Friday, November 17, 2017

3 Crucial Steps to Create Predictable Cash Flow in Multi-Family Real Estate

Multi-family real estate investments can be incredibly lucrative—if done right.

Real estate investment experts Jake Stenziano and Gino Barbaro know this first hand. In 2010, both realized they could do more with their lives than pharmaceutical sales (Jake) and running a restaurant (Gino).

They wanted to make investments that provided predictable cash flow, so they decided to partner in pursuit of multi-family real estate.

In this episode of Capital Gains, Jake and Gino discuss the three aspects of investment which you have to get right, how to source the best deals, and why multifamily apartments are the best investment option if you want control over your assets.

Jake says that they soon realized multi-family is a three-legged stool. You have to buy right, manage right, and finance right.

>>When “buying right”, they have a cash on cash returns goal which they want to hit, and they also have cap rates which they’re willing to pay.

>>To “manage right”, determine what the market rent is, make little touch ups on fixtures and keep up with inflation with a 3-5% rent increase per year.

>>When “financing right”, you want the lowest rate and the longest term possible. Start with community banks and get three or four fighting against each other to get the best rate.

Learn more about these tactics from Jake and Gino by listening to the full episode of the Capital Gains podcast.

 

Connect with Jake and Gino

Visit Jake and Gino’s website at www.jakeandgino.com.

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Connect with Jonathan Twombly

Find more great content from Jonathan at www.twobridgesmgmt.com.

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