Archive for Apartment Investing Videos
Here are 2 ways you can start profiting RIGHT NOW
from Commercial Short Sales -
Flip apartment foreclosures for short-term profit. You can
do this without buying the property because you’re actually
sandwiched between the buyers & the seller.
This is perfect for no money down deals. It’s also a
great strategy if you have bad credit.
Another way to profit from commercial foreclosures
is to acquire the distressed property for long-term growth.
This is also a way to create massive monthly income.
Apartment foreclosures are even easier to buy than residential
foreclosures, which is something very few realize.
Banks are beginning to get inundated with commercial property
that is in default and they want to get rid of it before they have
to take it back.
These means opportunity for savvy investors.
Stay tuned because I have a lot more to share with you soon!
Warm Regards,
Karen Hanover, CCIM Candidate
Apartment Education Institute, President
Tagged with: apartment foreclosures , bad credit , Commercial Foreclosures , Commercial short sale , distressed property , Karen Hanover , monthly income , No Money Down
What are Commercial Short Sales All About Anyway?
Real estate investors bought apartments with short-term debt when
the market was hot a few years ago. That’s simple enough…
Now those same short-term loans are coming due and investors
can’t refinance.
EVEN THOUGH RENTS ARE COMING IN and they have the money
to make the payments, they can’t qualify for new financing because
the value of the commercial real estate has gone done in value.
When real estate investors can’t qualify for a new loan, that often
creates apartment foreclosures…
Enter Commercial Short Sale Investing!
Stay tuned as I show you EXACTLY how YOU can cash in on what
many feel will be a tidal wave of killer discounts on commercial
real estate!
I’ll share more with you soon…
Karen Hanover, CCIM Candidate
Apartment Education Institute, President
Tagged with: apartment foreclosures , commercial real estate , Commercial short sale , investing , Karen Hanover , Residential foreclosures
In most loans you deal with something known as the “Loan To Value”
which is referred to as LTV.
In commercial real estate investing you do too, but there’s also
something else that commercial lenders consider and that’s
“Debt Coverage Ratio” which is referred to as DCR.
A commercial lender will calculate the LTV and DCR on a
property and often loan the lesser of the two.
For example, let’s say you had a property worth $100K.
If a lender is willing to loan 80% of the property value, then
that’s 80% loan to value. You would need to come up with another
20%, or $20K. That’s how LTV works.
Now let’s talk about the “Debt Coverage Ratio”, or DCR. With
commercial real estate, a lender wants to see MORE income
being generated than is necessary to fully pay the monthly
mortgage payments on the underlying commercial financing.
Why?
Because if your property is generating say $80K a year in
monthly income, and your underlying mortgage payment
adds up to $80K a year, you don’t have any room for vacancies
or other things that might require cash.
So the commercial lender wants to see often 125% of the
payment owed being generated in income from the property.
That’s one of the reasons why it’s so important to be able to
maximize the amount of monthly income an apartment
can generate.
When investing in apartment foreclosures or commercial
short sales, you can zero in on properties where you know
you can increase the amount of income being generated by
doing improvements or lowering the vacancy rate.
That will also increase the value of the property and that’s
where the fun really begins!
I’ll share more with you soon…
Warm Regards,
Karen Hanover, CCIM Candidate
Apartment Education Institute, President
Tagged with: apartment foreclosures , commercial financing , commercial lender , commercial real estate lenders , commercial short sales , DCR , Debt Coverage Ratio , Karen Hanover , Loan To Value , LTV , monthly income
Often times when we think of doing due diligence, we think
it means checking things over that are physical with a property.
But it also means “Market Due Diligence”, “Legal Due Diligence”,
and “Financial Due Diligence”.
In market due diligence, you want to find out want the vacancy
rates are in the surrounding commercial properties.
If they are experiencing 80% occupancies rates, then there’s
no reason you shouldn’t be able to achieve the same, all things
considered…unless there’s a problem with the property, which
is why you’re researching this.
Also, you want to find out what comparable rents for 1,2,3
bedroom apartments in that area to see if the apartment complex
you’re considering is the same, high or low.
When considering legal due diligence you’re focusing on zoning
and what can be done with the property. This is particularly
important if you ever want to do a condo conversion.
Then there’s financial due diligence. When the owner of an
apartment gives information on it, there are financial numbers
that are presented.
It’s important that you make sure these numbers are correct
and being appropriately represented by checking financial
statements, back accounts, tax records, etc.
I’ll share more with you soon…
Warm Regards,
Karen Hanover, CCIM Candidate
Apartment Education Institute, President
Tagged with: apartment complex , apartment foreclosures , commercial properties , commercial short sales , egal due diligence , financial due diligence , Karen Hanover , market due diligence , occupancies rates
