BiggerPockets Podcast Episode 317 w/ Chad Doty This week’s podcast recommendation is a BiggerPockets episode with Chad Doty, co-founder of 37th Parallel Properties. 37th Parallel is a multifamily investment business that was founded over 10 years ago. I really enjoyed this episode because Chad dives into high-level topics about the 4 components of every real[…]
It is important to have a direct criteria when it comes to location and building so we and the broker both have an aligned understanding of our goals. First, we established our Criteria When Deciding on a Multifamily Location. Now we will discuss our specific multifamily building criteria when deciding on a deal. B[…]
With the goal of investing in a multifamily asset within a 5-7-year term, it is better to look into metro market metrics to pick a multifamily real estate location (and not submarket metrics) because there is such little variance between a submarket and metro in a 5-7-year period for multifamily. Once the desired metro is[…]
Introduction to Cap Rates in Real Estate Basics of Real Estate Capitalization Rate (usually called a Cap Rate)? A Cap Rate reflects the desirability of a properties cash flow stream. You find a properties cap rate by finding its next years Stabilized Adjusted Net Operating Income and dividing by the purchase price of the[…]
Internal Rate of Return (IRR) and Net Present Value (NPV) Internal Rate of Return (IRR)– is one way to measure the performance of an investment in a real estate transaction that spans across multiple periods It is an annualized rate of return expressed as a percentage If the investment spans only 12 months, the[…]