Multifamily Real Estate Investing Rules of Thumb
- 1.5 hours on-demand video
- 24 downloadable resources
- Full lifetime access
- Access on mobile and TV
- Certificate of Completion
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- Analyze deals and investing opportunities with more confidence and accuracy.
- Understand Cap Rates and how to use them in their investment strategy.
- Have much greater confidence in doing due diligence for an investment.
- Have an accurate investment goal through cash on cash returns.
- Understand property management costs and savings.
- Included with this course is the Rule Of Thumb ebook. We highly recommend that students download this book, print it out and follow the course alongside the Rules Of Thumb ebook.
This course lays out our guidelines and parameters for a great deal. Multifamily Real Estate Investing Strategist and Consultant, Gino Barbaro will help you get a strong understanding of cap rates and cash on cash returns, vital for beginning investors to learn about in order to correctly analyze a deal.
What formulas should you use? In this course, you will be able to analyze a deal faster and with higher accuracy using our Rules of Thumb.
- Cap Rates: What is a cap rate, and how will you best use them in your investment strategy?
- Cash on Cash Return: We will detail the return we strive for with our investments and help you define yours? (hint: 10%)
- Debt Coverage Ratio: What ratio will your bank look for when deciding whether to provide your business with financing?
- Management Fees: What are the going rates to manage your properties?
- This course is ideal for beginner and seasoned real estate investors looking to get a strong understanding of Multifamily Real Estate Investing.
This book lays out our guidelines and parameters for a good deal. Here we discuss cap rates and cash on cash returns that we strive for. It is vital for beginning investors to learn how to correctly analyze a deal.
What formulas should I use? You will be able to analyze a deal quicker and more accurately using our Rules of Thumb. What are some of our rules?
○ Cap Rates: What is a cap rate, and how do investors use them?
○ Cash on Cash Return: What is our return that we strive for? (hint: 10%)
○ Debt Coverage Ratio: What ratio does a bank look for when deciding whether to provide financing?
○ Management Fees: What are the going rates to manage a property
Once you learn the basic rules of thumb, you will become more confident in analyzing deals, going through the due diligence phase, and putting in offers that will land you deals. You will also learn how to manage your property more effectively.
This is a very important metric that banks use to decide whether to finance your deal. Find out what the banks are looking for and see what Jake and Gino strive for. This formula will show you if your property is generating enough income to pay the mortgage and the bills.
Capital Expenditure is one of those rules that many investors are confused by and tend to neglect. Let us show you how to calculate cap ex and give you examples why you need to set up a capital expenditure account. Don’t make the same mistake that Jake and I made, almost sidetracking our investing careers.
Mortgage Points are often confused with origination points. So, what is a loan point and should you consider points when financing a property? We will discuss origination points and show you how to lower the origination fee on a loan.
As far and Jake and Gino are concerned, knowing your management fees are among the most important elements of running a successful multifamily business. Knowing what management companies charge, and knowing if you should hire a management company or self-manage. We let you decide.
GRM, also known as Gross Rent Multiplier is a quick calculation to estimate a property’s value. Although it is not a very accurate calculation, it shows us if the property is vastly under or over priced and leads us to analyze the property more in depth.
How to Hold your real estate is a critical Rule of Thumb, and investors vary widely on the type of entity they use. Some investors find it wise to hold real estate in their personal names, and we will show you the benefits of creating an LLC to protect yourself.
Buy on Actuals is a mantra of Jake and Gino. This quick video will discuss what a pro-forma is, what it’s used for, and why you should not purchase a property with pro-forma numbers. ONLY use the actual performance of the property.