What is a Major Metropolitan Statistical Area?

 

Major Metropolitan Statistical Area
Image: investopedia.com

Businessman and entrepreneur Frank Roessler founded Ashcroft Capital, a multifamily investment firm, formed in 2015 (https://www.ashcroftcapital.com/about/frank-roessler/). Under the leadership of Frank Roessler, the firm’s investment focus is repositioning properties in major metropolitan statistical areas by completing various levels of renovations.

The United States Government uses the term metropolitan statistical area (MSA) to designate regions that have a relatively high population density and, generally speaking, consist of a city, its suburbs, and the surrounding communities that are closely linked to the city through commuting, social activities, or commerce in the downtown center. MSAs are, categorically, statistical definitions and are not administrated areas.

Just under 400 MSAs have been defined in the United States for the purpose of gathering statistical and population census data. For example, government officials, as well as businesses, use MSA statistical data to analyze the labor market and to review per capita income, unemployment rates, and spending patterns. The New York-Newark-Jersey City MSA, which spans three states, is the country’s most populous.

Advertisement

The Growth Income Multiplier in Real Estate

 

Growth Income Multiplier
Image: investopedia.com

Frank Roessler is a California resident with nearly a decade of experience in the real estate and investment industry. Holder of an MBA with an emphasis in real estate finance, Frank Roessler currently serves as the managing principal and founder of Ashcroft Capital.

Ashcroft Capital is a multifamily investment firm that concentrates its investments in large metropolitan areas. One of the firm’s primary goals is to identify properties with value-added potential and, after acquisition, to create this increase in value. In real estate, a common technique used to measure the value of an investment property is the gross income multiplier.

The gross income multiplier, commonly used for commercial real estate such as apartment complexes, provides an approximation of the value of a property. The multiplier is determined by dividing a property’s price by the annual gross rental income it generates. A benefit of the gross income multiplier is that it allows a quick determination of whether an asking price for a property is high, low, or close to the market. However, other valuation methods are also helpful when factors such as taxes and maintenance need to be accounted for.

https://www.ashcroftcapital.com/about/frank-roessler/