The numbers of units are the single most important yet most overlooked thing in all of real estate. 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.
In addition to the number of units you’ve got, what else signals a good deal?
Here are 7 signs you have a good deal:
#1 Positive Income
Look for cash flow above operating expenses! Does your deal provide positive cash flow each month?
#2 Banks need to be interested in your deal
You 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 paid
If 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 interest
You’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 market
That’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 rent
The 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.
Everyone 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 quick and easy signs 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!
Our offerings under Rule 506(c) are for accredited investors only.
FOR OUR CURRENT REGULATION A OFFERING, NO SALE MAY BE MADE TO YOU IN THIS OFFERING IF THE AGGREGATE PURCHASE PRICE YOU PAY IS MORE THAN 10% OF THE GREATER OF YOUR ANNUAL INCOME OR NET WORTH. DIFFERENT RULES APPLY TO ACCREDITED INVESTORS AND NON-NATURAL PERSONS. BEFORE MAKING ANY REPRESENTATION THAT YOUR INVESTMENT DOES NOT EXCEED APPLICABLE THRESHOLDS, WE ENCOURAGE YOU TO REVIEW RULE 251(D)(2)(I)(C) OF REGULATION A. FOR GENERAL INFORMATION ON INVESTING, WE ENCOURAGE YOU TO REFER TO WWW.INVESTOR.GOV.
For our anticipated Regulation A offering, until such time that the Offering Statement is qualified by the SEC, no money or consideration is being solicited, and if sent in response prior to qualification, such money will not be accepted. No offer to buy the securities can by accepted and no part of the purchase price can be received until the offering statement is qualified. Any offer may be withdrawn or revoked, without obligation or commitment of any kind, at any time before notice of its acceptance given after the qualification date. A person’s indication of interest involves no obligation or commitment of any kind. Our Offering Circular, which is part of the Offering Statement, may be found at www.cardonecapital.com