5/20/12 BP Newsletter: Pacing Your Investments, Increasing Profits, & Speeding Up New Deal Screenings
Hide thisYou can invest in multifamily through your IRA investment?
Tuesday, September 06
Just like you can invest in stocks, bonds, and mutual funds, you can also invest in multifamily real estate, tax deferred or tax free, using a self-directed IRA. From our experience, most people do not realize it is possible to generate long term cash flow and capital appreciation by investing in multifamily real estate within their retirement plan. I am also not talking about purchasing stock in a public REIT; I am talking about investing in tangible, income producing buildings with little to no debt. Once they become aware that real estate can be an IRA investment they realize the opportunity that is in front of them and the benefit of including cash flow real estate in their plan.
From our experience most people miss the opportunity to take advantage of multifamily real estate because of two main factors:
- They are simply not aware they can use IRA funds to invest.
- They don't know how to get involved.
That is where we come in. We take the time to educate investors on how multifamily real estate opportunities are located, analyzed, negotiated, financed, operated, and eventually sold.
Making an IRA investment in multifamily real estate is fairly simple. After deciding to invest, the first step is to open a self-directed IRA. This can be done in as little as two to three business days. Next, you will need to fund the IRA. This can be done by doing a simple rollover with no tax consequences (of course, please consult your CPA or tax professional for proper tax advice). This can be accomplished in as little as one day or could take up to three weeks depending on the company currently holding your funds. Once your account is funded it's now just a matter of filling-out a few more forms to transfer into the IRA investment tax deferred. It's that simple.
To learn more about IRA investment opportunities in multifamily real estate we encourage you to contact Maria Meyer at our office to see how easy it is to become a partner in our next project. In the last three years National REIS has raised close to $5,000,000 for various projects with over half of those dollars coming from investors utilizing their IRA to invest.
Christopher Urso
www.nationalreis.com
Rents up and expenses down for multifamily owners
Tuesday, August 23
This article is very interesting and explains how rental increases have been outpacing expense increases for multifamily operators. A huge part of an owner’s expense is upon turnover, and that has actually decreased by almost 8%: “Another spot of good news for landlords—and wholly reasonable, considering the state of the economy—was that three of the four building types examined experienced a decrease in resident turnover in 2010 compared with a year earlier. Turnover for low-rise buildings with 25-plus units declined 8.7 percent to 40.7 percent; that for elevator buildings decreased 8.2 percent to 34.4 percent; and that for garden buildings dipped 1.3 percent to 53 percent. By comparison, turnover in low-rise buildings with 12 to 24 units rose a scant 0.5 percent year-over-year.” You can view the whole article here
Chris Urso
Principal
www.nationalreis.com
So what's driving demand for apartments
Sunday, August 21
Many factors are driving demand, starting with the demographic surge of 20 to 34-year-olds, who are typically renters. This increasing population also has absorbed most of the job growth during the economic recovery and no longer relates to the "American Dream" of homeownership. This demographic is more likely to transfer jobs every few years and even relocate therefore they do not want the ball and chain of a house to hold them back. In general, very few renters are leaving the mulit-family market to buy homes due to weak job security and a shaky housing market. This means that new tenants typically boost the already impr1essive occupancy rates since existing tenants are not moving out. The continued foreclosure crisis and declining homeownership rate are also fueling demand for rentals, every 1% decline in homeownership represent 1,300,000 people entering the rental market. The odds are in favor of the "landlord" today.Foreclosures continue to lag on housing but...
Tuesday, August 16
As foreclosure rates continue to reach historic levels http://www.housingwire.com/2011/08/16/u-s-mortgage-delinquency-rate-grew-2-4-in-july the demand for multifamily apartments continues to increase at a tremendous rate. While this is bad news for homeowners this is excellent news for landlords and apartment operators. Those properties located in safe neighborhoods that can provide prospective tenants with a clean and safe community at an affordable price will reap the benefits of high occupancy and rent growth for years to come.
Christopher Urso
www.nationalreis.com
Quick Tip to Get Brokers on Your Side
Friday, August 12
Quick tip to get a broker on your side....buy him lunch! Went to lunch with the Broker representing the bank on the 74 Unit deal we are going to bid on and i picked up the tab. his response "Chris no one has bought me lunch in the last 5 years, thank you so much. I look forward to seeing you guys get this deal and many more." Its the little things that make a difference in today's world. Stick to the basics.
Chris Urso
Principal
Importance of Understanding Your Competition
Thursday, August 11
When analyzing a potential multifamily deal one quick tip is to make sure you do a rent study. It is always important to understand what rent your competition is asking for similar units and also what concessions that they are offering. A big mistake many novice investors make is taking the broker's word for it when it comes to market rents, ALWAYS verify the numbers. I often visit surrounding properties and ask to view available units as a potential renter. This will give you the best of idea of what you can do with your potential investment.
To your success,
Christopher Urso
Principal
National REIS
www.nationalreis.com
Chris Urso
National Real Estate Investment Solutions
Real Estate Consultant
Huntington, New York
| Website: | http://www.nationalreis.com |
| Phone: | 5162807674 |
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