1. INFINITY INVESTMENTS REAL ESTATE INVESTING SEMINAR1
INFINITY INVESTMENTS REAL ESTATE INVESTING SEMINAR

2. Introduction Steve Peterson Broker/Owner of Infinity Investments2
Introduction
Steve Peterson
Broker/Owner of Infinity Investments
Infinity Investments was established in November 2009 in Oakland, Ca.
Investment/Brokerage Firm
Specializing in the Acquisition, Sales and Management of Apartment Buildings 2

3. Real Estate Investment Product Type
Single Family Residential
Condos & Townhouses
2-4 Unit Residential Income
5+ Unit Multi-Family Commercial
Retail
Office
Industrial
Hospitality

4. Why Buy Multi-Family Property?
Stable cash flow during the holding period
High occupancy rates historically & currently
Financing is available at attractive rates
Economies of scale that SFR’s don’t have
Excellent generator and preserver of wealth
Prices in the current market have dropped more that 50% from their peak while rents are near where they were at the peak and rising

5. What Do We Look At Cash Flow NOI Details Price & Cap rate Rent Roll
Cash on Cash return 5

6. Income Rents Other Income = Effective Gross Income
Gross Scheduled Rents
- Vacancy
- Loss to Lease / Concessions
Other Income
+ Laundry
+ Vending
= Effective Gross Income 6

7. Operating Expenses T axes (Property and Personal Property) I nsurance
M anagement (On and Off-Site)
M aintenance (Preventative and Emergency)
U tilities (Gas/Electric/Water/Sewer)
R epairs (Including Make Ready Work)
R eserves (Sometimes Required by Lender) 7

8. Net Operating Income NOI = Income – Operating Expenses
Net Income after accounting for all income sources minus all non-debt service expenses.
What’s left after you collect rents and pay your bills but before you pay your mortgage. 8

9. CAPITALIZATION RATE
What Is It? The rate of return generated by a real estate investment property based on the annual Net Operating Income that a property generates.
Net Operating Income
CAP Rate =
Purchase Price
Basically it represents the percentage return you would get from a building if you paid cash and didn’t have a mortgage payment 9

10. Cap Rate Example $100,000 NOI $1,000,000 Price 10% CAP Rate =
The higher the better when you buy
The lower the better when you sell
$100,000 NOI
_________________________
$1,000,000 Price

11. Other Terms
Net Cash flow is simply the cash remaining after all expenses and the mortgage are paid.
Cash on Cash Return = Net Cash flow divided by the Total Cash invested (down payment plus closing, etc.)
Internal Rate of Return: The total return on the initial investment on an annual basis once the property is sold.
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12. Acquisition Strategies
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Acquisition Strategies
I. Buy Individually
Reo/Short Sale/Distressed Property
Note Acquisition (Loan to Own Strategy
Wholesaling (Flipping the contract)
Buy & Hold for Cash Flow
Buy & Flip
Buy, Hold & Exchange
Contract for Deed, Lease Option, Seller Financing
Responsible for financing, down payment, liability
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13. Acquisition Strategies
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Acquisition Strategies
II. Co-Invest with Partners and Sponsers
Spread the risk and the amount of capital needed for down payment.
Utilize the Strength of each partner.
Usually one person obtains financing.
Increases chances for success but requires team work and the ability to make group decisions.
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