Posts tagged as:

apartment investing

Commercial Real Estate

The Top Ten Reasons Why Now is a Great Time to Buy an Apartment Building

by Ted Karsch | September 1, 2009
  1. Prices are Falling — Prices for apartment buildings are steadily dropping. Many apartment building owners paid way too much for their properties over the past few years and now their properties are worth less than what they owe. Apartment buildings are starting to show up as foreclosures across the country and it is further pressuring prices to the downside.
  2. Forced Appreciation — You don’t have to wait for real estate prices to go back up to increase the value of your apartment building investment. You can increase the value of you apartment building by increasing the rents, cutting your expenses or by making physical improvements on the property.
  3. Less Competition — Many investors are under the false impression that owning an apartment building is more difficult than owning single family homes, therefore their is less competition for prime properties.
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Commentary

Is Multifamily Immune from Commercial Real Estate Decline?

by Ted Karsch | July 1, 2009

While the turmoil in the residential real estate markets continues to make headlines, some analysts and prognosticators are questioning whether we will see the same kind of meltdown and mass foreclosures in the commercial real estate side of the industry. And the general consensus of those quoted in various news services and website across [...]

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Commentary

How to Find Commercial Real Estate Sellers

by Ted Karsch | March 24, 2009

There are many ways that investors use to find motivated sellers, however, what I see happening many times with beginners is that they start looking for properties to purchase before they thoroughly understand how to identify a truly profitable opportunity. Here are my recommendations for how to begin learning about multifamily investing and then [...]

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Commercial Real Estate

Apartment Investing — Finding Value in Cosmetic Repairs

by Ted Karsch | February 10, 2009

The most important aspect of  apartment investing  is having the ability to locate an apartment building that offers the potential to show you a profitable return on your investment. It is nearly impossible to realize a profit on an apartment if you pay too much because when you pay an inordinate amount to purchase the [...]

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Commercial Real Estate

Buy Apartment Buildings — Find Sellers in Public Records

by Ted Karsch | January 20, 2009

Some of the best deals to be had for the buyer of apartment building can be had by ignoring real estate listings and going directly to the source. However, locating and making contact with apartment building owners actually takes some work. The work is not hard or time-consuming if you know where and how to [...]

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Commercial Real Estate

Investing in Apartments — How Location Effects Market Rents

by Ted Karsch | January 13, 2009

There is no hard and fast scientific formula to determine what market rents should be for an apartment building investment. Instead the apartment building owner should rely on less scientific but equally important factors such as amenities and location. The owners frame of reference needs to switch from owner to renter to truly understand the [...]

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Commentary

Apartment Building Investors Versus Apartment Building Speculators

by Ted Karsch | September 23, 2008

Investing, in my opinion, should be treated like a business.
It requires a product which produces an income or cash flow larger then the expenditures necessary to sell the product. Therefore, it should produce a profit for the manager or business owner.
Unfortunately, many investors are actually not investors at all in the business sense of [...]

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Commentary

Impact of the Imminent Failure of Freddie Mac and Fannie Mae and the Decline in Availability of Rental Properties on Apartment Building Investors

by Ted Karsch | August 26, 2008

The imminent failure of both Freddie Mac and Fannie Mae has already begun to have a detrimental impact on the larger US economy and the ability of home buyers to finance the purchase of a new home.
This is an unfortunate circumstance for many young families who may not be able to qualify for a mortgage [...]

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Commercial Real Estate

Buy an Apartment Building in 4 Steps

by Ted Karsch | August 20, 2008

The first purchase of an apartment building can seem like an overwhelming endeavor for the buyer. There is a lot of information and terminology that is suddenly thrust upon the first time investor and chances are that the new investor doesn’t have the knowledge base to accurately sift through the information to obtain and utilize [...]

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Commercial Real Estate

Apartment Investing – A Look at Five Year Investment Returns

by Ted Karsch | August 12, 2008

Let’s take a look at some of the actual returns for a small apartment building investment over a period of five years. Whenever you are making projections into the future concerning investment returns it is always necessary to make some assumptions. In this case we will keep our assumptions very conservative and well in line with historical averages.

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Financing Real Estate

Buy an Apartment Building — How to Structure Your Offer

by Ted Karsch | June 30, 2008

As I stress time and time again to new apartment building investors, before making an offer on any apartment building real estate property be sure that the investment will be a profitable one. Banks and commercial mortgage lenders will only lend money on an apartment building that has a Debt Service Coverage Ratio of [...]

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Commercial Real Estate

Apartment Building Loans — Should You Do It Yourself?

by Ted Karsch | May 19, 2008

With the recent melt down of the sub prime mortgage market banks are tightening up their lending practices in the commercial sector of the finance industry as well as the residential. What this means for the apartment building investor is that he or she needs to make sure that he is working with a [...]

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Commercial Real Estate

Determining the Value of an Apartment Building Investment Using Cap Rates

by Ted Karsch | March 3, 2008

Determining the value of an apartment building investment is one of the greatest difficulties that many new commercial real estate investors face.
Most people who invest in apartments have some experience investing in other types of real estate, typically residential homes or duplexes and triplexes. The issue that new investors face is the [...]

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