The numbers of units are the single most important yet most overlooked thing in all of real estate tips. The number of units multiplied by the rent increase will determine the appreciation of a property in the future.
How many units are you looking to buy? The more, the better.
Real estate is a business sitting on a property—and the more units you have, the bigger your business will be.
Top 7 Signs You Have a Great Deal – Grant Cardone Capital
In addition to the number of units you’ve got, what else signals a good deal?Here are 7 signs you have a great deal:
#1 Positive IncomeLook for cash flow above operating expenses! Does your deal provide positive cash flow each month?
#2 Banks need to be interested in your dealYou shouldn’t have to talk your bank into it, they should be eager to partner with you on the deal. Why? Because banks want to partner with good businesses—and they avoid bad ones.
#3 Your manager needs to be happy about the property and well paidIf you can’t pay your manager, your property is worth less and likely not worth investing in. An unhappy manager will steal from you either directly or from being careless. Does your property pay enough to give you the ability to support a quality manager?
#4 Unsolicited buyer interestYou’re not listing it, but people want to buy it. That’s when you know you’ve got a great deal. I have many people calling me, texting me, asking if I’m willing to sell my deal in the Galleria in Houston.
#5 Stable and growing job growth in your marketThat’s why I look at Tampa, Houston, and Orlando. I like jobs coming into a market. Markets that are losing jobs will soon bring trouble to property owners in that contracting area.
#6 Salaries 3X or greater than the rentThe higher the salaries compared to the rents, the better your deal is. You want a place with tenants who have a lot of disposable income.
#7 LocationEveryone should feel good about where your property is, that there’s no doubt about it being a good, desirable area. There you have it — 7 signs you have a great deal to show you if you have a winner on your hands. If you lack one or two of these things on this list, consider NOT buying it! Be great, GC