Summary

Don’t miss the opportunity to find out which one is best for your style of investing. Join us for the conclusion to Single Family vs Multifamily!

When we talk about single family, we’re talking about anything in the residential space, typically anything under five units, and multifamily refers to over 100 units or more. This week we’re wrapping up our 4 part series on single family vs multi family and diving into: the benefits of single and multifamily, how these asset classes are valued and how quickly you can scale up your portfolio.

KEY TAKEAWAYS

  1. Commercial property is based on NOI (Net Operating Income) which is net operating income minus expenses. You can increase the value of the property by decreasing expenses or increasing the income of the property.
  2. If you decrease the expenses of a commercial property by $1 at a capitalization rate of 5% then the value of that property goes up by $20 by every $1 earnt or saved.
  3. Capitalization Rate – The annual rate of return on a commercial property bought with 100% cash. Example: A 5 cap equals a 5% return.
  4. You must focus on due diligence. It can be harder to carry out proper due diligence on a single family property and just buy a commercial block.
  5. With single family you can renovate a property and sell it to a homeowner who will pay the highest price, plus you can manage the property to your liking.
  6. If you’re looking for control, then go the single family route. If you want to be a passive investor, then go the multi family route.

LINKS

Learn more about investing with Steven at https://theinvestormindset.com/invest

FEATURED EPISODES

Learn from the smartest minds in business & investing.

Rod-Khleif

Rod Khleif

Director at The Lifetime CashFlow Academy, Best Selling Author & High Performance Coach
Kathy Fettke

Kathy Fettke

Co-CEO of Real Wealth Network, Host of the Real Wealth Show & author of Retire Rich with Rentals
chris-voss

Chris Voss

World's #1 Negotiation Coach, Bestselling Author "Never Split The Difference"
Brandon-Turner

Brandon Turner

Cohost of BiggerPockets Podcast, Author and Managing Member of Open Door Capital LLC
david-allen

David Allen

Leading authority in organizational and personal productivity, Author of Getting Things Done
Joe-Fairless

Joe Fairless

Host of Best Real Estate Investing Advice Ever show, Co-Founder of Ashcroft Capital

About The Show

What separates those who succeed from failures? Join thousands of listeners who learn the mindset of real estate investing and how to create multiple income streams. From busy professionals interested in passive investing or the real estate entrepreneurs who are primed to scale all come together to learn the mindset of creating financial and time freedom.

The Investor Mindset is a mix of interviews, and solo shows from Steven you’re not going to want to miss. Hit subscribe, and get ready to change your life.

YOUR HOST:

Steven Pesavento

The Investor Mindset Podcast & President VonFinch Capital

Steven Pesavento has always been obsessed with understanding how we can think better, how we can be better and how we can do better. He is an active real estate investor who curates Commercial Real Estate Investments for clients.

The Top 5 Lessons Learned From High Performing Real Estate Investors

I’ve interviewed almost 100 guests on The Investor Mindset Podcast. They all give their best advice. But what’s THE best advice, and what does it mean for us?