Listen "S1E9: Buying an Investment Property? Look before you leap with Alec Maghami"
Episode Synopsis
Alec Maghami talks with host John Chapman of the John Chapman Show about all the things you should know about purchasing an investment property. Alec explains the differences in buying real estate on the investing side versus a single family home, how every building has a story, the three different valuation metrics that institutional buyers use to calculate how much a property is worth, as well as the answers to debt-to-equity questions. Episode Highlights: Alec Maghami talks about his path to real estate. How did Alec transition into the acquisition side? Which sectors and asset classes does Alec Maghami enjoy the most? If someone has a burning desire to make an investment in a property, what should they be thinking about? Alec Maghami discusses the valuation metrics that differ when buying your home versus a pure investment property? How does Alec define a liquid market? What about debt-to-equity as a ratio should we generally be aware of? What are some of the unexpected costs associated with investment real estate? Which other things does Alec Maghami think we should consider with investment properties? 3 Key Points: We live real estate every day, it is a land + improvement. The three main valuation methodologies are sales comparison, income capitalization, and replacement costs. Some of the additional costs involved in real estate investment properties include Insurance, taxes, utilities, HOA dues, and the fact that real estate is not passive, it needs to be managed. Tweetable Quotes: “Office buildings always have the potential to be super sexy when we think of the constant real estate deal.”– Alec Maghami “The path to real wealth and intergenerational wealth is passive income.”– Alec Maghami “The idea of liquidity fundamentally is how big is the buyer pool out there to the extent that if you needed to sell the asset you could sell to.”– Alec Maghami Resources Mentioned: Linkedin: John Chapman Alec Maghami: Linkedin See omnystudio.com/listener for privacy information.
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