what is the easiest way to determine a good deal on apartment investing and where do I start

In Buying Property - Asked by Joby S. - May 10, 2010
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Answer(s)

Michael B.
Broker/Agent
Buffalo, NY

hello, mike from buffalo, the presumable number one specialist in wstern new york for the acquisition and disposal of apartment complexes. small, medium or large, a real good deal can mean differenct things to different investors. Being confident in the income that an investment can generate, and doing the proper due diligence on the expenses, will help you do the proper math. Its all about the math. what your left with at the end of the day is real important. cash flow tax incetive, depreciation and appreciation, the four golden virtues of investment realty. hungry for more, contact me at mbattag670@aol.com

May 10, 2010
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Philip C.
Owner/Investor
Wakefield, NY

I would like to say location, location, low crime, near major transportation, schools, hospitals.
Owner finacing or paying closing cost,have a good appraisal. If you have a buyer for the property and all the necessary paper work in place, ask all the right questions and the ability to close that deal before it sour on you.
After you do due dilligence then you should be Ok. if all goes according to plan.
Philip Charles

May 10, 2010
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Maricela R.
Broker/Agent
Austin, TX

The first thing to look at is the financial status of the project, occupancy rate, attrition rate, expenses vs income, total operating exenses. An loan company wil expect for you to invest 20 to 30 percent. The information will be required and of course will need to be verifiable.
Loan of this type are looked at in different ways. Appraisals up front can be expensive depending on the size of the prject. Many entities offering loan on this type of project will require up front fees that are not always refundable. Be careful with this.

May 11, 2010
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William J.
Broker/Agent
Dallas, TX

This question is relative to the market you are investing in. Best advice is to research, figure out what the sales comparables in the immediate area are and consult local experts, including but no limited to: other investors, brokers, management companies, appraisers, lenders, etc. Through talking with these people you will likely begin to get clarity on whether or not the deal you are getting is a good one. By talking with multiple parties you will find that any discrepancies in the story or the financials will reveal themselves. The best investors that I know start with a set of criteria for an ideal investment and if more than a few of those criteria are not there they move on to the next deal. While you can't buy a perfect property, you can eliminate some bad decisions using that approach.

May 11, 2010
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norman b.
Developer
ROSWELL , GA

please forgive the caps.
THE EASIEST WAY IS TO START WITH THE END IN MIND ASSESS THE MANAGEMENT, MAINTAINENCE, AND VACCANCY RATES. PAY EXTRA ATTENTION TO MAINTAINENCE, IMPROVEMENTS AND BIG TICKET COST THAT CAN INCREASE OR DECREASE RETURN ON INVESTMENT. FOR EXAMPLE, WILL THE ROOF NEED TO BE REPLACED IN A FEW YEARS, OR WILL ADDING A UPDATED SECURTIY SYSTEM ATTRACT TENANTS.

May 13, 2010
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Giovanni I.
Owner/Investor
Bellevue, WA

The numbers are relatively easy to run, the hard part is verifying the accuracy of the information you are given. I have a quick spreadsheet that tells me whether a property is worth looking deeply into (www.ashworthpartners.com/the-dealizer) but figuring out what the real expenses requires a combination of local knowledge and good old fashion digging. I treat everything that's out of the normal local range as a red flag; either there's something wrong with the property or there's something wrong with the story you're being told. An experienced local broker who specializes in multifamily properties should be able to provide you with the typical expenses for your area and will have access to historical as well as recent sales trends. Working with one is well worth it and a good education.

May 14, 2010
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