Sep 8, 2017
Mit Scott and Greg Ford are business partners in the ownership
of a large apartment building in Irving, Texas. They originally
started with purchasing single family homes, then became passive
investors in other people’s transactions and now own a large
apartment building- while still maintaining their full time
Ricardo asked Mit: What appealed to you most about multifamily in comparison to single family? Mit thought that you could create ‘greater value’ in a multifamily acquisition than in a single family purchase. Your house is going to be worth relatively the same as your neighbor’s home regardless of the finish out or appliances. Your home value will be based on other closed sales of similar homes in the submarket. In the multifamily arena, the value of that business is based on how much income you can generate. The higher the Net Operating Income (NOI) the greater the value you will create on your apartment investment. Mit gives an example on how they created additional value by giving tenants the opportunity to rent parking spaces close to their units. The impact from this marginal parking income has an unbelievable impact on over-all value. Single family ownership is not scalable and apartment ownership is. Greg gives us a real example on how a reverse-1031 exchange works.
To contact: Mit Scott or Greg Ford firstname.lastname@example.org
To contact: Ricardo Hinojosa email@example.com
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