Shaik’s Simple Plan to Dominate Multifamily Investing Isn’t “Rocket Science”

Growing up in southern India, Madina Shaik harbored a passion for civil engineering, dreaming of being part of the building process. Today, he stands as a titan in the multifamily investing arena, having built and renovated thousands of units. However, his journey from childhood aspirations to becoming the CEO of Houston-based Makaan Investment Group was anything but straightforward.

Setting the Foundation

Shaik’s path took an unexpected turn when he opted to study electronics instead of civil engineering. In the 1980s and ‘90s, he recognized the burgeoning potential of computing, especially as the engineering field became increasingly saturated. After earning both his bachelor’s and master’s degrees in India, he immigrated to the United States, where he initially sought a career in technology.

In 1997, Shaik took a leap of faith and founded a technology consulting company. What began as a solo venture quickly grew as colleagues reached out, eager to join him. “That’s how I built my company, actually,” he recalled. “By the time I realized it, I had around 200 people working for me.”

However, the dot-com bubble burst in the early 2000s, leading to a significant setback. Shaik was forced to let go of many employees, primarily those on H-1B visas, as projects dwindled. This challenging period prompted him to reinvent both himself and his company. He pivoted towards government contracting and began consulting for the U.S. Army. By 2016, Shaik had rebuilt his company, CompQSoft, into a $100 million enterprise with 500 employees and a robust leadership team in Washington, D.C.

Diving into Real Estate

As Shaik’s consulting business flourished, he began to explore diversification through real estate investing. In 2008, he purchased several single-family homes to use as rental properties, but after a lack of further acquisitions, he realized he needed to delve deeper into the real estate market.

When the COVID-19 pandemic hit, Shaik found himself with an abundance of free time as meetings were canceled and travel ceased. “I was just getting bored,” he admitted, which led him to immerse himself in real estate literature and connect with other investors. In 2020, he acquired nearly 100 single-family homes but soon recognized the limitations of scaling one house at a time.

Determined to make a more significant impact, Shaik launched Makaan Investment Group and made his first multifamily acquisition in 2021. Within just 12 months, he completed 12 acquisitions worth approximately $350 million, totaling around 3,500 apartment units. “That’s my nature. I want everything done yesterday,” he remarked, reflecting his ambitious approach.

After a year of stabilizing his properties and building his team, Shaik is poised for further growth. “Now I can confidently say we are going to continue to grow in that space. Our goal was to target $1 billion this year,” he stated. Despite the challenges posed by rising interest rates, he remains optimistic about reaching that goal in the near future.

“Renters’ Nation”

Shaik’s focus on multifamily investing aligns with a significant trend in the U.S. housing market. “Our country is becoming a renters’ nation,” he noted, highlighting the increasing demand for multifamily housing as more individuals struggle to afford single-family homes. His strategy involves targeting Class B properties—older buildings in desirable neighborhoods that require upgrades.

One of the relatively simple yet effective improvements he has implemented is the addition of dog parks to several complexes, enhancing tenant satisfaction without substantial costs. Beyond renovations, Shaik is also developing new projects to meet market needs, including a build-to-rent gated community featuring single-family homes designed for families with children and pets.

Recognizing the evolving demographics, Shaik is also pivoting towards assisted living facilities, which combine multifamily concepts with essential services. “It’s a similar concept to multifamily, but it has a service component to it,” he explained, noting the higher equity multiples available for investors in this sector.

Team Building

A critical aspect of Shaik’s success has been his focus on team building. He prefers to keep all departments in-house, allowing Makaan to maintain complete control over property management, construction, asset management, and fundraising. “That way we have 100% control on our projects, and we can deliver what we promised to our limited partners,” he emphasized.

Over the past year, Shaik has worked diligently to create processes and systems that will facilitate significant scaling. He learned early on that trying to do everything himself limited his growth potential. “I figured out you do need to trust the smarter people to grow the pie,” he said, advocating for collaboration and delegation.

Interestingly, Shaik’s first hire at Makaan was not a financial expert or property manager but a chief marketing officer. Tracey Tyler, the CMO, quickly became an integral part of the team, helping to establish a robust marketing strategy that included implementing a CRM system and enhancing the company’s social media presence.

Tyler also helped Shaik expand his vision for the company name, “Makaan,” which means “building” or “structure” in Hindi. She pointed out that the name could also symbolize building wealth for investors, aligning perfectly with the company’s mission.

To further engage potential investors, Makaan hosts monthly webinars that educate attendees about the company and the investment process. Shaik believes that even if only 5% to 10% of the participants invest, they can meet their fundraising goals. The webinars also provide transparency, allowing investors to connect with the team and access updates through a dedicated portal.

Growth Mode

Looking ahead, Shaik has ambitious plans for Makaan’s growth. Currently, most of his properties are located in the Houston and Dallas metro areas, with one in Memphis, Tennessee. He aims to expand into more landlord-friendly states, including the Carolinas, Florida, Georgia, and Arizona.

As the company scales, Shaik is contemplating taking it public to access greater equity for larger deals. He currently invests 20% of his own money in each project, instilling confidence among fellow investors. While going public could alter the dynamics of his personal investments, he remains committed to maintaining his stake in each deal.

Regardless of how the company evolves, Shaik is dedicated to upholding the core principles of excellent service for both tenants and investors. “It’s not rocket science. It’s straightforward—having that customer service, the investor relations and property managers, having a good team, understanding and respecting the tenant, and providing the best service,” he concluded. “That’s what we’re trying to do at the end of the day. That’s our goal.”

In a world where multifamily investing can seem complex, Shaik’s straightforward approach and commitment to service set him apart as a leader in the industry.