How to Leverage the 1% Rule in Multifamily Investing | Jake & Gino "How To" Podcast

Jake and Gino Real Estate Entrepreneurs

Jake & Gino

Buyingapartmentbuildings, Investingsmart, Multifamilyrealestateinvesting, Business, Smartinvesting, Jakeandgino, Apartmentinvesting, Investing, Commercialrealestateinvesting, Makingmoney, Buyingrealestate, Realestateinvestment, Wheelbarrowprofits, Realestateinvesting, Cashflow

5 • 831 Ratings

🗓️ 3 July 2023

⏱️ 10 minutes

🔗️ Recording | iTunes | RSS

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Summary

Unlock the power of the 1% rule in multifamily investing with this insightful episode of the Jake & Gino "How To" Podcast. Watch as real estate experts Jake & Gino delve into the mechanics of the 1% rule and how it can serve as a crucial initial step in analyzing potential deals. In this podcast episode, you'll learn how the 1% rule — a simple yet powerful metric — can assist in evaluating whether a multifamily property's price aligns with its potential rental income. Jake and Gino will share how the rule has evolved in various market cycles, and why it should be just one component of a comprehensive buying criteria. But it's not all about the 1% rule! The duo discusses the importance of considering factors like property location, condition, and potential for renovation, offering invaluable insights into the nuances of multifamily investing. Whether you're a seasoned investor or just starting out, this video provides essential knowledge for making informed multifamily investment decisions. Join Jake and Gino as they explore this investment rule of thumb, providing examples from their own experiences to highlight its strengths and limitations. Don't miss the opportunity to learn from the experts! If you want to dig even deeper, visit jakeandgino.com/webinar to sign up for their upcoming webinar, and don't forget to check out the Multifamily Mastery 6 conference at jakeandgino.com/m6. Keywords: Multifamily Investing, 1% Rule, Real Estate Investing, Real Estate Education, Multifamily Properties, Jake and Gino, How To Podcast, Investment Strategies, Multifamily Mastery, Real Estate Market Cycle. We're here to help create multifamily entrepreneurs... Here's how: Brand New? Start Here: https://jakeandgino.mykajabi.com/free-wheelbarrowprofits Want To Get Into Multifamily Real Estate Or Scale Your Current Portfolio Faster? Apply to join our PREMIER MULTIFAMILY INVESTING COMMUNITY & MENTORSHIP PROGRAM. (*Note: Our community is not for beginner investors) 👉https://jakeandgino.com/apply About Jake & Gino Jake & Gino are multifamily investors, operators, and mentors who have created a vertically integrated real estate company. They control over $250M in assets under management. They have created the Jake & Gino Premier Multifamily Community to teach others a simple three-step framework for investing in multifamily real estate. Connect with Jake & Gino on the social media platform you are most active on: https://jakeandgino.com/link-tree/

Transcript

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0:00.0	So if you're saying yourself, I'm buying this asset for 100,000 a unit and rents are only 850,
0:04.8	well, it doesn't have the 1% rule and how it works.
0:40.5	Gang analyzing deals can be challenging when you're starting out.
0:42.9	There's no doubt about it.
0:44.3	So today we're going to discuss the 1% rule and how it can be used on the front end when you're sifting for that multifamily gold.
0:53.9	All right.
0:55.1	Gene, how's it going?
0:56.1	I'm doing great, Jake.
0:57.7	I love the analogy, sifting for gold.
1:00.9	And the 1% rule was the rage years ago when it worked.
1:05.3	And it still works in a lot of markets now.
1:07.3	I think as we've gotten into the market cycle and we've gotten into a seller's
1:11.9	market, rents haven't gotten as high as the cost per unit. I'm getting ahead of myself because I know
1:16.5	there's a lot of naysayers out there that are already saying at 1% rule, it doesn't work in my market.
1:20.7	What it is first though? They may not even know. I'm assuming that all of our listeners are savvy multifamily investors,
1:27.7	and a lot of them are and some of them aren't. And when I was introduced to the 1% rule,
1:32.2	for me, it was like Nirvana. It's like one of those rules of thumb, right? We like talking about
1:36.8	rules of thumb. And it's just one metric that you can use out of the many. And really,
1:42.8	the 1% rule, you're looking at rents
1:45.3	versus the cost per unit.
1:47.2	So very simply, if you're buying an asset
1:49.1	that is worth $100,000 per unit
	...

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