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:
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:
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.
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:
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.
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
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.
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.
In my book, Single Page Life Plan, I explains how you can make a big change in your life, just by adding a few Coins to your day.
Photo courtesy of @iStockphoto.com
What are Coins?
Coins are those small things we can do every day to help make another person’s life better. Every day we wake up in the morning with a certain number of Coins in our hand that we can potentially spend.
To spend them wisely, we have to be:
Because here’s the thing … the Coins you don’t spend by the end of the day, are gone forever.
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:
Photo courtesy of @iStockphoto.com
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.