How To Quickly Analyze A Rental Property

Jake and Gino Multifamily Investing Entrepreneurs

Jake & Gino

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

5 • 831 Ratings

🗓️ 13 December 2021

⏱️ 6 minutes

🔗️ Recording | iTunes | RSS

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Summary

In this edition, Jake and Gino talk about how to quickly analyze a rental property. The key takeaways include the following: - Know your parameters of buying a property. It could be the present cashflow, job growth, demographics and more. Jake has explained most of the major parameters in the video. - NOI (Net Operating Income) is the Name of the Game. Gino has explained how it is being calculated, in the video. - Know your market in and out. Keep track of the cap rates. - We don’t lack motivation, we lack clarity. Don’t hesitate in getting in touch with the Jake & Gino team if you have any questions, doubts or anything that is holding you back. Visit jakeandgino.com/education to learn more. Want to know how you can begin Multifamily Investing? Join our free training now: https://jakeandgino.mykajabi.com/freetraining

Transcript

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0:00.0	Hello, everybody. Jake and Gino here. And today we're discussing how to quickly analyze a rental
0:10.3	property to get those greens. Gino. Gina, how you doing today? Jayne great. And when you need to
0:14.3	analyze rental property, it's the race to 80. Now, you may be asking yourself, what the heck is the race to 80?
0:19.6	You need to analyze any deals before you find one really good deal.
0:23.7	The quicker you can analyze deals, the quicker you're going to close on your next deal.
0:27.6	Guys, and here's the key.
0:29.0	We're going to get into the nuts and bolts of it because what we're doing today, we're sifting for the gold.
0:33.3	That is the key. When you're looking at these deals, you're sifting for the gold. And let's get into it right now, Gino. Can you do that again?
0:38.7	What are you talking about?
0:39.4	Pirate, sifting for the gold.
0:42.3	Let me tell you, my friend, there is a lot of gold in multifamily if you learn how to analyze these deals.
0:47.6	The first metric you're looking for, Mr. Sensiano, it's NOI.
0:51.4	What's N-I stand for?
0:52.7	Net operating income. It's all about you're trying to raise that
0:56.2	NOI. So how do you get N-O-I? You're basically looking at your total income, whatever your net
1:01.7	incomes. You take your total operating expenses. You get your net income, separate, subtracting your
1:07.1	operating expenses. That's what your net operating income is. Operating expenses is tricky for a lot of newbie beginners, right? Because what happens is, they're lumping in CAPEX into that. You know, you're repairing a floor is an operating expense. Fixing a toilet is an operating expense. But replacing a roof or you're actually buying a new toilet, those are capital expenditures. They go below the operating expenses. They go below the NOI.
1:27.8	So that's one big mistake that a lot of new investors made.
1:30.2	So be careful.
1:30.9	Look at what an operating expense is.
1:32.5	Remember, NOI is operating income, net divided by your operating expenses.
1:38.0	That's where you get your net operating income.
	...

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