Here are the two questions you've got to ask yourself when you're analyzing any deal.
When I get into the Cash Flow Analyzer software and receive the offering memorandum from students, I start looking at it and call them up. As soon as we discuss it, they can't even answer the first question. If they can't answer the first question, most likely they can't even get to the second question. So let me tell you what it is that I'm talking about.
The first question is, what's my exit strategy? Why am I buying this property? What is it about this property that excites me? If I'm going to sit in front of a group of...
by Charles Dobens on November 16, 2019
The way I teach multifamily is different than everything else, everyone else. Because what I say is, multifamily is not real estate. It is not real estate. Let me put it to you this way.
Let's say Dave owns a 100 apartment complex built in 1986. It has 60 one-bedrooms, 40 two-bedrooms, it has pitched roofs, separate entrances, individually metered. Great property. And Link owns an identical property across the street. Absolutely identical, built by the same builder. The fact that they're across the street has absolutely no meaning whatsoever on the difference in any value, okay? Location is the same. Whose property is more valuable? Link's, or Dave's?
So we're talking about real estate here guys. So, they're right across the street from each other, which one's more...
Understanding Multifamily Lingo
by Charles Dobens on February 17th, 2020
You need to know, in your calculations for determining the cost of this value add proposition, what is the absorption rate in that particular community. That's the amount of time it takes for a new unit to be absorbed into the market and by a tenant.
You have to determine how long it takes for a new unit to be leased up by another tenant. If it sits on the market for four months or if it is showing a four month absorption rate, you've got to figure that into your calculation.
Once the deal is closed and once...