Investing in Commercial Multi-Family Properties within The South Florida Market
Real estate investment is an attractive alternative for those who are discouraged by the volatility of the stock market or who want to take more of an active role in growing their capital. For investors who are not interested in going so far as to play a part in the development of real-estate assets, investing in commercial multi-family properties is a strategy worth looking into. Multi-family real estate generates monthly income and a steady appreciation in value.
The three top reasons to invest in multi-family real estate include:
- You are in a position where it makes sense. If you have resources to invest, but you don’t have the time for a lot of involvement, this can be an excellent way to increase your return on investment.
- It’s a faster way to grow a portfolio. Purchasing multi-family property can be more efficient and cost-effective than buying and leasing multiple single-family units.
- More expensive, but easier to finance. Because multi-family real estate consistently generates cash flow on a monthly basis, it can be a more attractive risk to lenders. It can also result in a more competitive interest rate for the potential property owner.
JMK Property Investment’s collaborative and disciplined approach to investment properties is focused on exceeding every investment’s Net Operating Income (NOI). The goal is always to maximize our investors’ returns.
Net Operating Income
NOI is the profitability of income-generating real estate investments. It is a figure that is calculated by subtracting all operational expenses from the gross revenues and that excludes debt service. The NOI of a property helps real estate investors determine its capitalization rate. It is used to measure the value of the property and to compare it with other buying or selling considerations.
The NOI on investment is an indication of whether it is worth the expense of ownership and maintenance. To calculate it, all the operating expenses incurred on a property are subtracted from the revenue generated on that property. Some operating expenses can be manipulated if the owner chooses to defer or accelerate certain income and outflow items. NOI can be raised by increasing rents and other fees by updating the dwelling units and/or investing in rebranding, renovating, and repositioning. It can also be raised by lowering operating costs.
Rebranding, Renovating, Repositioning
Rebranding, renovating, and repositioning are tactics used to increase the NOI of commercial real estate.
- Rebranding involves changing up the image of the property to help distinguish it in consumers’ minds. This can be as simple as changing up the visuals related to the property like signage and stationary to hiring a professional operation to create a custom brand identity.
- Renovating encompasses physical upgrades made to the property for the sake of function, safety, and appeal. After property improvements are made, it can be a good time for a bit of rebranding.
- Repositioning refers to changing the position of a property in the marketplace. Changing the appearance, the operations, and the general attitude around a piece of commercial real estate can add value to this asset.
You can calculate the ROI of these strategies to help determine their effectiveness on NOI. It is possible to add value where there was little or none before.
Through the work of proven design and construction industry professionals, JMK Property Investment ensures that every property is tailored to the tenant market. Thoughtful and strategic in-house Rebranding, Renovating, and Repositioning benefits our investors. To learn more about multi-family investment opportunities within the south Florida market, contact JMK today.
What sets JMK Property Investment Apart
At JMK Property Investment, we only work with the best. Our team and network of expert real estate investors, design professionals, construction management, and financial partners impresses not only the investors who work with us, but also the community in which we develop.
The JMK Process
Whatever your property investment needs are, JMK has you covered. From financial services, to development, to property management and even maintenance, JMK has the established process, relationships and strategies for the most fluid execution of your projects.
Working with JMK Property Investments means you will work with industry experts in:
We are constantly balancing a pipeline of contracts under development while seeking new opportunities, whether for new development projects or investing into existing property.
Contact JMK today for a free property analysis, and to determine just how much value JMK can create.