Investing rules (2%, 50%, 70%)

Thinking of Scaling to Apartment Buildings? Ditch the 2%, 50%, 70% Rules

When it comes to real estate investing, single-family home investors often rely on a few tried-and-true "rules of thumb" to quickly analyze deals - the 2% rule, the 50% rule, the 70% rule.?

But if you try to apply these same principles to analyzing multifamily (MF) properties, they just won’t work.

Why don't these "rules" work in the MF world? Well, what may have served you well in the SFH space simply doesn't translate. In fact, trying to force these methods onto MF deals could actually get you into big trouble.

The truth is, commercial real estate is valued completely differently than residential. Instead of comps, MF valuation is all about the property's income potential. And the formulas and metrics you need to know? Miles away from anything you'd use for a single-family home.

So if the 2%, 50%, and 70% principles are off the table, how do you actually analyze an apartment building? ??

The key is finding the right team to guide you. Trying to figure out MF underwriting on your own is a recipe for expensive mistakes. You need brokers, lenders, and advisors who understand the market and can help you navigate the complexities.

With their expertise (and the Syndicated Deal Analyzer), I was able to cut my deal analysis time down to just 10 minutes and start making offers brokers took seriously.?

No more wasted hours spinning my wheels!

If you're ready to scale beyond single-family, it's time to ditch those old rules of thumb. Instead, lean on the pros who've already walked the path. Trust me, it'll change the whole game.

Who's ready to level up their multifamily investing? ??♂?

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