The Multifamily Wealth Podcast

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


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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.


Are you looking to invest in real estate, but don't want to deal with the hassle of finding great deals, signing on debt, and managing tenants? Aligned Real Estate Partners provides investment opportunities to passive investors looking for the returns, stability, and tax benefits multifamily real estate offers, but without the work - join our investor club to be notified of future investment opportunities.


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Learn more about Aligned Real Estate Partners



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The Multifamily Wealth PodcastBy Axel Ragnarsson

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