Andrew Syrios

Cap Rates Are Fake (mostly)

7/7/2022

Cap rates... the be all, end all of commercial real estate analysis. This simple little calculation is considered oh so important.

Net Operating Income / Total Price of Property = Cash Flow

Well, unfortunately, cap rates are fake. OK fakeish. For internal analysis, sure, they're helpful. But for comparing and analyzing different commercial properties, there's just too much blurriness for them to give a great picture of what's going on. In this video, we explain why cap rates are, for the most part, fake.

Click here to see the whole video!

For more, please subscribe to our YouTube channel.

Also, check out Andrew's Substack: https://andrewsyrios.substack.com/

Check out our other videos:
Pro Formas Are Fake
The Most Important Law of Investing | The Rule of 72
Are Real Estate Calculations Any Good? | Grading the 70% Rule, 50% Rule and 2% Rule
BRRRR No Longer Works... But This Does | Investing in Real Estate Beyond BRRRR
What Do I Do When a Tenant Doesn't Pay Rent?
How to Find a Real Estate Deal with No (or little) Money
Don't Get Discouraged: How to Find Deals in a Super Hot Market
There Is NOT Going to be a Tsunami of Evictions | Eviction Moratorium Ending (Eventually)
Action Comes BEFORE Motivation | A Syrios Book Review: So Great They Cant Ignore You
Regret is a Choice | How to Deal with Regret When Investing (and with life in general)

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Pro Formas Are Fake

6/30/2022

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What else needs to be said?

Yes, you want to build a pro forma of any investment property you are looking at, but you should never rely on a seller-provided pro forma. They're all fake. Indeed, since everyone knows they're fake, even an honest seller/agent has to provide a fake pro forma because if they don't, buyers will just assume the realistic prediction is fake as well.

So, never trust a pro forma. Instead, we'll tell you what to look for from a seller and how to build your own.

Joe Fairless' book: https://www.amazon.com/Best-Ever-Apar...

Basic Components of Pro Forma:
Gross Income
- Vacancy
- Economic Vacancy (delinquency)
+ Other Income (i.e. laundry, app fees, etc.)

Fixed Expenses
- Property Taxes
- Property Insurance
- Utilities Variable Expenses
- Property Management Fee
- Maintenance - Contract Services
- General Administration
- Marketing
- Payroll (for onsite management)
- Recurring CAPEX

Click here to see the whole video!

For more, please subscribe to our YouTube channel.

Check out our other videos:
How to Positively Resolve Tenant Disputes (Property Management)
Why and How to Screen Prospective Tenants
How to Manage Collections and Delinquency (Property Management)
A Guide to Due Diligence for Buying Houses
How to Find a Bank to Refinance Your Investment Property
Is the Economy on the Edge of a Cliff??? How Should Real Estate Investors Respond?
Buying Portfolios of Houses
The Case for Buy and Hold Real Estate Investment

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The Most Important Law of Investing | The Rule of 72

6/23/2022

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The most important law to keep in mind when plotting your investment strategy is luckily a simple one: The Rule of 72.

72 / R = T

Or, in other words, 72 / Interest Rate = Time to Double Your Money Understanding this rule and its implications makes it clear how important it is to go for strong returns while also making it obvious that growing wealth is a long term game and large risks/speculation are unwise. All real wealth generation strategies are get rich slow ones (real estate simply being the best of them).

Click here to see the whole video!

For more, please subscribe to our YouTube channel.

Also, check out Andrew's Substack: https://andrewsyrios.substack.com/

Check out our other videos:
Are Real Estate Calculations Any Good? | Grading the 70% Rule, 50% Rule and 2% Rule
BRRRR No Longer Works... But This Does | Investing in Real Estate Beyond BRRRR
What Do I Do When a Tenant Doesn't Pay Rent?
How to Find Private Lenders and Refinance BRRRR Deals | Part 5: Bill Syrios Presentation at MAREI
How to Manage Rentals as a Real Estate Investor | Part 4: Phillip Syrios Presentation at MAREI
How to Estimate Rehab Costs and Oversee Contractors | Part 3: Andrew Syrios Presentation at MAREI
How to Find, Evaluate and Acquire Real Estate Deals | Part 2: Andrew Syrios Presentation at MAREI
How to Find a Real Estate Deal with No (or little) Money
How to Find Your FIRST Private Lender | Real Estate Investing 101

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Are Real Estate Calculations Any Good? | Grading the 70% Rule, 50% Rule and 2% Rule

6/16/2022

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Real estate investors have made a couple of simple rules for evaluating properties. Of those, the most popular are the 70%, 50% and 2% rules:

- 70% Rule: (After Repair Value x 0.7) - Repairs = Maximum Allowable Offer
- 50% Rule: Gross Operating Income x 0.5 = Gross Operating Expenses (or NOI)
- 2% Rule: Monthly Rent / 0.02 = Maximum Allowable Offer

But are the calculations helpful? Are these rules any good? Well, I'm glad I asked on your behalf. In this video, Phillip and I will tell you the unvarnished (and slightly melodramatic) truth.

