3 Ways to Value Real Estate: Which One Will Maximize Your Returns?

In this episode of The Multifamily Investor Playbook, Mark Faris and John Makarewicz break down the three key methods for valuing real estate, with a spotlight on the income approach – a predictable and low-risk strategy preferred by banks and experienced investors.

About This Episode

In this episode of The Multifamily Investor Playbook, Mark Faris and John Makarewicz break down the three key methods for valuing real estate, with a spotlight on the income approach – a predictable and low-risk strategy preferred by banks and experienced investors.

They discuss how multifamily properties are valued differently from residential real estate, making them less susceptible to market fluctuations and more stable for long-term returns. Mark and John also explore the impact of economic trends, like interest rates and cap rates, on multifamily investments and why maintaining high standards is crucial for effective operations and maximizing net operating income (NOI).

Here’s what you’ll learn:

  • The three methods of real estate valuation: direct comparison, cost, and income approaches.
  • Why NOI (Net Operating Income) is the ultimate driver of property value.
  • How savvy operators identify hidden opportunities like rent lifts and operational inefficiencies.
  • The role of leadership, high expectations, and operational excellence in real estate success.

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