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.
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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!
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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:
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.
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
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
- 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