IMHO, one can make money on real estate in 4 ways.

本帖于 2022-01-01 21:21:14 时间, 由普通用户 smlandlord 编辑

1. cash flow, as we all know, in any real estate business, cash flow is the #1 key to sustain a long-term real estate portfolio, it is also my main and only focus when comes to RE investments, as I currently collect little over 8.5 million in rent per annum, it gives me roughly 2-2.5 million in net operating incomes,  normally a mom and pop operation is the most efficient way, but that is at the expense of sweat labor,  from experience I found that between 60-80 is almost the perfect size for the small investors, itself can afford and hire an onsite manager and/or onsite maintenance, thus can further enhance your operation while you can be near hands-free.

2. operation efficiency, generally speaking, multi-family dwellings are more efficient than SFH operations, the reason being they are all in a single centralized location and with a similar setup, which can reduce inventory and overhead, in the bank's eye, a polished Pnl and balance sheet, can worth millions.

3. market appreciations, this is at God's will, but if you can push your operations beyond market CAP, it then translates into higher market value.

4. force appreciations, this is referring to value-add, by substantially improving the property, which will translate into higher rent collections,  meaning at a higher CAP and market value.

所有跟帖: 

明白了, 职业地主流水线式规模化的做法, 有点开希尔顿酒店的意思。 大谢九爷。 -harborsunset- 给 harborsunset 发送悄悄话 (286 bytes) () 01/01/2022 postreply 21:31:39

其实就是想scale,就 leverage OPT and OPM -smlandlord- 给 smlandlord 发送悄悄话 (0 bytes) () 01/01/2022 postreply 21:45:00

呵呵, 万枫JN论的真实应用。 -harborsunset- 给 harborsunset 发送悄悄话 (0 bytes) () 01/01/2022 postreply 21:51:48

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