Multifamily Real Estate
I am very interested in learning about the advertising and marketing of this business model as well as some general knowledge I wanna hear from you guys how it all goes down. Here are some examples of what I mean in the form of scenarios and questions (some of my questions may be dumb so sorry early on lol)

Who's investing in these properties? Is it real estate investors and families looking for a place to live?

Who or what kind of person usually owns these complexes?

Approximately how much money do these complexes make on average?

How much do they spend on advertising?

What types of things should be in the ads?

I have so many more questions and I'll be researching these things after this post but I wanna learn as much as possible from others, so that's why I posted here.

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[{"id": "ed8xifm", "text": "https://www.biggerpockets.com/renewsblog/category/investing/", "replies": [], "depth": 1}, {"id": "ed9dfaw", "text": "Here are some starter resources:\nMultifamilyUniversity.com\nWheelbarrow Profits podcast (Jake &amp; Gino)\nhttps://www.yarusiholdings.com/podcast/", "replies": [], "depth": 1}, {"id": "ed9zs72", "text": "PM sent", "replies": [], "depth": 1}, {"id": "edb6jpm", "text": "Typically real estate is the least consolidated business, meaning no few companies own a majority of the real estate, or even all the commercial buildings for that matter. I believe the biggest apartment owner has over 300,000 rental units in this country but even that is nothing compared to the overall stock.\n\nYou will likely not find much spent on advertising until you go up to the very new, very big apartment complexes. And even then, a huge banner across the side is usually one of the most effective ways to advertise.\n\nHow much money does an apartment complex make depends on many factors. First, if there is a large bank loan or no bank loan could be the difference of thousands to millions of dollars per year. We typically refer to the cap rate when discussing commercial real estate. Cap rate tells us what percentage return a building produces at its current market value assuming there is no debt on the property. I would argue most investors use debt on commercial real estate but debt will vary by owner and so there is no way to effectively compare building values, while somehow standardizing debt.  \n\nIn very desirable areas of very desirable big cities, you can see some buildings only producing 3% of their market value per year before paying any mortgage. So if I owner a $10m building without any loans on it, I could expect $300,000 in cash flow per year. In much less desirable areas, where crime is higher, or population growth has stalled, you might find apartment buildings that produce 8% of their market value, after expenses but before paying any mortgage. In the previous example, that would mean $800,000 in cash flow per year.\n\nWhen investors look at a real estate deal, they rarely just look at the cash flow it would throw off each year. While cash flow is important, there are three other very important factors:\n\n1. Appreciation- if that $10m building was situated in an area that was experiencing significant population and job growth, the building may appreciate in value by 20% over the next 4 years. That would be a $2m gain if it was sold after that time. This is the riskiest factor to use when investing because it is so variable and so many factors can send values up or down.\n\n2. Tax deductions- if you made $300,000 off of a $10m building each year, you would likely pay zero to very little in income taxes. If you just made $300k a year in salary, you would likely pay a minimum of $100k in taxes. It is even possible for real estate to generate tax offsets for other income, depending on the situation. The reason we have these tax deductions is something called depreciation. The basic idea is that physical things deteriorate over time. The government allows you to take 1/27.5 of your buildings value as a tax deduction each year. The kicker is that if you maintain your building well, real estate has historically appreciated, rather than depreciate of long periods of time.\n\n3. Principal reduction- i know I mentioned that we do not use debt when calculating cap rates (i.e. valuing buildings) but that does not mean that debt is a bad thing. In fact, debt can be a very good thing for business purposes. If I have debt on a building, then cash flow is not my only profit each year, paying down the debt is also profit. Each mortgage payment is going to pay the lender interest and also reduce the loan balance. If I have a fully amortizing 25 year mortgage, then in 25 years, even if there was very little cash flow, I will have paid down the entire mortgage. So in the example above, 25 years after getting my $8m mortgage on the $10m building, I will have paid off the mortgage. If the market value has not changed at all, then if I sold the building, I would have made $8m.\n\nI hope this was helpful. This is only scratching the surface of real estate investing. Feel free to pm me.", "replies": [{"id": "ede3e23", "text": "Who owns 300k units? Thought the largest owners had 100k according to the NMHC owners list.\n\nGood post.", "replies": [{"id": "ede3peb", "text": "Looks like you are correct. I must have been looking at units under management when I saw it awhile ago.", "replies": [], "depth": 3}, {"id": "edsotm6", "text": "\u201cAccording to the National Multi Housing Council (NMHC), the top 50 apartment owners in the United States in 2013 had an ownership interest in 2.90 million units, approx. 16% of the national apartment stock. Among these owners, ten are publicly traded REIT\u2019s, accounting for 552,846 apartments or 19% of the units covered in the 2013 NMHC survey.\u201d", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}]