Comments on: Buy an Apartment Building — With Warnings

By: Lani Clark Morand

Lani Clark Morand — Fri, 18 Jun 2010 21:59:06 +0000

Hi Ted; I’m enjoying many of your articles on apartment investing. Your writing style is clear, concise and informative — and so a pleasure to read! I especially appreciate your use of numbered points. I’m sure accuracy is important to you, so wanted to point out the “NOT” appeasr to be missing from Paragraph 4) “A large majority of the units … many subsidized renters can mean that the tenants are NOT gainfully employed.” Cheers!

By: Susan Zanzonico

Susan Zanzonico — Wed, 11 Feb 2009 03:33:18 +0000

The list is a good one and might seem just logical to some, but without experience a few of these points can be easily over looked.

>>And NEVER pay more than the building is worth in ROI. What other people see as Problems are only problems when they negatively affect your returns.

Thats an important point! Thanks Dike.

By: Dike Drummond

Dike Drummond — Tue, 10 Feb 2009 23:35:30 +0000

Before you go to the trouble of digging down to even this level of specifics on a given apartment property … we advise you to research the market to make darn sure you know what phase of the Market Cycle your location is in.

Market forces will determine much of your return in Commercial Property – you must be investing in a location which is in the right phase of the Market Cycle – before you even think about looking at individual properties.

This is a classic mistake of the residential investor trying to pick up an apartment building and not understanding the fundamentals of Commercial Property.

Learn market cycle theory first … then look for projects with upside in those favorable markets.

And NEVER pay more than the building is worth in ROI. What other people see as Problems are only problems when they negatively affect your returns.

My two cents,

By: Jason

Jason — Wed, 28 Jan 2009 04:37:32 +0000

I always though defects mean a price reduction?