Yesterday, we walked through the basics of spotting a great deal by calculating Proforma Value and understanding cash flow and resale potential. Today, let's break down the three key numbers that really matter when deciding if a deal is right for you: Cash on Cash Return (CoC) This measures the annual cash flow you receive compared to your investment. Think of it as the yield on your capital. Example: If you invest $2M and your cash flow is $140,000 per year, your CoC is $140K ÷ $2M = 7%. . This tells you how well your money is working for you in terms of yearly cash flow. Equity Multiple (EM) The EM measures how much your investment grows over time. An EM of 2x means your investment has doubled in value. Example: After 5 years, if you invested $2M and earned $1M from the sale plus $700K in cash flow, your total profit is $1.7M. The EM would be ($1M + $700K + $2M) ÷ $2M = 1.85x. We aim for a 2.5x EM minimum for apartments and 3x for hotels. Internal Rate of Return (IRR) The IRR is the annualized rate of return that factors in the time value of money. A 2x EM over 5 years typically translates to an 18% IRR, and we aim for 15-20% IRR for our investors. These numbers give you a clear picture of whether a property is a good investment. Want to learn more? Join our webinar tomorrow, October 16 at 8 PM EST to learn how to analyze apartment and hotel deals like a pro. Comment "Analyze" below and I'll give you the link to register.

Over the past 25 years, I’ve acquired more than 3,000 apartment units. I’ve learned a lot along the way, and I know how tricky it can be to find the right deal. Here’s my simple, step-by-step approach to analyzing multifamily deals: Step 1: Calculate the PROFORMA (Stabilized) Value. This is the value of the apartment after it reaches market rent and is operating smoothly. To calculate: -Take the gross proforma rent -Factor in the building’s age -Use the local market CAP RATE Example: If current rent is $1,000/month, but market rent is $1,300/month for a 100-unit, 50-year-old building in a 7% cap rate area, the calculation looks like this: Proforma Value = [$1300 x 12 x 100 units x (1 - 50% operating expenses)] ÷ 7% cap rate = $11.14M If the asking price is too far above the proforma value (let’s say they’re asking $15M), I’ll walk away. No point wasting time if it’s not a good deal. But if the asking price is reasonable, say $9M, and I estimate $10K per unit for renovations (totaling $1M), bringing my all-in cost to $10M, I’ll move on to Step 2. Step 2: Calculate the Property’s Returns. There are two ways to profit from a property: -Cashflow -Profit from resale For resale, let’s say I sell in 5 years. I’ll net around $1M ($11M - $10M). Now for cashflow: -Assume an interest-only loan at 8% with 20% down. -Proforma NOI = $780,000 -Debt service = $640,000 -Stabilized cashflow = $140,000 Step 3: Calculate Key Metrics. Next, I calculate Cash-on-Cash Return, Equity Multiple, and IRR. I’ll break these down in more detail in the next post. Comment below and I'll tag you once it's up so you don't miss it.

Ever wonder why I prefer owning apartment units over houses? It’s not just about the numbers—it’s about working smarter, not harder. Here’s how apartments have made my life easier and more profitable: 1. Less Hassle, More Freedom Managing rentals can turn into a full-time job when you’re dealing with multiple single-family homes. But with apartment buildings, especially those with 50+ units, it’s different. They generate enough income to hire a property manager and maintenance team. That means fewer tenant calls and issues for you, so you can focus on growing your portfolio. 2. Build Wealth FasterWith single-family homes, you’re often limited by market value. A $200K house will only sell for so much, no matter how much you improve it. But with apartments, you can increase value just by reducing expenses or boosting rents. For example, cutting costs by just $50 per unit in a 100-unit building can add $1.2M in value in a 5% cap market. That kind of scale is tough to achieve with houses. 3. Raising Capital is EasierBanks usually want to see 20% down from your savings for a house purchase. But with apartments, they’re more open to letting you raise that down payment from private investors. It makes it much easier to seize opportunities, even if you don’t have all the cash up front. Now, don’t get me wrong—houses have their benefits. They’re easier to sell if you need to cash out fast, and house hacking can be a great starting point. But if you’re looking to scale up, earn more, and spend less time managing tenants, apartments and hotels are the way to go. 💬 Want to learn how to make your first apartment deal happen? Comment "I'm in" and I’ll send you the link to register for my FREE webinar tomorrow, October 9 at 8 PM EST: How to Buy Your First Apartment Deal. Don’t miss it!

Don’t let a lack of wealthy connections hold you back. Social media gives you the power to connect with investors, no matter your background or network size. The key? Attraction marketing—leveraging social media to put out valuable content that positions you as a thought leader and expert. What is Attraction Marketing? It’s all about sharing insights and value so that investors seek you out. Instead of chasing down high-net-worth individuals or cold calling, you’re drawing the right people to you. But here’s the thing—you can’t just wing it. Raising private capital, especially for real estate, is regulated by the SEC (Securities and Exchange Commission), and you need to follow the rules. For example, if you post something like, “Invest $25K and get a 10% return,” without the proper SEC exemptions and disclosures, you could be looking at serious fines or even jail time. So, how do you stay compliant while using social media to raise capital? Here are some questions you might have: -What social media posts are SEC-compliant? -How can I position myself as an expert, even if I’m new to investing? -Can Attraction Marketing work outside of social media? If so, how? Join me tomorrow, October 2 at 8 PM to get all the answers and learn how to raise millions of OPM 'Other People's Money.' Drop “Webinar” in the comments below, and I’ll give you the link to register.

In 2003, I hit rock bottom. Lost all my rental properties, my home, and ended up homeless.But I knew I wanted back into real estate. With no cash and terrible credit, my only option was using OPM—Other People’s Money—and OPC—Other People’s Credit. Here's how I raised private capital: 1. I ATTRACTED people with money. I made myself visible and showed value. 2. I learned how to PERSUADE investors. It’s about trust and showing them the upside (as well as the downside). 3. I KEPT in touch. While I SEARCHED for the deals, I kept building those relationships. 4. I used the RIGHT LEGAL DOCUMENTATION to raise capital the smart way. 5. I STRUCTURED the deals so both sides won. Investors got what they wanted, and I made sure it worked for me too. 6. I worked hard. Once they made money, they kept coming back—and brought new investors with them. If I could do it with nothing, why can’t you? What’s holding you back from raising private capital?