Hello, this is Shuo.
Today let’s talk about equity multiplier. It is more of a straightforward one.
It equals the total net profit from cash flow plus sales proceeds received, divided by the equity invested. So let’s say if $100,000 was invested and $200,000 was received then that is a two times equity multiplier.
Receive daily 1-minute videos to help you learn to be a better investor?
Patrick Grimes is a design engineer and CEO and Founder of Invest on Main Street, LLC. His real estate holdings include general partner ownership of a multifamily and single-family real estate portfolio valued over $146M, including 1,950+ units across the southeastern United States and Texas.
He has been active in real estate investment since 2007, including purchasing land and distressed assets, renovating them, and stabilizing them for long-term cash flow. To scale his real estate portfolio, Patrick moved from single-family to multifamily investing and founded Invest on Main Street, a private equity firm specializing in multifamily value-add projects in emerging markets.