4 Factors to Keep in Mind When Investing in Apartment Complexes

This article originally appeared on https://steventaylorlandlord.com/4-factors-to-keep-in-mind-when-investing-in-apartment-complexes/

When considering investing in anything, according to Steven Taylor of Taylor Equities , the question you should always ask is: Why is this a good deal? A good deal isn’t just about numbers – a good deal has a compelling story and makes sense. Is the property mismanaged? Stressed? Under foreclosure? The facts should tell a story that explains why the property has value. Developing the instinct to recognize a good deal takes time, but with research, study, and experience you can learn to find the right investments.

Here are four factors to keep in mind when investing in apartment complexes.

1. Cash Flow

The probability of cash flow is a crucial factor to consider. It is important to evaluate how the property will generate cash flow in comparison to other potential properties. To start, ask yourself these questions:

• What is the strength of the rental market in the area?
• What type of market you are buying into (For example, C class buildings often have higher rates of tenant turnover. They can also call for more maintenance and repairs.)
• Financing (How much money are you putting down? What is the interest rate? What type of loan?)

2. Equity

The next thing to consider is if the apartment complex you are purchasing holds equity. If the property doesn’t have equity, can you create it?  Equity in a property can take many forms. A few to look for are:

• Discounted listing price
• Foreclosure
• Upside potential (Fixer-upper)
• Poor management
• Opportunity for rezoning

While there are ways to create equity, you are better off buying into it. Be on the lookout for motivated sellers who... continue reading on Steven Taylor of Taylor Equities

Steven Taylor of Taylor Equities on Investing in Real Estate During a Recession

Steven Taylor Taylor Equities- Investing in Real Estate During a Recession

This article originally appeared on 

https://steventaylorla.kinja.com/steven-taylor-of-taylor-equities-on-investing-in-real-e-1843247143

In the face of the COVID-19 crisis, many young entrepreneurs are questioning whether they should invest in real estate during a recession. While there will always be pros and cons to investing in any market, I’m here to share what I’ve learned over the years about the best time to invest.

Steven Taylor ofthe real estate group, Taylor Equities, says, “there will always be opportunity in a down market, and there will always be a down market coming...eventually”. The important thing is to wait for the right opportunity, not just the right timing. Investors in the multi-family or rental sectors will most likely experience multiple recessions over the lifetime of their career. Worrying about or waiting for a recession shouldn’t stop you from investing. Of course, you should consider the market, but the most important factors should always be the value of the property and the opportunity for growth -- regardless of when you buy. 

If you know what to look for, you can find a good deal in any market. Let’s take a quick look at the pros and cons of investing in real estate during a recession.

Pros of Investing in Real Estate During a Recession

-       If you find a property you are interested in during a recession, you may just be able to negotiate a better deal. Sellers may be more desperate to get a property off their hands if they need the money in a depressed market, especially if the building has been listed for a while.

-       When the stock market is doing poorly, many investors find real estate investing to be a safer bet. In a time of uncertainty, real estate investing tends to be a more predictable income stream than many other options. Even when the market is down, people need properties to live in and to run their businesses. Real estate is a market that will always exist.

-       Investing in a property or even a real estate investment trust can diversify your portfolio during trying times. Continue reading

Steven Taylor - Why I Started Taylor Equities

Steven Taylor of Taylor Equities with his family at the Walk to End Alzheimer's

As an established real estate professional in Los Angeles, I am often asked by young entrepreneurs how I got my start. Starting my own company was a journey, but now I have years of experience working in the California market, with over $500 million in real estate transactions under my belt. I hope sharing my experience of why I started Taylor Equities, and what it has been like running my own family business, can inspire other young professionals entering the market.

My journey to starting Taylor Equities began just out of college. After graduating from the University of California Santa Barbara, I decided to move back to Los Angeles. At the time, I didn’t have any money, and I wasn’t sure what I wanted to do. I began considering industries in which I could get started without any capital. A member of my family who I looked up to suggested real estate may be a good place for me to start. Hoping to establish myself, I set out to find my first job as a real estate broker. 

