All Forum Posts by: Robert Martinez

Don't ever be ashamed or apologize for wanting more information and wanting to grow. I had a new investor reach out to me with some basic questions.  He did not understand the model of investing in an apartment deal and how things work with owner/operations & management side.  However, he was hungry to learn and ask his questions.   If you aren't sure where to start when looking for a place to invest your money and hedge off the incoming inflation from all the printed money. Real estate and apartments are a strong place to be.  

What are the questions a newer investor looking to invest into apartments should ask?

It is the little things. They have such a profound correlation. This is where the Jokey matters in the horse race! Glad I can help others. 

Me. I own and operate Rockstar-Capital.com We own and operate over 420 Million in assets that is comprised of 4200 units.  We target a 3x equity multiplier of our investors in a 7 to 10 year hold period. As an owner operator I understand what it takes and how to handle the wars that investors face as owner operators. I also put my money into each and every deal. So I am an investor ensuring I take care of my "kids" future money. 

I look forward to hearing from you. 

They have some great due diligence aps out there to help you track as well. Checking is one of the first things to do. Making sure there are no bellies or potential cracks that may not be seen, but can be a huge cost and problem down the road. Be sure to checking heating and cooling systems as well. Last thing you want to do is have you heat go out in a cold front. 

Like @Todd Dexheimer review the contracts in place. Washer/Dryer, Internet, Cable, Vending, Amazon, etc.. 

I hope you have a water conservation in your plans to add value quickly. 

Good luck with your purchase!

We like to use a little thing we call the magic formula. $1/Cap Rate = Valuation

At a 6% Cap Rate, Every Dollar of Income is Worth $16.67 in Value. Why this matters to an investor when looking at a syndicator is to forced appreciation or added value. For example $30/month profit on flat-rate utility. On 272 unit property. Would equal $8160 x 12 months = $97,920.00 

$97,920/6%= $1,632,000 added value!! This little nugget is definitely a GOLD mine.

We like to use a little thing we call the magic formula. $1/Cap Rate = Valuation

At a 6% Cap Rate, Every Dollar of Income is Worth $16.67 in Value. Why this matters to an investor when looking at a syndicator is to forced appreciation or added value. For example $30/month profit on flat-rate utility. On 272 unit property. Would equal $8160 x 12 months = $97,920.00

$97,920/6%= $1,632,000 added value!! This little nugget is definitely a GOLD mine.

What do you look for when investing your money into an apartment deal? 

What do you look for in your returns? 

Do you diversify syndicators? 

Do you like them to be owner operators as well?

Value or Yield? 

We are nearing the finish line on our 458 unit multifamily acquisition in Houston TX. Join us as we review the due diligence items and discuss our plan of attack to add value to this property. 

With a 5.5 interest rate it is definitely worth looking into a refi.