Wrapping it up: Cap Rates, Comps and Offer Prices
Saturday, July 06
Well, we’ve reached week 10 and the end of our CYA Series. We’ve discussed why you need to review the numbers presented to you, various items to watch out for on the revenue side and the big-ticket items on the expense side. At this point, I hope you’re taking a P&L presented by an agent and ...
Repairs & Maintenance: Past, Present and Future
Tuesday, July 02
Real estate is a depreciable asset. Things will break, wear-out or become obsolete over time. That’s to be expected. Knowing this will happen is important. Knowing how to account for it when underwriting is critical.There are three types of repairs you need to be aware of when assessing a new inv...
Management Fees: Don't Work for Free
Friday, June 28
Purchasing an apartment complex takes a lot of time and work. However, this time is nothing compared to the time it takes to properly manage that property once you own it! With three weeks left in the CYA Series, we’re going to look at a second variable expense in your multifamily Profit & Lo...
Utilities: More that a crappy space in Monopoly
Sunday, June 16
We’ve gone through two fixed expenses for a multifamily property - real estate taxes and insurance. Now we’re going to look at the first of the variable expenses…utilities.When doing an initial review of an opportunity, your first pass, especially in a new market, will be a smell test of the numb...
Insurance: Cover Your...Asset
Monday, June 10
Last week we were talking about real estate taxes, which is one of the more straightforward expense items. This week we’re looking at the insurance line item. Unlike taxes, you can’t simply go online to check the rates, current coverage for the seller or what coverage will be needed for you. Furt...
Real Estate Taxes...Watch for that Reassessment!
Monday, June 03
Last week, we finished the top half of the Profit & Loss statement and our review of the revenue portion of the underwriting. This week we start on the bottom half; the expenses. We’re starting with what is typically one of largest, and seemingly most straightforward expense line items – Real...