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Manufacturing Equity with The Rule of 150

by Andrew C. MacDonald on June 20, 2011

Nothing to DoThis weekend I attended a Multi-Family Investing Bootcamp organized by The Real Estate Investment Network (REIN) and started to learn about how to acquire, manage and exit multi-residential properties. One of the key takeaways for me was the rule of 150 which I will explain here. There are some differences in the way single family and small residential properties are valued when compared against multi-family properties and this creates a powerful opportunity to create equity by increasing a building’s value.

Continue readingManufacturing Equity with The Rule of 150 on my blog at BiggerPockets to learn what the rule of 150 is, why it works, and the math behind it. I even share a couple examples of how it can be used to manufacture equity.

Creative Commons License photo credit: cogdogblog

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{ 2 comments… read them below or add one }

Joshua Dorkin June 20, 2011 at 3:42 pm

Fantastic post, Andrew! I think you might help quite a few investors to catch the commercial multi-family bug with this one.

Andrew C. MacDonald June 21, 2011 at 9:12 pm

Hi Josh, I’ve still got to develop Bigger Pockets before I get into it myself but it makes sense in so many ways.

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