When buying Apartment buildings.. Keep your emotions in check

By
Commercial Real Estate Agent with Executive Realty Group

emotions in check Keeping your emotions in check is a good idea when buying Apartment buildings ( just a little food for thought)
Too many times investors walk into a deal with the mindset of a homeowner. This is a business, your major focus needs to be on cash flow, not what color the tenant painted his living room walls.

Be sure you really understand and can live by the time is money principle. When a tenant moves out always anticipate double the estimated time to fill the vacancy. If you factor this into your cash flow projections, you’ll never be caught short when the mortgage comes due.

Not getting advice from an expert. It is very important that you educate yourself. That doesn’t mean you should do it all yourself..... remember the old saying; “Jack of all trades and master of none”. Having a team consisting of a mortgage banker, Investor friendly realtor, inspector, lawyer and CPA.  In the beginning, most investors feel they can save money by doing things themselves, the opposite is true.  A good team can actually end up saving you money, time and frustration.


More articles that may be of interest:

Some Common mistakes Investors make when buying Apartment Buildings in Chicago.

Real Estate investing is still the best game in town.

5 Steps to get your Real Estate investments rocking in 2011.

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Kim McMahon

Commercial Realtor

Executive Realty, LLC

(630) 306-1057

www.investchicagonorthshore.com

 

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Rainmaker
733,403
Eileen Hsu
Douglas Elliman Real Estate - Manhattan, NY
LICENSED REAL ESTATE SALESPERSON

Hi Kim, excellent tips. Here in Manhattan New York, we always advise buyers to work with a team of experts such as CPA, Lawyers, Mortgage consultant(if needed) or other financial advisors if they intend to invest in Manhattan New York condos. 

Sep 14, 2011 03:47 AM #1
Rainmaker
177,491
Randy Schulenburg
Schulenburg Realty, Inc. - Pingree Grove, IL
Schulenburg Realty, Inc.

Good advice Kim.  Thank you.

 

Sep 14, 2011 03:53 AM #2
Ambassador
840,733
Charlie Ragonesi
AllMountainRealty.com - Big Canoe, GA
Homes - Big Canoe, Jasper, North Georgia Pros

Hye Kim thanks for an interesting post. And I am reading the articles you referenced as well. I work with folks who buy here so your information will be valuable

Sep 14, 2011 03:55 AM #3
Rainmaker
3,433,588
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hey Kim,  Love the picture, how did you do that?   Hope all is fine with you, have a great day!

Sep 14, 2011 05:19 AM #4
Rainmaker
811,832
Bruce Walter
Keller Williams Realty Lafayette/West Lafayette, Indiana - West Lafayette, IN

Kim, I like how you make your would be investors aware of all the important angles that one must KNOW answers to before taking the plunge into commercial investing!

                                                   

                                                       . . .  HEY KIM

 

                                                       

 

 

 

 

 

 

             DUCK!

Sep 14, 2011 08:18 AM #5
Rainmaker
421,409
Michelle Francis
Tim Francis Realty LLC - Atlanta, GA
Realtor, Buckhead Atlanta Homes for Sale & Lease

Kim, 

It's a whole different ballpark than a personal home.  Knowing how to maximize your profits and minimize your vacancies will make or break an investment property.  Maintenance is key, a better maintained property yields better tenants and an overall higher rent return. 

All the best, Michelle

Sep 14, 2011 10:39 AM #6
Rainer
85,164
Kim McMahon
Executive Realty Group - Skokie, IL

Ellen~ A team approach is always a better one and from the sounds of it - it's crucial in NYC

Randy~ Thanks for stopping by

Charlie~ Thands and I hope the information helps you and your clients

Bruce~ So your the one who started this with Gwen .... you know she's going to kick your arse!

Michele~ You are so right! It's unfortunate that many inexperienced investors count pennies and ultimately lose dollars - lots of them.

Sep 16, 2011 09:50 AM #7
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Kim McMahon

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