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This article is very interesting and explains how rental increases have been outpacing expense increases for multifamily operators. A huge part of an owner’s expense is upon turnover, and that has actually decreased by almost 8%: “Another spot of good news for landlords—and wholly reasonable, considering the state of the economy—was that three of the four building types examined experienced a decrease in resident turnover in 2010 compared with a year earlier. Turnover for low-rise buildings…Continue
Added by Christopher Urso on August 23, 2011 at 9:00pm — No Comments
Many factors are driving demand, starting with the demographic surge of 20 to 34-year-olds, who are typically renters. This increasing population also has absorbed most of the job growth during the economic recovery and no longer relates to the "American Dream" of homeownership.
Added by Christopher Urso on August 21, 2011 at 9:30pm — No Comments
Quick tip to get a broker on your side....buy him lunch! Went to lunch with the Broker representing the bank on the 74 Unit deal we are going to bid on and i picked up the tab. his response "Chris no one has bought me lunch in the last 5 years, thank you so much. I look forward to seeing you guys get this deal and many more." Its the little things that make a difference in today's world. Stick to the basics.
When analyzing a potential multifamily deal one quick tip is to make sure you do a rent study. It is always important to understand what rent your competition is asking for similar units and also what concessions that they are offering. A big mistake many novice investors make is taking the broker's word for it when it comes to market rents, ALWAYS verify the numbers.
To your success,