandemic meant a shift in the real estate investment business. Suddenly, millions of people started questioning whether leasing properties in expensive cities and crowded neighborhoods was still reasonable.
Home offices and remote work have made living in a particular area for commuting purposes redundant. This has caused them to re-examine their approach and idea to what constitutes a ‘quality home’.
Particularly in large MSA cities with an abundance of Luxury and Class-A rentals, the tides are noticeably changing. Inflation and the loss of acquisitive power among Americans are causing people to either downsize their living expenses, move in together with others, or come back to their parents. Understanding that in challenging times people might need to become frugal, Vrzic buys exclusively B and C class apartment buildings (which rarely experience downturns in demand), creating an additional safety net for themselves.
Enter the Vrzics
Marko isn’t the only one in the Vrzic clan. The family started making real estate waves not long ago when they redeveloped properties in Brooklyn, New York. The family differentiated themselves by selling high-tier properties for far less than the market value to turn their business around quickly. And they managed to achieve this by driving their sales and churn volumes up, deflating the recession bubble, and creating a win/win situation.
Marko says: “We weren’t there to get rich overnight. Prosperity must be accessible for everyone, and it’s this mentality that led us to build an unorthodox system that could benefit not only us but the communities and everyone that wanted to tag along.”
By learning from redeveloping properties of high value to achieve a greater speed, the Vrzics learned about the many misconceptions in American culture regarding housing and the importance of educating investors. As Marko says:
“Being rich does not equal being wealthy. Being rich is having lots of assets with an equal amount of liabilities while being wealthy means benefiting from the liabilities associated with those assets. Our core mission is to educate as many investors about this difference and help them transcend these barriers.”
The Multi-Family Family Firm
So, why does Vrzic focus on multi-family units?
The Vrzic website showcases in simple math why multi-family properties tend to be better investment vehicles than single-family ones. Vrzic purchases this kind of property within landlord-friendly states and does not associate investors with the loan. The multiple safety nets that multi-family properties provide are ideal for Vrzic’s customers and particularly attractive during recessions and pandemics. In difficult times, these properties tend to pull their weight and help their owners gain much-wanted stability.
Vrzic puts methodical and meticulous research into every property that they acquire. While doing so, they calculate the possible profits of running the unit and how it might fare against favorable or adverse market conditions.
The other key component to their success is that all their properties are located in states with legislation that protects landlords against unruly tenants. This helps the firm maintain their units in the hands of responsible, high-quality renters and protects Vrzic in case of litigation, clipping potential risk.
The Final Component? It’s All Trust
There is nothing new under the sun, and as long as people need places to live, providing living infrastructure will continue to be a worthy pursuit for those that do it well… or that aim, like Vrzic, to find solutions that make them the best in the world.
The pandemic accelerated many industries, and we could be witnessing the rebirth of real estate thanks to the innovation coming into the sector. Entrepreneurs like Vrzic are within the growing and increasingly important group of pioneers leading innovation, democratizing, and improving accessibility to these assets, benefiting anyone accessing them. Leading by honesty and showcasing that investment firms can think and execute in the same ways that families do, Vrzic hopes to lead by example.
As you may have picked up from this article, or as the Vin Diesel meme goes… it all comes down to family.
Image Sourced from Monccur PR
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