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How to Value Apartment Buildings for Investment By Winston Rowe & Associates
We have prepared this article to outline the process of valuing apartment buildings for commercial real estate investors. 248-246-2243
By: Staff Writer
Winston Rowe & Associates is earning a reputation for quality underwriting, fast turnaround, and excellent service, with no fees upfront. We have prepared this article to outline the process of valuing apartment buildings for commercial real estate investors.
For more information, you can contact Winston Rowe & Associates at 248-246-2243 or visit their website at http://www.winstonrowe.com
As a real estate investor one of the best investments you can make is the purchase of an apartment building. By purchasing one of these money makers you can rent them out and realize passive income each and every month. If the idea of becoming a landlord turns you off, then you can simply hire a property management firm to deal with the day-to-day running of the property.
Valuation of Apartment Buildings
One thing that often detracts real estate investors from investing in apartments is the ability to determine their value. By purchasing the right building you will be able to make passive income each month as well as grow a sizeable equity in the building itself over time.
In order to determine the value of an apartment building or multi-family home, you can use the following two equations:
Yearly Income from Rents –Yearly Maintenance/
Net Operating Expense x10 = Approximate Value of the Property
While people will try to give you all kinds of numbers and figures on the property, the above is all you really need to make a good estimated valuation of the property itself.
Additional Due Diligence on the Property
In addition, once you have agreed upon a price for the property, then you should start the process of due diligence and take a good look at the income it has been generating each month over the past year or two. You might even want to go so far as to evaluate the current renters and their stability for renting in the future from you.
This link will give you comprehensive market analysis, valuation and listing services http://www.winstonrowe.com/
Financing an Apartment Building
Once you have found an apartment building or multi-family home that you think you want to purchase for investment, you will then need to secure financing for it. If you have good credit, and you want to use a bank or traditional mortgage lender, they will generally lend to you on a property where you are seeing at least 75% of your net operating income each month in rents. In other words, if the cash is flowing through the property, the bank will want to lend to you. Otherwise, you will likely need to secure private financing through other investors.
Winston Rowe & Associates is on the forefront of the apartment and multifamily financing industry; they have loans for cash out to provide equity for commercial real estate purchases, refinances or the repositioning of portfolios and bank cram down loans.
Through their efficient, end-to-end commercial real estate financing solutions Winston Rowe & Associates provides commercial mortgage capital to owners of all commercial property types. With flexibility and speed of execution, they are able to offer a broad range of financing capabilities.
Winston Rowe & Associates
31408 Harper Ave
Saint Clair Shores MI 48082
Winston Rowe & Associates has no upfront apartment building and multifamily loan programs in the following states.
Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, Washington DC, West Virginia, Wisconsin, Wyoming
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Winston Rowe & Associates is a nationwide commercial real estate apartment financing firm specializing in large commercial mortgage loans over $2 Million.