Real Estate Investing Made Simple

Investing in real estate doesn’t have to be complicated.

At Republic Investment Group, you don’t just get another wealth manager to handle your assets. You get empowered to confidently deploy proven wealth maximization strategies.

How To Invest In A Property With Republic Investment Group

Step 1: Determine Your Funding Source

Use your:

  • Self-directed IRA
  • Private savings account
  • Cash, in case your loan is not accepted
  • Loan, such as a hard money loan
  • Or 1031 exchange

Step 2: Find The Right Investment

Choose from:

  • Distressed property: Invest in single-family or multifamily homes, land, condominiums, townhomes, or commercial properties.
  • Private loan: Create promissory notes for other investors.
  • Rental: Purchase existing turnkey properties or create a new rental.
  • Portfolio: Manage all your assets in one location.
  • Crowd-funding/REIT: Crowdfund alongside other investors.

Step 3: Purchase The Property

To make the acquisition process easier, many of our investors:

  • Work with a mobile notary: Use electronic signatures where possible, and have a mobile notary finalize your legal documents.
  • Create a Power of Attorney (POA): Depending on your schedule, it may be more convenient to designate someone you trust to make transactions and sign documents for you.
  • Determine Agreements: Exercise or designate complete authority and direction on what can and cannot be done.

Step 4: Grow Your Wealth

You can choose to:

  • Sit Back: Monitor your online property portal.
  • Change: If something doesn’t feel right or if an investment isn’t the right fit for you, you can meet with your project manager to make the necessary changes.
  • Repeat: You can opt to find new or similar investments.


The real estate industry uses terms that new investors may not be familiar with. Here’s a glossary with a few of the terms you should know.

Gross Rent Multiplier (GRM)

The Gross Rent Multiplier (GRM) is a valuation approach used in the commercial real estate industry. It calculates the approximate value of income that a property produces based on its gross rental income. Simply put, it is an estimate of how much money your property will make and how long you need to wait until your property pays for itself.

Gross rental income includes income derived not just from rent, but also the money you earn from the property in other ways. Some examples are parking fees and vending machine profits. Gross rental income does not include property taxes, utilities, insurance, and other expenses.

To calculate GRM, simply divide the property’s annual gross rental income by its purchase price. So if the property costs $150,000 and its gross rental income for one year is $40,000, the equation will look like this:

$150,000 / $16,800 = 8.9 GRM

Like golf scores, the lower the GRM, the better. Your findings will come in handy when you’re comparing potential investment properties.

Net Operating Income (NOI)

While a price-to-rent ratio is simple and easy to calculate, it does not take into account your operating expenses. For example, some markets have much higher property taxes than others. In situations like these, you’ll need to use more comprehensive calculations to get a closer estimate of how much money will go into your pocket.

Your Net Operating Income (NOI) is your total gross scheduled rent minus all your expenses—property taxes, insurance, HOA fees if any, property management fees, as well as "vacancy" and "maintenance" estimates.

To calculate NOI, use this equation:

Gross Scheduled Rent - Operating Expenses - Maintenance and Vacancy Estimates = NOI

We’ll use the same example we used in the previous section, a $150,000 property that earns $1,400 rent per month and includes some expenses.

Capitalization Rate (Cap Rate)

A capitalization rate or cap rate is simply your annual net operating income divided by your purchase price. To get your property’s cap rate, perform the following equation:

Cap Rate = Annual NOI / Purchase Price

So, sticking with our example, you would multiply your $905 monthly NOI by 12 to get your annual NOI of $10,860.

$10,860 / $150,000 = Cap Rate 7.24%

Note: the higher the cap rate, the better.

© Republic Investment Group

This website (this “Website”) is owned and operated by Republic Investment Group LLC . All content available on this Website is general in nature, not directed or tailored to any particular person, and is for informational purposes only. Neither the Website nor any of its content is offered as investment, legal, or tax advice and should not be deemed as investment, legal, or tax advice or a recommendation to purchase or sell any specific security. The information contained herein reflects the opinions and projections of Republic Investment Group as of the date hereof, which are subject to change without notice at any time. All economic and performance data is historical and must be considered in conjunction with applicable disclosures. Past performance is not a guarantee of future results. Republic Investment Group does not represent that any opinion or projection will be realized. Neither Republic Investment Group nor any of its advisers, officers, directors, or affiliates represents that the information presented on this Website is accurate, current, or complete. Individuals are urged to consult with their own professional advisers before making any investment decision. An investment in real estate involves a high degree of risk and should be considered only by highly sophisticated persons who can bear the economic risk of loss and illiquidity.