My Realty Gains
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Some Unique Ways to Source Off-Market Apartment Deals
An on-market sale is the most popular form of apartment transaction. An apartment owner lists their property with a broker, the broker markets the deal to the general public, and the deal is awarded to the highest bidder after a bidding war. Off-market transactions, in which the apartment is bought directly from the owner without the use of a middleman, are rare.
By My Realty Gains4 years ago in Lifehack
Top 10 Tips for Underwriting a Value-Add Apartment Community (Part-1)
Here are Top 10 tips for underwriting a value-add apartment community. 1- Setting an Offer Price You’re not supposed to look at how the property is currently operating, determine what the net operating income is, and then base your purchase price off that. You also do not want to set the offer price based on what it’s going to be once it’s stabilized. Instead, you need to consider the combination of the two. How the property is currently operating is going to determine what your business plan is to stabilize it and how long it’s going to take and that’ll decide how the property will operate say at month 12 or 18 or even 24. You also want to know how long you’re going to be holding the property for. It may be 5 years, or 7 years, or even 10 years, depending on the capabilities of the property. Time projection is extremely important. There might be deals that are accustomed to do well on a 7–10-year projection, and then you might be missing out on short-term opportunities. Breaking out this time monthly, and later adding these months to determine what the annualized cash-on-cash return, and what the IRR is going to be, based off of that exit is going to be unprecedentedly profitable. Essentially, you’re creating a 5-7-10 years projection going from how it’s currently operating, to how it’s going to stabilize, and then continuing to operate at the stabilization, with the annual rent increases and expense increases also determining when you’re going to sell and how much you will make when you sell because that’s also a big chunk of the profit you’re going to make and then you can determine the cash-on-cash return. All this will determine the returns percentage so you don’t have to worry to meet the return goals. This is how you’re going to set a competitive offer price so you do not end up low-balling or high-balling.
By My Realty Gains5 years ago in Journal
Multifamily Trends to watch out for 2021
The pandemic left many people unemployed, the stock market fluctuated wildly all year and all of us faced many challenges with the disruption of normal life. The multifamily investors are therefore now ready to explore the new opportunities that might come their way this year. Given below are some multifamily trends to watch for this year.
By My Realty Gains5 years ago in Trader
Passive vs Active Investing in Real-Estate
Here are four factors that one should consider before choosing their path of investing. 1. Control The level of control you want decides whether you would want to be a passive investor or an active investor. As a passive investor, you lay back and relax while all the cumbersome tasks of putting your money to use efficiently will be done by an experienced sponsor/syndicator you choose. You are a limited partner in the deal but the returns that you receive are constant. When you give up control you’re putting a lot of trust into the sponsor and their team to execute on the business plan where they entirely manage the commercial real estate project.
By My Realty Gains5 years ago in Trader
