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!
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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:
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
A friend of mine once said, “Chaos is my friend!” While he was kidding, I could sense that there was a part of him that relished multitasking a hundred things at the same time. It was almost like a game for him; a game he thought he played well.
Photo courtesy of istockphoto.com
Chaos is not Your friend!
One of the main reasons people avoid creating a life plan is because they have become comfortable with chaos. This manifests itself in 5 different ways.
It has been said by many people, in a variety of ways that people who don’t care where they are going, don’t need a road map. The rest of us, however, recognize the value of adding direction to our lives. Of setting a course that aims us towards our dreams and aspirations.You are unique! Plan accordingly!
- CEO’s need a business plan,
- Coaches need a game plan,
- Builders need an architectural plan,
- Pilots need a flight plan,
- Leaders need a life plan!
You need a Single Page Life Plan!
A Single Page Life Page is fast, simple, and life-changing. It is personal to you. Choose:
- A Mission Statement that you want to achieve,
- Life Categories that give focus,
- Action Steps that keep you on track
- Coins you can spend
- Attitudes you want to maintain,
- Potholes you need to avoid, and
- Skills you want to promote.
Avoid the Clutter! Priorities have to earn their way to page one!
Peripheries are not priorities. Peripheries in your life have to earn their way to page one. Until then, they are just distractions; they are clutter.
A closing checklist for apartments is essential for staying organized at a real estate closing for multifamily property. Attached is one I use when buying or selling apartments in Columbus, Ohio.
This list, that you can download here, does not include everything that you will need for your closing. That depends on your local area. For instance, if you are closing on multifamily investment property in Manhattan, you will be concerned with a host of other considerations at the time of the closing.
However, no matter where you buy property, it is essential that you make sure of at least one thing:
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, Tom McGarity and several others.
Copyright 2014 Ballylongford Books, LLC
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
It has been said, in a lot of clever ways, that people who do not care where they are going, don’t need a map. But CEO’s need a business plan, coaches need a game plan, pilots need a flight plan, and leaders need a life plan. Here are 5 things to include in yours …
Single Page Life Plan™ 2013 Ballylongford Books, LLC
The Five Elements of a Single Page Life Plan™:
1. Mission or Vision Statement:
This is the overarching vision you have for your life. All other parts of your plan synchronize with this.
2. Life Categories:
Your Life Categories are the six major highways that lead a path towards your Vision Statement. These Life Categories are the most vital aspects of your life.
If you knew 10 years from now that you’d be hit by a meteorite , how would you spend those 10 years? Building an anti-meteor device, of course!
Hoba Meteorite (this 60 ton meteorite, in the Otjozondjupa Region of Namibia, is the largest meteorite in a single piece, known on the earth’s surface) Courtesy iStockphoto.com
Your Mission (or Vision) Statement
Pretending that we might not live forever can be a motivation for creating a Single Page Life Plan©; for adding some intentionality to our lives. A good question to ask ourselves is this: A decade from now, how would I want somebody to describe that period of my life? What must I focus on for this to happen?
40 Words or Less! Some Examples:
You make all of the choices when creating your life plan. It is unique to you. Your Vision Statement is the overarching purpose you see for your life. There is no right or wrong answer as long as it resonates with where you want to go. But, to create a laser-like focus, keep your Vision Statement short! 40 words or less.
For some brainstorming help, here are some examples …
When I speak to young adults in 8th grade or in high school, I make them this promise:
Nobody ever looks back on their high school or college years and says …
“I wish I had smoked more cigarettes. I could be up to a pack-a-day smoker by now!”
“I wish I had spent more nights, staying out drinking ’til 2:00 am in the morning.”
“I wish I had purchased more drugs while in school.”
They don’t. And you won’t either.
My book, Single Page Life Plan 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.
Copyright 2013 Ballylongford Books, LLC
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:
What they all have in common. This was what I wanted to know. In my first book, Walking and Talking – 57 Stories of Success and Humor in the Real Estate World of Business, I recounted stories from some of the top real estate professionals in the Midwest. After observing their careers and listening to their stories, I asked myself this: Other than their sheer success, what do all of these winners in real estate have in common? This is what I learned:
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4 Characteristics of Top Real Estate Pros …
1. They create structure in an unstructured environment.
Real estate is not your typical 9 to 5 job, where opportunities are clearly identified and day-to-day responsibilities are well-defined. It is up to the real estate professional to identify the problems and opportunities; to set a plan of action that will bring success. They are not told how to allocate their time, or which deals to pursue or ignore.
The successful ones create a great framework for activity.