Why Does a Value-Add Strategy Matter?
How to protect your apartment building from the next recession.Read more
Is affordability becoming an issue?
With all the headline-making news regarding tremendous rent growth, it may be hard to focus on the issue of affordability. Owner/operators have been able to push effective rents 10%+ in many major MSAs throughout the country for the past few consecutive years. This may seem like great news as effective rent growth increases NOI and ultimately value, but as most investors know, what goes up, must come down. The factor that many analysts and news outlets […]Read more
Regulatory Concerns over Utility Reimbursement
NWP Services recently released a white paper covering the potential pitfalls regarding utility reimbursement programs for apartment operators. RUBS and sub metering can be a very effective means for decreasing utility expenses, but it must be done with state and municipal laws. If theses laws and regulations are not adhered to, it can result in still fines and penalties. Read the White Paper on Utility Reimbursement Concerns from NWPRead more
Foreign Capital continues strong flow into US Commercial Real Estate
A recent article posted by Multifamily Executive went into detail regarding the consistent flow of capital into the US multi-family sector. With the exceptional recovery in multi-family markets, foreign direct investment has generated roughly $5.6 billion here in the U.S., according to Real Capital Analytics. With Canada being the largest foreign investor, these trends are expected to continue into 2015. Although, the U.S. is receiving a significant amount of foreign investment interest, this trend is […]Read more
Profitable Properties Start With Qualified Management
When owning a multi-family property, it becomes imperative that you have a qualified property manager running the operations of your property. If you try to save money or utilize an unqualified manager, you could risk opportunity cost or worse, insolvency. For instance, a mistake that many retail investors and possibly even institutional firms make, is hiring a company that does not specialize in the type of asset you are acquiring. Do not hire a firm […]Read more
The Power of the 1031 Exchange
Utilizing the IRS’s 1031 tax-deferred exchange can allow real estate investors to defer payment on capital gains, thus increasing the potential for greater returns. Imagine that you bought a property for $1,000,000 and sold it for $2,000,000. What do you think your profits would be after taxes? There are several factors that will account for this amount, such as your holding period and/or your income tax bracket. Now imagine if you did not have to […]Read more