Apartment Investing Virtual Class

October 22, 2008 11 Comments

Here’s the replay of the Apartment Investing class!

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Susan, I’ve listened to several “Gurus” including Lance Edwards, David Lindahl, Peter Conti, et al, and I think your presentation was equal to if not better than any I’ve heard – that includes presentation and content, esp. content.” Thank you — Marshall Werry

“Susan, Good conference call the other night – I was expecting fluff and a hard sell of over priced courses and instead I received good sound financial information that I can use to evaluate real estate. I am a newbie and this was very helpful.” — Frank Starosciak

Resources

Here are links to the resources and offers I mentioned on the teleclass:

Red Capital Group’s 2008 Guide to the Multifamily Markets

Red Capital Group’s Research Report Index by State

Commercial, Financing, Videos
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11 Responses to “Apartment Investing Virtual Class”

  1. Jerry Reply October 23, 2008 at 12:11 pm

    Susan,

    Great information, as always! Thanks for sharing with us.

    I have a question that I hope you can take a few minutes to address. In your presentation you spoke about the differences between “value plays” and “long term holds” — and that you prefer holds. One of the things that I’ve always found difficult with buying properties without some value play element is the fact that the numbers don’t work out very well unless the cap rate is really high or a larger down payment is made (which also affects cash on cash returns). For example, assume that one can buy a property with a true 8% cap rate. The NOI will not be sufficient even at that cap rate to meet DCR requirements for a loan with just a 20% down payment. Plus, even if it did get funded, the cashflow is going to be poor. For example, a $1MM property at 8% cap will have $80k NOI. For an 80%, 6.5% 240mo loan, the annual PI will be $72k. That won’t meet DCR reqirements…and would only cashflow $8k per year anyway (4% cash on cash ROI).

    Can you please take a few minutes to elaborate on this? How are you actually doing these deals without some sort of value play? Putting more down than 20%? And how are you able to retain your investor interest with such a low cash on cash ROI?

    Susan, you’re the greatest! Thanks for all you do.

  2. Susan Lassiter-Lyons Reply October 23, 2008 at 4:33 pm

    The key is to get properties below market value and I always use 30 year amortization financing. Obviously if you are paying full price, it’s tough to get the rate of return we want. But I don’t pay full price and neither should you.

  3. Jerry Reply October 23, 2008 at 9:20 pm

    …which results an a higher cap rate for the acquisition.

    But you did note a third option that I failed to include…a longer amortization period. Incidentally, using the example I noted above, but with a 30 year amortization instead of 20 does work out…well within 1.2 DCR and cashflows at about 9.7% cash on cash ROI.

    Thanks for your help, Susan!

  4. Romao Reply November 9, 2009 at 9:19 am

    How do you get started and do you have a course or telclass to get started with no money.

  5. Susan Lassiter-Lyons Reply November 9, 2009 at 10:14 am

    Romao – watch the Mastering the Master Lease Option class. That’s the best way to get involved in commercial with no $$.

  6. Romao Reply November 10, 2009 at 10:03 pm

    Do you have a Apaertment Building Investing Course.

  7. Donald Reply March 19, 2011 at 10:29 pm

    Susan,

    I listen to any and all things Lassiter-Lyons, because of your no fluff and hype delivery. I’ve been attempting to buy multi-family apartments since Feb 2010. I educated myself (of course, training is ongoing), paid for a couple of courses, and went to work. Fail #1. “Since your personal credit isn’t strong enough, and you have no prior management of apartment experience…”
    Fail #2. No experience in getting private investors to invest in projects where the numbers are looking good.
    Fail #3. Not knowing enough about master lease options.
    So my apartment investing strategies are taking a back seat till I do some more homework on, specifically, master lease options, increase my credit score, get some business credit in motion, and move into wholesaling of SFH.
    Susan, thanks to your well placed add for your wholesaling course, I’m changing directions for a bit until I can get a few more things in place for a smoother transition to multi-family properties!

  8. Tim Reply December 25, 2011 at 5:09 pm

    First of all, thanks for allowing me to view the Apartment Investing class.
    I do have a question, Would it not be appropriate (and perhap prudent) to send a LOI, then if accepted request documentation (Due Diligence) to insure accuracy of Seller Disclosure before committing to a formal Offer/Purchase.
    Thanks for your time and expertise.