How To Succeed in Real Estate – One Small Win At a Time
Many newbies fail to reach their goals because they give up. The solution? Recognize and celebrate the smaller milestones along the way.
The Checklist That’ll Help You Save Big During Due Diligence
You have an apartment building under contract, which is awesome. Performing due diligence is an exciting part of the buying process because it means you successfully negotiated the deal (which is not easy to do!) and are now ready to start due diligence to determine if it’s something you want to go through with. But […]
How to Use a Master Lease to Acquire Commercial Real Estate With No Money Down
The vast majority of commercial real estate deals are “conventional” with regards to financing, meaning they are financed with a commercial lender requiring 20% – 30% down.
How to Know It’s Time to Walk Away From an Apartment Building Deal
But many times you DO uncover things during due diligence that you weren’t told about upfront or that you just didn’t know. Here are 4 tips to help you figure out when it’s time to walk away.
How To Get $5,000 Per Month In Passive Income (How Many Units Do Will You Need?)
Here’s a step-by-step methodology how to answer this followed by a more detailed case study to illustrate the concept.
Estimating Acquisition and Closing Costs for Apartment Building Deals
Many beginning commercial real estate investors are shocked at how much it costs to perform due diligence for a deal and how high the closing costs are. While the latter are usually paid for at closing, the former must be paid with hard cash while doing due diligence. In the video below, I review the […]
How to Fine Tune the P&L to Determine the Maximum Purchase Price for an Apartment Building Investment
Once an asset is stabilized, a good rule of thumb is to assume that rent will increase by 3% as well as the expenses. The Syndicated Deal Analyzer uses this as its default in the 10 year profit and loss (P&L) projection. Sometimes, however, you will want to fine-tune the P&L. For example, let’s assume […]
How to Fine Tune the P&L to Determine the Maximum Purchase Price for an Apartment Building Investment
Once an asset is stabilized, a good rule of thumb is to assume that rent will increase by 3% as well as the expenses. The Syndicated Deal Analyzer uses this as its default in the 10 year profit and loss (P&L) projection. Sometimes, however, you will want to fine-tune the P&L. For example, let’s assume […]
MB 003: How to Analyze Apartment Building Deals
In this episode, my good friend Jonathan Mickles asks me a 101 questions about analyzing apartment building investing deals, and how to do so as quickly as possible. We talk about investment criteria, returns, the 50% rule, how to value commercial real estate, and how to determine the most you should pay for an apartment […]
Power Negotiating Apartment Building Deals with Side-by-Side Scenarios
When you get a deal in from your broker, the marketing package usually provides actual financials as well as “pro forma” financials, i.e. the way the building should perform if it were managed perfectly. Most often, the asking price is based on the pro-forma net operating income at the prevailing cap rate for that market. […]