Click here to see the whole video!

For more, please subscribe to our YouTube channel.

Also, check out Andrew's Substack: https://andrewsyrios.substack.com/

Check out our other videos:
BRRRR No Longer Works... But This Does | Investing in Real Estate Beyond BRRRR
What Do I Do When a Tenant Doesn't Pay Rent?
How to Find Private Lenders and Refinance BRRRR Deals | Part 5: Bill Syrios Presentation at MAREI
How to Manage Rentals as a Real Estate Investor | Part 4: Phillip Syrios Presentation at MAREI
How to Estimate Rehab Costs and Oversee Contractors | Part 3: Andrew Syrios Presentation at MAREI
How to Find, Evaluate and Acquire Real Estate Deals | Part 2: Andrew Syrios Presentation at MAREI The Mindset Real Estate Investors Must Master to Succeed | Part 1: Bill Syrios Presentation at MAREI
How to Find a Real Estate Deal with No (or little) Money
Don't Get Discouraged: How to Find Deals in a Super Hot Market
There Is NOT Going to be a Tsunami of Evictions | Eviction Moratorium Ending (Eventually)

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BRRRR No Longer Works... But This Does | Investing in Real Estate Beyond BRRRR

6/9/2022

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The BRRRR Strategy (Buy, Rehab, Rent, Refinance, Repeat) has been very good to us. But unfortunately, all good things must come to an end. And by that, I mean temporarily on the sidelines. The BRRRR strategy is in hibernation.

The market is simply too hot to "BRRRR out" consistently. Instead, the advantage in this market is to take advantage of historically low interest rates. Rates that are somehow substantially lower than the rate of inflation.

Click here to see the whole video!

For more, please subscribe to our YouTube channel.

Checkout our other videos:
How to Positively Resolve Tenant Disputes (Property Management)
Why and How to Screen Prospective Tenants
How to Manage Collections and Delinquency (Property Management)
A Guide to Due Diligence for Buying Houses
How to Find a Bank to Refinance Your Investment Property
Is the Economy on the Edge of a Cliff??? How Should Real Estate Investors Respond?
Buying Portfolios of Houses
The Case for Buy and Hold Real Estate Investment
Should You Manage Your Own Property or Hire a Property Manager?
Doing Maintenance Right | Property Management

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What Do I Do When a Tenant Doesn't Pay Rent?

6/2/2022

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Even the best laid plans can sometimes fail. And even properly screened tenants sometimes don't pay rent. (Although usually, when they stop paying it's because you didn't screen well enough.)

But fear not. There are steps you can take to mitigate the losses and make a bad situation as little bad as possible for both you and your tenant. Just make sure to create policies and stick to them.

Click here to see the whole video!

For more, please subscribe to our YouTube channel.

Also, check out Andrew's Substack: https://andrewsyrios.substack.com/

Check out our other videos:
How to Find a Real Estate Deal with No (or little) Money
How to Find Your FIRST Private Lender | Real Estate Investing 101
Don't Get Discouraged: How to Find Deals in a Super Hot Market
There Is NOT Going to be a Tsunami of Evictions | Eviction Moratorium Ending (Eventually)
Action Comes BEFORE Motivation | A Syrios Book Review: So Great They Cant Ignore You
Regret is a Choice | How to Deal with Regret When Investing (and with life in general)
The One Trait That Separates the Wealthy and Those Buried in Debt
Don't Just Sit on the Sidelines. Time in the Market Beats Timing the Market

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How to Find Private Lenders and Refinance BRRRR Deals | Part 5: Bill Syrios Presentation at MAREI

5/26/2022

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Here is my father's second presentation at the Midwestern Association of Real Estate Investors on how to find private lenders and everything real estate investors need to know about financing. The presentation took place back in 2015 but is still every bit as important today.

Click here to see the whole video!

For more, please subscribe to our YouTube channel.

