Modules
Did you know that even a $10 or $20 increase in rent could have a huge effect on the value of your property? If not, you’ll be shocked once you see how simple it is. In addition to learning the affects of a rent increase, you’ll also learn all of the key financial formulas you need to know. Rod will take you step by step through detailed examples of each. Even if you hate math, you’ll be sure to quickly understand how to use these formulas, and why they’re crucial to your success in multifamily.
Every formula is covered in depth, but special emphasis is put onto the Cap Rate. Rod will give a comprehensive lesson on what this often confusing term really means, and why you need to know it. You’ll learn seven of the primary drivers that affect a property’s cap rate, as well as average cap rates for each property class.
Rod also shows you an exciting comparison of how two totally different properties, both in class and size, could have much different cap rates but the same value.
Lastly, you’ll learn how to determine market cap rates and what the easy to remember “IRV” formula is and how it will greatly help you.
In this video you’ll learn:
• LTV – Loan To Value
• NOI – Net Operating Income
• Capitalization rates including:
• What they are
• What they’re affected by
• How class A – D effects cap rates
• Average cap rates
• Cap rate trends
• Cap rates based on size of market
• Comparing two properties with different cap rates but same value
• Determine value using NOI and cap rate
• How to determine the market cap rate
• The “IRV” formula
• The effect of a small rent increase example
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