Why Buying Private Companies Can Outperform Real Estate

Drew explains valuation differences, higher cash flow margins in buying businesses, and the opportunity to reinvest for growth and distributions.

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Episode notes

Ever wonder what really goes on inside a syndication company? In this rare behind-the-scenes episode, Michael Blank and his Nighthawk Equity business partner, Drew Niffin, pull back the curtain on how they operate their private equity firm — the wins, the painful lessons, and how they’ve adapted during the toughest market the multifamily industry has seen in decades.

They share the full story of scaling from the early partnership days… to building a team… to navigating the last 2.5 years of interest rate spikes, stalled rent growth, and operational pressure. You’ll also get a candid look at what’s changing inside Nighthawk — including new investment opportunities being unlocked for passive investors.

This is the most transparent discussion they’ve ever recorded about what it really takes to run an investment company — and where multifamily investing is going next.

Key Takeaways:

Success Takes a Team: Syndication is impossible to scale alone. Capital raising, operations, and acquisitions each demand full-time focus.
Systems Create Stability: Implementing a business operating system like EOS transformed communication, accountability, and execution across the company.
Hard Markets Build Strong Operators: The last 2.5 years forced better operations, tougher decisions, and stronger lender relationships.
Debt Determines Destiny: Loan structure can make or break a deal — even if operations are strong.
Operations Win: Leasing, renewal strategy, resident experience, and in-house oversight are now essential competitive edges.
The Future Is More Than Multifamily: Nighthawk is expanding into real estate debt funds and boutique private equity (buying profitable small businesses).
Investor-First Mission: Every system and decision centers on one outcome — delivering reliable performance to passive investors.