Discover this podcast and so much more

Podcasts are free to enjoy without a subscription. We also offer ebooks, audiobooks, and so much more for just $11.99/month.

E127: Single Family vs Multifamily Part 4: Speed to Scale & Ability to Increase Value

E127: Single Family vs Multifamily Part 4: Speed to Scale & Ability to Increase Value

FromThe Investor Mindset - Name Your Number Show [$]


E127: Single Family vs Multifamily Part 4: Speed to Scale & Ability to Increase Value

FromThe Investor Mindset - Name Your Number Show [$]

ratings:
Length:
16 minutes
Released:
Jun 29, 2020
Format:
Podcast episode

Description

When we talk about single family, we're talking about anything in the residential space, typically anything under five units, and multifamily refers to over 100 units or more. This week we're wrapping up our 4 part series on single family vs multi family and diving into: the benefits of single and multifamily, how these asset classes are valued and how quickly you can scale up your portfolio. KEY TAKEAWAYS1. Commercial property is based on NOI (Net Operating Income) which is net operating income minus expenses. You can increase the value of the property by decreasing expenses or increasing the income of the property. 2. If you decrease the expenses of a commercial property by $1 at a capitalization rate of 5% then the value of that property goes up by $20 by every $1 earnt or saved. 3. Capitalization Rate - The annual rate of return on a commercial property bought with 100% cash. Example: A 5 cap equals a 5% return. 4. You must focus on due diligence. It can be harder to carry out proper due diligence on a single family property and just buy a commercial block. 5. With single family you can renovate a property and sell it to a homeowner who will pay the highest price, plus you can manage the property to your liking. 6. If you're looking for control, then go the single family route. If you want to be a passive investor, then go the multi family route.  LINKSLearn more about investing with Steven at https://theinvestormindset.com/invest 
Released:
Jun 29, 2020
Format:
Podcast episode

Titles in the series (100)

What does it take to succeed when others fail? We explore the stories on Investing that you don’t often hear: The trials and challenges that lead to success and the Mindset it takes to make it. We’ll learn from some of the best investors and entrepreneurs, learning through fire-walking their experiences so we can each setup up our game and be our best self. We focus 80% on the motivation & mindset that leads to success, and 20% on the investing strategies & tactics that get us there. About The Host: Steven Pesavento Real Estate Investors & Entrepreneur has always been obsessed with understanding how we can think better, how we can be better and how we can do better. He fought against those limiting beliefs, that held him back and jumped in to Real Estate with no experience. By modeling the mindset & actions of leaders he looked up to, his Real Estate investing his business exploded, buying 150 houses in his first two years, over $22 Million in real estate transactions. Personal development for real estate investors. Model the top real estate investors, house flippers, multifamily syndicators, wholesalers and landlords. We invite guests from all industries to share their mindset with our incredible community. Join the insider club at: https://TheInvestorMindset.com IG @Investormindset https://Facebook.com/theinvestormindset