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Neil Shekhter - If You Can Buy a Rental Property, You Can Buy an Apartment Complex

LOS ANGELES, CA / ACCESSWIRE / January 16, 2018 / NMS Properties, Inc.

Tips for Buying an Apartment Complex

According to Neil Shekhter, some amazing news is available if you're a real estate investor who has already gotten your feet wet with a single-family rental unit. It's just as easy for you to invest in an entire apartment building than it was for you to obtain your single unit. We'll skip the commercial investment lesson and just assume that you are already advanced in your understanding of how the process works. Here are some useful tips on complete building rental.

Review the Rent Roll or Income Potential

You probably already have a significant understanding of the profits and losses or P&L. You probably understand that you need to conduct a thorough analysis of the property's potential expenses and profits, and you know you shouldn't take the seller's word for it. You'll need to make sure that you go over the P&L with a fine-toothed comb.

The rent roll is a completely different concept that you'll also need to analyze and consider. Investors like Sam Jacobs of NMS Properties just started using the rent roll concept because it helps to zone in on the most profitable investments. The rent roll is based on the number of current tenants in the apartment building and their rent amounts. It'll give you an accurate potential income figure, Neil Shekhter points out.

Understand Property Value Concepts

Sam Jacobs of NMS Properties says that apartment appraisal is a different process than any other appraisal process. It's not like a single-family appraisal where the appraiser just matches some similar homes and then plays with numbers. This process requires you to estimate your net operating income and then use that in a ratio with the home's sale price. The figure is called the capitalization rate, and you get it by dividing earnings by property value. You then use that percentage to compare the potential property income. A higher percentage property will be cheaper for you to obtain.

Obtain Good Financing

Neil Shekhter explained, that you're most likely going to need financing for your venture. You want to make sure that you save at least a 15 percent down payment and you take your time and shop a few lenders before you settle on one. Additionally, try to get a five to 10-year loan if you can.

Join the Club

Everyone is getting into real estate investment these days from Millennials to Warren Buffett. Money is in the industry if you have the patience to understand the mechanics and listen to the experts. Take your time and shop a few lenders before you settle on one. Additionally, try to get a five to 10-year loan if you can.

Finally, make sure that you use professionals as your advisors and go-to people. Put your faith in a respectable real estate broker, and use additional accredited firms if you need to. If you keep all the above-mentioned tips dear to you, you should have no problem succeeding in your commercial property endeavors, says Neil Shekhter.

Launching NMS Properties in 1988, Neil Shekhter assumed the role of CEO in January 1995. The real estate management company focuses on multi-family and mixed-use properties in the Greater Los Angeles area and in Santa Monica. At present, NMS properties manages more than 70 properties.

Neil Shekhter - Founder and CEO of NMS Properties

Apartments For Rent In Los Angeles NMS Residential: http://www.nmsresidential.com

NMS Properties - Real Estate Management Firm: http://www.nmsproperties.com

Contact Information:

news@neilshekhter.com
info@neil-shekhter.com

SOURCE: NMS Properties, Inc.

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