New supply, changing demographics & rising rates are impacting the multifamily market. Michael & his guests share an inside look at sector. Hear about opportunities in the current market for acquisitions, development, financing, technology & improving operations.
In Friday commercial real estate news – we’ll give you a look at the 10 must reads for CRE, what professional CRE players can learn about investing from athletes, how foreign investment in U.S. commercial real estate remains strong, and so much more! Read More
In Wednesday’s commercial real estate news – we’ll give you a look at what an AT&T Time Warner merger could mean for CRE, why Fannie and Freddie should hold billions in capital, the over $1 billion CRE properties in Romania, and so much more. Read More
The commercial real estate industry is constantly changing and before you know it the knowledge you have of the market can be completely outdated and unhelpful when it comes to making educated business decisions. To help keep you up-to-date with the latest trends in commercial real estate we’ve looked to our friends at GlobeSt.com for their insight on the current trends in this ever changing industry. Read More
Since the imploding of the Financial Crisis back in 2009, banks and other financial lending institutions have been weary when it comes to lending money to Commercial Real Estate investors. And to be honest…. we don’t blame them, since “CRE loans were in part responsible for the near-collapse of the financial system during the Financial Crisis,” according to Business Insider.
In Tuesday’s commercial real estate news – we’ll give you a look at the commercial real estate investment trust that bought Toronto trophy asset, whether REITs are oversold, how GreenOak raises $1.55 billion for real estate deals in the US, and so much more. Read More
In Monday’s commercial real estate news – we’ll give you a look at the $25 ml PE commercial real estate fund, the 4 ways to take care of multi-family investors, the SFR investors that are filling the pipeline with new development, and so much more. Read More
Student housing performance across the country continues to grow, while developers continue to open new properties near schools and universities at consistent rates.
The popularity among the new trend that is Modular is sweeping the nation, especially in areas that were recently hit by natural disasters such as wildfires and hurricanes. Modular is providing these areas the ability to rebuild their communities in a fraction of the time. By building modular buildings developers have been able to save upwards of 25% of the construction time versus what is typically seen with conventional construction.
Multifamily housing will never be the same and that’s not a bad thing. Trends come and go but developers and investors should be aware of them in order to continue to attract tenants, especially this younger generation of renters who desire more from their living situation. Read More
Fannie Mae’s Multifamily Green Financing is allowing developers and investors the opportunity to “enhance the financial performance, environmental sustainability, and quality of the country’s multifamily housing stock.” The latest trend in environmentally friendly and conscious living amongst a younger generation of consumers has brought forth the same trend in the commercial real estate world and financial institutions like Fannie Mae are acknowledging the trend and its benefits.
In Thursday’s commercial real estate news – we’ll give you a look at the state of UK commercial real estate lending, the future of Nordstrom, and so much more. Read More
What many new commercial brokers don’t know about commercial real estate is that there is actually a great deal of number crunching involved with a commercial real estate transaction. If math isn’t your strongest suit, then you might be hesitant to try to do any or all calculations yourself. Read More
CALLING ALL INVESTORS, especially those of you who are new to investing and are looking into purchasing your first rental property. There is a ton of paperwork that comes along with any commercial real estate transaction, but what you may not know is that there are 10 very important seller documents you may have to review when it comes to buying a rental property.
There are a number of new and innovative technologies that are hitting the multi-family property market. These new and improved gadgets are changing the way multi-family residents live their everyday lives; not necessarily by creating brand new technologies but taking old systems and applying a completely new spin on them. Allowing multi-family properties and its residents the ability to adapt their living arrangements to this new and evolving world that is technology.
In Wednesday’s commercial real estate news – we’ll give you a look at how CRE is critical to improving local communities, how European banks are loading up on real estate, and so much more. Read More
KTGY’s working spaces become “create” spaces, inspired from the co-working trend that is popular among young professionals today. Co-working spaces from companies like WeWork, Cover, and NeueHouse not only create an engaging and unique working environment, but they also host a number of work related events like; book talks, lectures, workshops, and more. KTGY plans on creating a space that takes this co-working concept and incorporates a campus-style vibe that helps reinforces collaboration and engagement among its residents. Read More
Enhancing the ways in which tenants experience everyday life; from eating, sleeping, working, and playing, KTGY Architecture + Planning Tysons has been able to revolutionize apartment living for future tenants. Designing “The Apartment of the Future,” KTGY has been able to tap into the basic human needs of residents and create a living and working space that is more than just functional or expected.
We are constantly surrounded by information and data, but not many of us, especially in the commercial real estate industry know how to make use of all the data out there. Especially because there is a ton of data that we’re failing to collect right within our own properties. Read More
Buying a home in the current market is nearly impossible, turning many hopefuls to rent instead, but even then renting in some big cities has unfortunately become an unrealistic reality. That is all about to change with many developers around the world adopting a whole new perspective on what not only works for renters but what works for the environment as well.
As the multi-family sector of commercial real estate continues to grow the demand for these types of properties become more and more attractive to real estate investors who want to expand their portfolios and generate a nice steady flow of additional income. But if you have multiple properties in your portfolio, managing them all can become increasingly difficult and time consuming for any one person. Read More
Michael Blank has written some excellent articles regarding investing in Multifamily & Apartments. His focus is buying apartment buildings by raising money from private individuals. He’s been investing in residential and multifamily real estate since 2005. He is the creator of the Syndicated Deal Analyzer and the eBook “The Secret to Raising Money to Buy Your First Apartment Building”.
Check out his articles at: https://www.biggerpockets.com/renewsblog/author/michaelblank/
Are you an investor considering whether or not it is time to sell your apartment property? The decision isn’t as easy as one may think, there is a lot to consider before taking that big leap. Today we’ll visit a video by BiggerPockets’, Michael Blank. Michael will take us through his decision process with one of his own properties.
Which of our 3 different scenarios will allow us to maximize our overall returns? In order to answer this question we should consider these 4 questions:
The best way to answer these questions it to look at the Internal Rate of Return or IRR for each scenario; selling now, selling in a few years or refinancing. Calculating an IRR can be confusing to calculate on your own, but there are a number of tools that can aid in calculating this number, especially if you’re new to investing and the different metrics involved in commercial real estate.
Internal Rate of Return takes into consideration a number of things; 1.) capital going in and out of an investment, 2.) cash flow generated by the investment, and 3.) the passing of time and the time value of a dollar. Michael’s objective at this point is to calculate the IRRs given each scenario in order to help determine which option is the best for your circumstances. The goal here is to pick the scenario that has the highest IRR.
As mentioned before, IRR can be a confusing concept to grasp and calculating it can get tricky. According to Michael, in order to accurately calculate all three IRRs you’ll need to have a detailed financial model that will help you calculate all of your cash flows, cash investments, and any returns of capital. We like to use our IRR Calculator PRO, which not only calculates IRR but also calculates; cap rate, NPV, 10-year cash flow, NOI, and cash-on-cash returns.
Once you’ve calculated all 3 IRRs, compare them to each other – the scenario with the highest IRR will yield a higher return. But remember that one scenario isn’t fitting for every case, so make sure you do this same process for every property you consider on selling in the future and most importantly consult with an expert who can help you determine the best options.