Also, check out Andrew's Substack: https://andrewsyrios.substack.com/

Check out our other videos:
How to Manage Rentals as a Real Estate Investor
How to Estimate Rehab Costs and Oversee Contractors
How to Find, Evaluate and Acquire Real Estate Deals
The Mindset Real Estate Investors Must Master to Succeed
How to Find a Real Estate Deal with No (or little) Money
How to Find Your FIRST Private Lender | Real Estate Investing 101
Don't Get Discouraged: How to Find Deals in a Super Hot Market
There Is NOT Going to be a Tsunami of Evictions | Eviction Moratorium Ending (Eventually)
Regret is a Choice | How to Deal with Regret When Investing (and with life in general)
The One Trait That Separates the Wealthy and Those Buried in Debt

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How to Manage Rentals as a Real Estate Investor | Part 4: Phillip Syrios Presentation at MAREI

5/18/2022

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Here is Phillip Syrios' presentation for the Midwestern Association of Real Estate Investors on everything a real estate investor needs to know about property management and how to manage your own properties (or oversee a third party manager). The presentation took place back in 2015 but is still very relevant today.

Sorry for the lower quality video on this one.

Click here to see the whole video!

For more, please subscribe to our YouTube channel.

Also, check out Andrew's Substack: https://andrewsyrios.substack.com/

Check out our other videos:
How to Estimate Rehab Costs and Oversee Contractors
How to Find, Evaluate and Acquire Real Estate Deals
The Mindset Real Estate Investors Must Master to Succeed
How to Find a Real Estate Deal with No (or little) Money
How to Find Your FIRST Private Lender | Real Estate Investing 101
Don't Get Discouraged: How to Find Deals in a Super Hot Market
There Is NOT Going to be a Tsunami of Evictions
Action Comes BEFORE Motivation
Regret is a Choice | How to Deal with Regret When Investing (and with life in general)
The One Trait That Separates the Wealthy and Those Buried in Debt

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How to Estimate Rehab Costs and Oversee Contractors

5/11/2022

Comments

This is my second presentation for the Midwestern Association of Real Estate Investors on how to budget and oversee a rehab project as well as how to find good contractors. The presentation took place back in 2015 so the prices are a bit low. Inflation sucks, I know.

Click here to see the whole video!

For more, please subscribe to our YouTube channel

Check out our other videos:
How to Find a Real Estate Deal with No (or little) Money
How to Find Your FIRST Private Lender | Real Estate Investing 101
Don't Get Discouraged: How to Find Deals in a Super Hot Market
There Is NOT Going to be a Tsunami of Evictions | Eviction Moratorium Ending (Eventually)
Regret is a Choice | How to Deal with Regret When Investing (and with life in general)
The One Trait That Separates the Wealthy and Those Buried in Debt
Don't Just Sit on the Sidelines. Time in the Market Beats Timing the Market
The Lockdowns Did Not Work. Stop Doing Them.
The Dollar is NOT Going to Hyperinflate... But This Will Happen Cryptocurrencies Are Godawful... (currencies that is)

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How to Find, Evaluate and Acquire Real Estate Deals | Part 2: Andrew Syrios Presentation at MAREI

5/5/2022

Comments

This is my first of two presentations for the Midwestern Association of Real Estate Investors on how to value, find and acquire real estate deals. The presentation took place back in 2015 so it is a bit dated, particularly the prices. But the information is still very much relevant.

Click here to see the whole video!

For more, please subscribe to our YouTube channel.

Check out our other videos:
The Mindset Real Estate Investors Must Master to Succeed
How to Find a Real Estate Deal with No (or little) Money
How to Find Your FIRST Private Lender | Real Estate Investing 101
Don't Get Discouraged: How to Find Deals in a Super Hot Market
There Is NOT Going to be a Tsunami of Evictions | Eviction Moratorium Ending (Eventually)
Regret is a Choice | How to Deal with Regret When Investing (and with life in general)
The One Trait That Separates the Wealthy and Those Buried in Debt
Don't Just Sit on the Sidelines. Time in the Market Beats Timing the MarketThe Lockdowns Did Not Work. Stop Doing Them.

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The Blog of ANDREW sYRIOs

Cap Rates Are Fake (mostly)

Pro Formas Are Fake

The Most Important Law of Investing | The Rule of 72

Are Real Estate Calculations Any Good? | Grading the 70% Rule, 50% Rule and 2% Rule

BRRRR No Longer Works... But This Does | Investing in Real Estate Beyond BRRRR

What Do I Do When a Tenant Doesn't Pay Rent?

How to Find Private Lenders and Refinance BRRRR Deals | Part 5: Bill Syrios Presentation at MAREI

How to Manage Rentals as a Real Estate Investor | Part 4: Phillip Syrios Presentation at MAREI

How to Estimate Rehab Costs and Oversee Contractors

How to Find, Evaluate and Acquire Real Estate Deals | Part 2: Andrew Syrios Presentation at MAREI

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