The main reason for owning multifamily property has changed …
Until recently, the top 4 reasons for buying apartments were:
- Cash Flow
- Principle Reduction
- Tax Deferral
These reasons have flipped in order. Now, they are:
- Principle Reduction
- Tax Deferral
- Cash Flow (if there is any?!)
The new, overiding motivation for owning real estate is Equity Preservation!
Why the change? One reason … Artificiality
Walking and Talking … Cap Rates!
Cap Rates. You hear about them all the time, from people who specialize in investment real estate. They’ll says things like, “That property sold for a 6 cap,” or, “We’re looking for properties priced in the 9 to 10 cap range.” Today’s Walking and Talking podcast is all about Cap Rates!
Photo Courtesy of @istockphoto.com
Today, you will learn 5 things:
- What is a cap rate?
- The reason why so many people are often confused about cap rates.
- The best way to remember how to easily calculate a cap rate for any investment property.
- The five main factors that influence cap rates.
- Why you should beware that all cap rates are not created equal!
Hit Continue Reading and listen to the Audio:
Any author, screenwriter, or playwright will tell you that every story needs a hero. The hero is on a journey. Then, a crisis occurs; an enormous threat or challenge that the hero must defeat or overcome. Out of a cast of characters, emerges a guide; an ally that comes alongside to help the hero. There are always high stakes and a call to action resulting in a climatic outcome, which always ends in failure or success.
For a story to resonate with us, it must always have these elements. Because, well, that’s life!
- A Hero
- A Journey
- A Crisis
- A Guide
- High Stakes
- A Call to Action
- A Climactic Outcome
In this true-life story, you are the hero.
You might not think you’re a hero, because heroes do not always feel particularly heroic during their high school years. They haven’t even identified all of their super-powers yet! But, they do have super-powers. You do too. The problem is,
I will never forget the day I learned my first lesson in commercial real estate. It came shortly after I joined a team of 25 brokers at Coldwell Banker Commercial Real Estate. They ultimately became a who’s who of Columbus real estate that included Richard Schuen, Ed Joseph, John Hall, Don Matsanoff, Greg Schenk, Chuck Manofsky, Doug Goddard, Ted Hobson, Bob Matias, Benton Benalcazar and several others.
The Day I Learned About Walking and Talking
One of those brokers was Wayne Harer. Wayne played 10 years of minor league baseball for the Red Sox and Yankee organizations and actually won the
I recently released my new book, Bedford Falls.
Every time I gave a manuscript of Bedford Falls to a friend or colleague, they’d ask, “Why did you write a novel?” The setting of the story is the world of real estate in Columbus, Ohio – a place I know and love. But still, there are always trade-offs, and writing a novel takes a lot of time, energy, and focus. So, why did I write a novel?
I suppose the answer is, like so many of you in real estate, I like to connect.
Why do you …
- Organize golf outings,
- Establish real estate groups, and
- Launch so many charity events?
Because you are connectors. You bring people together. You gravitate towards being with others.
It’s time to reconnect! This makes for a good excuse to get together.
Over the last couple of years, when it was challenging to maintain relationships, I wrote Bedford Falls, with the idea that it would create a great opportunity to get together with friends and colleagues for breakfast, a cup of coffee, or who knows, maybe even a group-luncheon or two, where all of us can reconnect! I’m open to your suggestions!
That is why I wrote Bedford Falls, a novel.
The great success of the show, Yellowstone, tells us that millions of Americans still yearn for the great outdoors. For Kevin Costner it is the Dutton Ranch. For Ronald Reagan it was his Rancho del Cielo. It might be time for you to discover yours, because he beauty of the land and the mountains, the rivers and oceans, still resonates with our primal desire to be in touch with nature.
Rawhide! President Ronald Reagan loved working with his hands, and being outdoors. And, you can see from this photo, taken at Camp David in November of 1981, that he loved to ride horses.
Photo Courtesy of Ronald Reagan Library
“I’ve often said, there’s nothing better for the inside of a man, than the outside of a horse.”
– Ronald Reagan on many occasions.
Rancho del Cielo
This picture of Reagan was taken 7 months after the 70-year old entered George Washington University Hospital to have a would-be-assassin’s bullet removed from his chest. Horseback riding at Camp David was therapeutic for Ronald Reagan. But, Rancho del Cielo was his true sanctuary.
He called it his “Cathedral in the Sky” (Rancho del Cielo is Spanish for Sky’s Ranch, or Heaven’s Ranch). It is where he could sort out problems while riding his favorite seventeen-hands-high
My book, Single Page Life Plan for Realtors explains how you can extend single page planning to all of your important projects and ventures. Single Page Checklists are a ‘catch-all’ for special projects that you can review regularly to stay focused.
Click here to enroll in my online class, Buying the Apartment Next Door at 50% off (Coupon Code is Plan2022) and receive a signed copy of the book: https://bit.ly/3rqBquh
For example, the Single Page Checklist for Buying Apartments summarizes on a single page the 4-color, 6 page laminated flyer I created that explains:
I was in my office one day, when a real estate investor called me on the phone. He said, “Garry, I just had one of my tenants move out – and they took the refrigerator with them! They said it was theirs.” Uh oh.
They took the refrigerator!
I immediately called the seller, who explained that those particular tenants had previously sold their home, and so they had brought their own refrigerator with them. He had simply forgotten, and there was no mention of it in the lease.
Download 32 Questions PDF