On my search to becomea broker, I knew it was important for me not only to find a job, but to find a mentor who I could align myself with. After considering my options, I was lucky to receive offers from several different big companies. In one of these meetings, I met David at Daum. I knew immediately that he would have a huge influence on my career. It was clear that he was a professional with much to teach me -- but also that he cared about me as a person. I started working with him in industrial real estate, and we ultimately ended buying property together and becoming partners. Having a mentor to guide me in my development as an entrepreneur was an essential part of my early career. We remain friends to this day.

I entered the industry as a competitive and eager young broker. In addition to my mentorship, my drive and passion helped me excel early in my career. At only 24 years old, I purchased my first real estate property. In just a few days, I was able to flipit, sell it, and make a large profit. The fact that I was able to pull this off, with very little industry experience, was a miracle. It was in honor of this first deal that I named my company Ness Holdings. “Ness” means “miracle” in Hebrew. That initial flip was the miracle that gave me the profit to start my first company.

In 2008, I was proud to establish Ness Holdings Inc., a private equity real estate investment fund. After spending some years as a broker, I decided to transition to the principle side of the business. I was able to raise a fund, and after I sold out, I started buying on my own.

As I was working in the industry and beginning to grow my family, I learned that I was navigating two worlds. Both parts of my life require extensive care, time, and energy, and never wanted to sacrifice one for the other. I strove to be present with my family when I was at home, and present in my work when I was at the office. Reaching the goal of starting my own family office helped me achieve balance between a successful career and a family life.

Taylor Equities, my family-run business, was established in 2013. We acquire value-add multi-family properties. To this day, I still personally manage the portfolio, and I am responsible for all major operational and investment activity. While I am proud of many of my accomplishments, reaching that personal goal and starting Taylor Equities will always be one of my greatest achievements. -Steven Taylor

Steven Taylor of Taylor Equities on Why it’s Important to Remain Calm in Business When Others Are Panicking

Steven Taylor of Taylor Equities - Calm during Panic

Article original appeared on https://steventaylorla.kinja.com/taylor-equities-founder-steven-taylor-on-why-it-s-imp-1842967928?rev=1587414398011 

In the era of COVID-19, many people are panicking. Nationwide, prevention measures such as shutdowns and quarantines have Americans living with the unknown. When faced with the unfamiliar, the common first reaction is to panic. As a business owner, it is important to remain calm while keeping your employees safe. While panic is a natural reaction to a crisis, panicking won’t save your business. To get through this dark time, we must remain calm and work together.

Why it’s important to remain calm in business when others are panicking:

Panic affects your ability to process new information

When in a state of panic, a person is set into “fight or flight” mode. In this state, our brains fight to process the best way to survive, which can affect our ability to process new information. Our ability to properly evaluate any news that we see, read, or hear can be disrupted. It is essential during this time that you keep a clear head in order to make proper decisions for your family and your business. It can feel difficult not to panic, but it is necessary to stay calm to keep your employees safe.

Panic affects your ability to develop a survival strategy

If your industry is still running during the pandemic, panic can also affect your ability to make every day business decisions. While many of us are working from home now, we still must continue with our companies. As you move forward, your best bet is to address new information in a calm manner and make one decision at a time.

Often left out of the commonly known “fight or flight” scenario is “freeze.” In the wild, panic can also cause animals to freeze up and not move at all. In business, freezing and making no decision can often be worse than making a poor decision. For this reason, panic mode is the last place you want to be in a bad situation. If you stay calm, you won’t freeze, and you can begin to make decisions to keep you and your company safe and running.

As a business owner, it is also your responsibility to keep your employees calm during a crisis. Panic is contagious, so it is important to be united as a group. Here are a few ways you can keep your employees calm, whether you are still in a workplace or working separately from home. Continue Reading 

Steven Taylor, Taylor Equities - Why Invest in Apartments

Property - Steven Taylor Taylor Equities

Article originally appeared at https://medium.com/@steventaylorlandlord/why-invest-in-apartments-steven-taylor-of-taylor-equities-fe093fa457cc

As an investor, I receive a lot of questions from those who are interested in entering the real-estate industry. One of the most common questions I am asked is: “Why invest in apartments?” Multi-family properties are among my favorite investments, because there are many benefits to investing in apartments. Apartment buildings create consistent cash flow, are always in demand, and have major management advantages. Today, I will break down a few of the reasons I encourage investing in multi-family housing.

