SOLD OUT! HAMILTON LIVE NOVEMBER WORKSHOP SOLD OUT! NEW DATES FOR 2020 TO BE ANNOUNCED!

#12 Over-Paying for Apartment Buildings : What's the Right Price?

Uncategorized Oct 09, 2019

A couple of students of mine in my online course 'Canadian Multifamily Investing Blueprint' asked me the following great question:

" If a building is over-priced in a realtor’s listing, how do you figure out the maximum amount you would pay to make it a worthwhile investment?"

In this video, I answer that question. There is no perfect answer!

 

Also, in case you have not heard, at popular demand, I'm having a second live workshop, the 'Canadian Multifamily Investing Blueprint' in Hamilton on November 1 (pm only), 2 & 3, 2019.  The event is ALMOST SOLD OUT but I still have VERY FEW SEATS LEFT at the early bird discount which you can access using the link below.

This is an early bird PACKAGE COMBO which includes not only one ticket to the live workshop, but you also get lifetime access to the  ONLINE VERSION of the workshop and all future upgrades. 

There is no other training program like this in Canada for people who want to...

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#11: Please, Don't Make These Mistakes! Prior Preparation is Not Optional in Multifamily Investing.

Uncategorized Oct 03, 2019

 

 

 

 

 Hi,

Last week, I was coaching a student of mine who recently took my 2.5-day live workshop. He was working on his first acquisition and was running into some problems because he was making some basic mistakes that I have seen lots of novice investors make over the years.

In this blog post I share those mistakes with you. Please, watch this short video and make sure you don't make the same mistakes too.

Also, as a result of popular demand, I'm having a second live 2.5-day workshop in Hamilton on November 1-3, 2019. 

I've already sold 2/3 of the limited seats available. So you'll have to act fast if you want to secure your spot.  That's because of the 'EXPERIENTIAL' format of my workshop, that is 'learning by doing', I keep the group very small - no more than 25 people or so.

The good news is that there still room at the early bird price. Click below to get more details:

Link For Hamilton Early Bird

In addition to that, I'm super stoked to...

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# 10 Great Lessons From a Student Who Just Bought his Second Apartment Building in 2 Years

baltazar interview Aug 19, 2019
 

This is a great interview with a graduate student of mine who attended my multifamily live worshop in Hamilton just 2 years ago and who is now purchasing his second property.

Mark Baltazar shares with us his mistakes, his good deeds and how he raises capital for his investments in apartments buildings.

Many great lessons that can help you shave years from your learning curve.

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#9 What are Cap Rates?

cap rates Aug 11, 2019

It’s of utmost importance when investing in apartment buildings to understand how to determine the current value of the asset and the principles of the valuation method.

So this short video, I walk you at a high level through the various valuation approaches used by appraisers and banks alike with emphasis on the ‘INCOME CAPITALIZATION APPROACH’ which used for multifamily properties.

YES, I’m going to talk about ‘CAP RATES’ and demystify them once for all! I’m also attaching an article I’ve written on this subject years ago which includes some tips.

First though, let me tell you the following:

DON’T GET HUNG UP ON CAP RATES!

That’s because you don’t get to choose the cap rate! Your banker and/or CMHC and the market decide what the cap is going to be.

If you really want to get hung up on something:

‘GET HUNG UP ON CASH FLOW!’

You must make the apartment building has a net positive cash flow.

LET THE...

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#8 Professionalism is Not Optional When Investing in Apartment Buildings

One of the things I put a lot of emphasis on when I’m teaching multifamily investing or in my own business as an apartment building investor myself is on the NEED FOR A HIGH DEGREE OF PROFESSIONALISM.

 

Apartment building investors are expected to be very thorough in their planning and research phase before writing an offer to purchase. Stakeholders in the multifamily world expects investors to have done their homework much more than when investing in small rental properties one to four units because, of course, the stakes are higher. There’s much more capital at stake, not to mention your reputation.

 

I also advise my students to ensure they have multifamily professionals on their team before they venture into their first purchase of an apartment building starting with their realtor, mortgage broker, lender, building inspector and/or engineer and lawyer.

 

Well, for the first time ever I’m in the process of selling one of my properties and there...

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#7 Making money with apartment buildings: A Tip from a Pro!

If you're reading this post, it's very likely you've read or watched videos of previous posts of mine in which I talk about one my favourite reasons for investing in apartment buildings, that is the WEALTH MULTIPLIER EFFECT!.


You see, contrary to small rental properties containing one to fours units, for which the 'sales comparison' method is used to determine the value of the property, when you invest in larger apartment buildings of five or more units, the way the value of the asset is determined is called the 'income capitalization' approach, or 'cap rate' approach.

According to the cap rate valuation approach, the value of the property is arrived at by dividing the property's net operating income, or NOI, by your market's prevailing or average cap rate for comparable properties. To calculate the NOI, you subtract the property's operating expenses from the rental income.

The wealth multiplier effect, also sometimes called the 'big lift effect', kicks in whenever you increase...

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#6 Keep an eye out for illegal suites in apartment buildings!

 

In today’s post, I would like to talk about illegal suites in apartment buildings as something you need to watch out for, especially in older properties, when you are considering purchasing an apartment building. 

By illegal suites, I mean apartment units that were often added after the time of the initial construction of the building and for which the property owner may not have obtained a building permit from the municipality to add these new units.

This can have negative consequences from a financing point of view as the income from these illegal suites will not be taken into account by the bank and in the calculation of the net operating income (NOI). This means the bank will reduce the loan amount accordingly.

You see, in the world of multifamily investing, the value of the property is mainly derived from the property’s income, called NET OPERATING INCOMEor NOI. When the NOI is lower, so is the value of the property. Therefore, banks and CMHC want to see an...

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#5 How Much Money Do I Need to Start Investing in Apartment Buildings

Uncategorized Nov 21, 2018

Hi!

 

When I speak or teach about investing in apartment buildings, I'm often asked how much money do I need to get into the big leagues of real estate investing.

 Of course, the answer to that question will depend namely on the size of property you are looking at purchasing and based on the amount of capital you have available.  That's part of your planning phase before you start writing offers on multifamily properties.

 Please, if you have not done so already, make sure to download my Ebook: 'Multifamily Investing Secrets Revealed' as it will help you with your planning by having you answer five key questions (click here to download Ebook: https://www.multifamilyinvestingcanada.com/)

 

Accordingly, the answer I give people when they ask me how much capital they need to get started into investing in commercial residential properties, that is apartment buildings of five or more units, is a percentage of market value and it will also depend on the following...

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