In this episode of the Multifamily Wealth Podcast, we discuss why buying multifamily real estate based on actual numbers is often not realistic. I explain that while many investors claim to buy on actuals, it rarely happens in practice. I also shared some mathematical examples to support this argument and highlighted a hypothetical scenario of a vacant 20-unit multifamily property with zero income.

In this episode we discuss:

The meaning of “buying on actuals” in real estate world
Why buying multifamily real estate based on actual numbers, such as income and expenses, is not a common practice
Why buying on actuals is unlikely to result in successful deals
Why you need to focus on “value-add” multifamily deals
The importance of considering the future potential of multifamily properties when determining their purchase price

Struggling to find good multifamily deals? Looking to close deals with less of your own money? Want to operate like the pros and maximize the cash flow of your assets? Join The Multifamily Wealth Community, where we help multifamily investors start, build, and scale their businesses… specifically, those looking to grow from 1-10 units to 250+ units.

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#190: Why The Term "Buying on Actuals" Doesn't Make Any Sense... and Doesn't Happen