Multi-family housing will always be in demand.

While the “American dream” may be to own a home, the reality is that many individuals will never be able to afford their own single-family unit. Whether your tenants are young graduates just entering the workforce, or families who can’t purchase a stand-alone home, there will always be a market of people looking to rent an apartment. As you look at areas to purchase an investment property, consider the demand. Are there new businesses nearby with employees looking for housing? A popular school system? A trendy neighborhood on the rise? A major advantage of investing in apartments is high demand, so be sure to tap into the best area before buying in.

Multiple units under one roof are easier to manage than individual properties.

If you are only investing in single-family homes, you may end up with several properties in different parts of the city, or the country, to look after. With an apartment building, you can own and rent many units all in one convenient location. Keeping all of your units in one building allows for easier management. As a landlord, you can hire a single property manager to manage the entirety of your apartment building, rather than needing to be in several places at once. Having assistance on site is the key to a smooth multi-family building operation. Once you have a great property management company in place, running an apartment building can be smooth sailing.

Continue Reading...

Steven Taylor of Taylor Equities -How to Find the Value of a Multi-Unit Real Estate Property

Steven Taylor of Taylor Equities -How to Find the Value of a Multi-Unit Real Estate Property

Steven Taylor Taylor Equities on the Importance of “Family Time” in a Well-Rounded Life

Steven Taylor Taylor Equities

In the last few weeks, my work at Taylor Equities like many American’s typical daily schedule has shifted dramatically. Many parents have been thrust into homeschooling, and some are out of work. With these changes comes a sudden increase in time at home spent with family. These times can be incredibly stressful. But, during quarantine you may also find new and creative ways to enjoy spending time with your kids. Hopefully, some of these habits will carry on when things return to normal. Quality family time comes with many benefits and is an important part of a well-rounded life.

If you are isolated with family, you may be tempted to create detailed quarantine schedules or tackle work projects. While there is always space for productivity, this is time to take advantage of the opportunity for quality family bonding. Here are a few points that support the importance of family time in a well-rounded life:

1. Quality time with parents builds children’s self-esteem

Kids who regularly participate in activities with their parents are able to build their sense of self-worth. It’s as simple as this: by demonstrating that you value spending time with your children, they in turn feel valuable. Quality family time doesn’t need to involve elaborate activities or expensive outings. A walk through the neighborhood, collaborating on a puzzle, watching a movie, or baking together can all be quality activities. It’s not about what you are doing. It’s about being present with each other and listening.

2. Common interests strengthen family bonds

Parents and children who share interests such as hobbies, sports, cuisine, or even movies, can develop strong family bonds. Of course, it isn’t realistic that you will all love the same things. But, finding some common ground with different members of your family can help build emotional ties. By sharing a common experience and developing memories, families grow closer. Take this down time as an opportunity to find new ways to relate to your family members and build common ground.

3. Prioritizing family sets a positive example

Spending quality family time is a way to create fond memories and solidify traditions. Children who have positive experiences with family and have happy memories are more inclined to provide a nurturing environment when they have their own children. Finding the time to routinely make space for family is one of the best examples you can show your kids. Showing your kids love and attention only inspires them to show love to others in return.

4. Time together allows parents to reconnect

Connection is an important part of a well-rounded life. For many career-driven adults, it is easy to lose sight of what is important. It’s possible that while you’ve been focused on providing for your family, you have been missing out on essential shared moments.

Spending quality time with your family allows you to reconnect. It is easier to get kids to open up about their lives while they are doing a fun activity. Take the opportunity to ask them more creative questions than “How was your day?” If you open up to your family, you may find that they are more willing to share their emotions than you thought. Family time has many benefits, but the joy of genuinely connecting with your kids is hard to beat. - Steven Taylor Taylor Equities