What is Internal Rate of Return (IRR) and Why is it Important?

Today we will discuss what Internal Rate of Return (IRR) is and how to calculate it. Internal Rate of Return is a tool used to calculate your overall return from the day you purchase an investment property, to the day you plan to sell that investment. Aside from calculating your yearly cash flow (very important), IRR will inform you of your overall rate of return as it also includes your estimated sales price at the end of your planned holding period. This is an advanced tool used by savvy investors to understand the overall picture when purchasing a Multi-Family Investment.

What is Cash on Cash Return? How do You Calculate It?

Welcome back to 5 Minute Multi-Family. Today we discuss my favorite topic when it comes to my own investment properties, calculating your Cash on Cash Return. Think of it like this, you have put up your hard earned capital to purchase an investment property, you take on the risk that comes with being a multi-family landlord, you have your time and energy invested managing the asset, so, how much are you really making at the end of the day? Let’s do the math and see what our true rate of return is.

What are Tenant Estoppels?

Welcome back to 5 Minute Multi-Family. Today we follow up on last week’s video where I discussed how to audit the rents on a prospective purchase. Today we take it a step further to discuss the documentation you need as a buyer to confirm the tenants and the seller of the building you are looking to purchase agree on the rental rates and the security deposits.

How to examine Unit Mix and Rent Roll

Thus far on 5 Minute Multi-Family, we have covered Capitalization Rate (CAP Rate), Gross Rent Multiplier (GRM), and Price/Unit & Price/ Square Foot. This week we move on to examining Unit Mix & Rent Roll (the bedroom/bathroom composition of a property with the corresponding rental rates). We also dive into discussing how to examine a rent roll versus the actual rental leases to identify any discrepancies.

Learn About Price Per Unit and Price Per Square Foot

Price Per Unit & Price Per SqFt – Let’s Discuss The 2 Remaining Major Markers of Determining Your Property’s Value.

If you watched our 2 earlier installments of 5 Minute Multi-Family thus far we have covered Capitalization Rate (CAP Rate) and Gross Rent Multiplier (GRM). This week I explain the remaining 2 markers of determining the value of a multi-family investment, Price Per Unit & Price Per Square Foot. WATCH NOW

5 Minute Multi-Family is a weekly video series where my team and I help you, the investor, understand the major markers of evaluating a multi-family asset.

So How Do You Calculate GRM???

This week on 5 Minute Multi-Family my partner, Deepen Shah, will break down for us what GRM is, and why it is important when analyzing. an investment property. WATCH NOW as we break down for you once and for all how to calculate GRM.

5 Minute Multi-Family is a weekly video series where my team and I help you, the investor, understand the major markers of evaluating a multi-family asset.

How Do You Calculate Cap Rate?

The only question I get asked more than, “Hey Kris can you cut your commission?” 😂 is “What is a CAP Rate?” You would think only novice investors are puzzled in calculating a CAP Rate but oftentimes that question is coming from a seasoned investor who either has been too embarrassed to ask someone along the way, or never took the time to find out for themselves.

So I was inspired to create 5 Minute Multi-Family, a weekly video series where my team and I are going to break down the major markers an investor would use to evaluate a multi-family asset. In the coming weeks, we will also discuss the most common questions we get when it comes to the day to day management of multi-family properties…and tenants!