Why Investors Buy Apartments in Today’s Artificial Market

Multifamily flyer photo copy

The main reason for owning multifamily property has changed …

Since the tax change of 1986, until recently, the top 4 reasons for buying apartments were:

  • Cash Flow
  • Appreciation
  • Principle Reduction
  • Tax Deferral

These reasons have flipped in order. Now, they are:

  • Appreciation
  • 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

4 Benefits of Economic Prosperity

Photo courtesy of iStockphoto.com

Smiling mother showing young daughter how to plant flowers
Excerpt from Lead Like Reagan
 

Live prosperously so that others may more prosperously live

One day, while addressing a class of 8th graders about the benefits of living in a prosperous economic system, I asked the students, “Can you think of any reasons why it might be a good thing that doctors, for instance, are able to earn a lot of money?”

What is a Cap Rate? [Podcast]

Walking and Talking … Cap Rates!

(Podcast Transcript)

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!

What is a Cap Rate? - Beautiful business woman with question mark above the head
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:

Closing Checklist for Apartments

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.

Closing checklist for Apartments

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:

The Five Elements of a Single Page Life Plan

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
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.

To see an example of a Single Page Life Plan™ that has already been created, click here:

Single Page Checklist for Buying Apartments

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.

A checklist for Buying Apartments

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:

Where is Your Rancho del Cielo?

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.

10/10/1981 President Reagan horseback riding at Camp David Maryland. Attached to a blog post by Garrett Scanlon: Where is your Rancho del Cielo?

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.

Excerpt from Lead Like Reagan – Principles of Dynamic Leadership

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

“I Wish I Had Smoked More Cigarettes!”

When I speak to young adults in 8th grade or in high school, I make them this promise:

Cover of Seeing Past Friday Night

My 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.

32 Questions To Ask When Buying Apartments

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.

Image of a Multifamily investment property checklist for buyers of apartments

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

5 Reasons Why We Embrace Chaos

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 of a business woman juggling picutres of a house, a soccer ball, a financial graph, a wallet full of dollars, a calendar. She appears overwhelmed. Chaos is not Your Friend.
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.