real estate

Are you a beginner real estate investor? Then let veteran multifamily investment expert Rob Rowsell guide you to the right education course. There are so many rookie mistakes you can slip into, but Rob has been there and done that. Learn to grow your investment portfolio the right way!

Attention Beginner Real Estate Investor! Learn How To Avoid Common Mistakes

Beginner real estate investor rental homeBeginner Real Estate Investor Kris called in to Rob’s monthly Inner Circle Zoom meeting, and laid out her situation. She bought a house to renovate in order for it to generate revenue. Unfortunately, she had some nightmare experiences with contractors. In fact, she was on her third contractor at the time when she called Rob. For future reference, she asked what education to pursue so she could avoid her properties becoming money pits.

Kris clarified that she planned at first to use the house for a home business, but then decided to use it as a single family rental property. Since Rob specializes in multifamily real estate investments, he recommended Ryan Pineda’s courses for single family rental homes. While Ryan’s education platform is a big investment, it is a goldmine of knowledge for any beginner real estate investor starting with a single family property.

Join Our Multifamily Investing Community Today

Do you own your own multifamily rental properties? If not, do you plan to do so one day? Then you should consider joining our online financial group, the ATL Inner Circle Community! Each month, investing pro Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not quite as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Sign up today!

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Rob Rowsell answered a caller who asked about which of two investing choices was the best arrangement. Should the caller choose a joint venture real estate deal or a syndication investment? Watch and learn which is the best scenario for your own property deal.

Real Estate Joint Venture Investment or SyndicationJoint Venture Real Estate Deal And Syndication Investment Compared

Our friend Gabriel asked Rob which factors dictated a joint venture real estate deal, rather than investing with a syndication. For example, could the number of units in the property play a role?

Instead, Rob feels like JV deals are appropriate whenever you can pitch in with competent, like minded friends. He shares his Christian faith with one group who he does Joint Venture investments with, although Rob welcomes non believers to his business circle. Faith in Christ just happens to be one of the common threads in the trust that bonds this group.

When is a Syndication property investment a better choice? Rob explains that if you contribute to multiple Joint Ventures, you will soon run out of money. Syndication investments do not require you to risk as much cash as a JV or become as directly involved. When you go into a Joint Venture, it’s all hands on deck amongst a small group to make sure all of the paperwork is signed and decisions are made.

So, which do you choose? Go with a smaller property and smaller team on a Joint Venture? You may get a greater return, but you will definitely work for it. A Syndication could reap a smaller reward, but will not require as much investment or effort. It all depends on your own financial situation, whether or not you have a close knit core group of investors, and what your goals are.

Join Our Multifamily Investing Community Today

Do you own your own multifamily rental properties? If not, do you plan to do so one day? Then you should consider joining our online financial group, the ATL Inner Circle Community! Each month, investing pro Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not quite as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Sign up today!

Rob Rowsell answers a question from a caller about commercial real estate cap rates. Rob follows up with a deep dive on capitalization rates in the property investment industry. Watch and read along to learn everything you need to know in this cap rates deep dive!

Commercial Real Estate Cap RatesCommercial Real Estate Cap Rates And Property Values Explained

Our caller Deon asked if a “6” cap rate was ideal before making an offer. Rob clarified that his initial example was based on a “6” rate. Really, Rob views that number as a starting rate when making a quick valuation, then you will want to dig deeper to see if you can do better. Depending on the situation, another rate could work better. Many factors, from the market to the broker, could affect what rate you want.

What formula do you use to determine a commercial property value?

Rob explains that this formula differs from the one we use for multifamily property values. In that situation, you compare recent sales near the dwelling you’re looking at. When looking at a commercial property, you can divide the Net Operating Income (NOI) by the Market Cap (Capitalization) Rate. You will then arrive at the value of the commercial property.

For example, you pay $1 million cash for a property. It brings in $100,000 in Net Operating Income. Therefore, you paid a “10” cap for that property. A more realistic scenario would be paying $1.7 million cash, bringing the cap rate to 5.8 – thus, Rob’s initial example rounded up to 6.

When you take the time to calculate realistic numbers, you will know whether or not a property is worth your time. Do your due diligence, because commercial investments can be risky business, even for seasoned pros!

Join Our Multifamily Investing Community Today

Do you own your own multifamily rental properties? If not, do you plan to do so one day? Then you should consider joining our online financial group, the ATL Inner Circle Community! Each month, investing pro Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not quite as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Sign up today!