As we round first base in the 3rd quarter of 2020, from my perspective we’re settling into a new-normal. A normal that is full of question marks and ambiguity. Not an easy place to be as an investor, but the appetite for multifamily remains quite strong.
The first half of 2020 is essentially the tale of two economies: the pre-pandemic economy and the economy of the pandemic’s first three months. The very nature of what this crisis has caused will […]
There was a pause on the other end of the line, and then he said… “You literally just blew my mind.”
This was the response I received after sharing with a new friend a powerful example of how using cap rates – when properly understood – to your advantage, can dramatically increase the bottom line of a value-add investor in the multifamily space. This simple insight dramatically changed the mindset of an experienced single-family investor getting his start in multifamily.
It […]
Using Leverage to Increase Your ROI
When deciding how to invest your hard-earned money, multifamily investments continue to be a source of above-average returns. Data from a recent study forecasts a healthy economy and even more lifetime renters as interest rates rise and the housing market shifts.
Some refer to profits from real estate investments as “mailbox money”—checks that show up in your mailbox from your savvy real estate investments. But how can you increase these returns? The answer is simple—so […]
Why Location, Location, Location Begs Repeating in Multifamily Investing
Location: a word so nice we say it thrice. The saying Location, location, location is oft repeated in real estate—for good reason. As the money managing site The Balance puts it, “You can buy the right home in the wrong location. You can change the structure, remodel it or alter the home’s layout but, ordinarily, you cannot move it. It’s attached to the land.”
When buying a single-family home, you may think […]
There is a tried and true philosophy in residential real estate that declares, it’s best to target the worst home in the nicest neighborhood, and add value through renovations. Logic begs the question then, does this same idea apply to multifamily housing? Those looking for a strong, immediate ROI on their real estate investments may do well to look for older properties in desirable areas that may simply need upgrades or uncomplicated repairs. Through a quick, multifamily property flip, […]
Have you ever wondered how to value your commercial multifamily property? Here’s the good news: it’s relatively easy to calculate. As long as you have good operating data on your property, you have all you need.
The value of commercial multifamily real estate (5+ units) is largely derived from an income approach appraisal based on a simple formula for valuing commercial real estate:
Current Market Value = Capitalization Rate / Net Operating Income
Your operating data should include annual NOI (Net Operating […]
