Wheelbarrow Profits Podcast: Multifamily Real Estate Investment

Will Coleman and Mike Taravella Interview award winning multifamily syndicator Bruce Petersen. Key Information: Despite low cap rates, investors still need a place to put their money. The low cash on cash returns in muti-family are still better than letting cash sit in the bank with low interest rates. Success in real estate is all about taking action. You can’t hesitate, you must be keep moving forward, taking daily strides. Stress test your property in your underwriting. Assume no rent increases in year 1 Underwrite 70-75% break-even occupancy Increase your exit cap rate by 15-20 basis points every year of the hold Account for the possibility of reserves    Reserve Strategies:1) Look to delay capex during the first six to nine months in order to use the reserves once returned 2) Evaluate the possibility of return of capital following the end of the reserve period Floating vs Fixed Rates: Avoid floating rate terms for real estate financing. Due to its unpredictability, it adds a lot of risk to each investo