So many of have heard the term “Value add” or something along that line but what does that real mean and how is that accomplished? That is the question here. When we say “Value Add” as it related to an apartment building we are talking about increasing the how much the property is worth….If you […]
Archive | Basics
What makes a good market to buy apartments in? Why do we pick the markets we do?
Where do we buy apartments in? What makes a good or what makes for a bad market to buy in? – to These are some common questions people ask when they start to get interested apartment building investing. You really want to stack the deck in your favor when buying an apartment building by purchasing in […]
Commercial Real Estate….What is it? How does it differ from traditional investments?
What is commercial property? It’s a broad term used to describe property used to generate a profit, such as office buildings, industrial property, medical centers, hotels, malls, farmland, apartment buildings, and warehouses. Any apartment building is usually considered to be a commercial property if it is 5 units or more. 1-4 units are still considered […]
Calculating “Average Annual Returns” in one of our projects
So some of are wondering how is the “Average Annual Return” calculated. In the example on “Cash on Cash” return…we calculated this based on annual return on the monies invested, yet on the line below it, it shows a much higher “Average Annual Return” This is calculated by taking into account the profit that is […]
What is “Cash on Cash Return”? How is it calculated?
What is “cash on cash return” and how do we calculate it? When I first started investing in real estate, allot of people threw around the term, “Cash on Cash” return. I had a vague idea what it was but never knew exactly how they came up with these figures. It’s actually very simple. It […]
What is a “CAP RATE” ?
Let’s talk about CAP Rate. What is a CAP RATE? In its simplest form, Cap Rate is the return on your investment if you had paid all cash for your property… I’ll give you an example… Let’s say you have a property and you paid 1 million dollars, all cash. And this property generates $100,000 […]