What Is A Good Profit Per Unit (PPU) in Multifamily Real Estate?

Jake & Gino: Real Estate Investing & Multifamily

Jake & Gino

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

4.9 • 842 Ratings

🗓️ 15 May 2023

⏱️ 12 minutes

🔗️ Recording | iTunes | RSS

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Summary

In this podcast, Jake and Gino, your hosts and multifamily real estate experts, will be diving into the intriguing topic of Profit Per Unit (PPU) in Multifamily Real Estate. Whether you're a seasoned investor or just starting out in the real estate market, understanding the concept of Profit Per Unit (PPU) is vital to evaluating the financial success of your multifamily property investments. Join Jake and Gino as they break down the key factors that contribute to a good PPU and provide you with valuable insights to make informed investment decisions. We explore the various elements that influence PPU, such as rental income, operating expenses, vacancy rates, and market trends. We emphasize on the importance of thorough market research, effective property management strategies, and optimizing rental rates to maximize profitability. Jake and Gino, with their extensive experience in multifamily real estate, will also share practical tips and industry best practices that can help you improve your PPU and boost your overall investment returns. From increasing property value through renovations to implementing cost-effective maintenance strategies, they've got you covered. If you're ready to take your multifamily real estate investing to the next level and want to achieve a good PPU, this podcast episode is a must-listen. Jake and Gino are here to empower you with the knowledge and tools you need to make smarter investment decisions and unlock the full potential of your multifamily properties. Don't miss out on this valuable opportunity to gain a deeper understanding of Profit Per Unit (PPU) in multifamily real estate. Subscribe to our channel, hit the notification bell, and join Jake and Gino on this enlightening journey towards financial success in the multifamily real estate market. #MultifamilyRealEstate #ProfitPerUnit #RealEstateInvesting #PropertyInvestment #RealEstateTips 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	Gang, if you're looking for ultimate freedom, and that's what I think a lot of multifamily investors are looking for, you go out, you buy a deal that has high PPU.
0:08.5	You're going to create freedom for yourself.
0:10.3	That's the real goal here.
0:38.2	Yeah. Hello! Hello! Jake and Gino here, and today we are discussing what is a good profit per unit. Gang, as you know, we own apartments and most important number to us, bar none, is what profit do we make
0:43.8	per apartment unit? So many times you hear about cap rate or cash on cash return or price per unit,
0:49.6	but the one term that we never hear is profit per unit. We call it PPU.
0:54.8	Today we're going to break down what a good profit per unit is and try to understand why this is lacking from the multifamily lexicon.
1:03.8	Gina, how's it going?
1:05.0	Jake, I'm doing good.
1:05.9	I'm ready to jump into this bad boy.
1:07.5	You know why?
1:08.6	We were on stage six months ago and we asked the question on
1:12.2	stage. And it was a, I remember the event was a syndicators event, a lot of syndicators out there.
1:16.7	We asked them, by a show of hands, how many of you have a byerite criteria? And it was crickets.
1:22.7	And we should have asked, how many of you have a PPU number? And that would have been crickets too. Profit per unit goal.
1:29.2	Yeah. Yes. And the reason why is real estate over the last few years with the type of market
1:35.1	cycle we've been in, all of a sudden a lot of these investors just poo poo cash flow. Cash flow is not around
1:40.4	anymore. They just understand. They don't understand how to actually invest for cash flow
1:44.7	and they don't understand the long game. All they're doing is looking to flip these apartments and there's
1:49.5	no cash flow involved. There's no longtermism involved. So obviously, if you're not looking to do that,
1:54.1	which is fine. I'm not saying that strategy is good or bad. I just think you're just missing out
1:58.8	on the golden goose. If you're out there buying one of
	...

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