what to look for when analyzing operating expenses on T12
Tuesday, February 15
Some buyers are making deals work in today’s market because they are buying properties not reflecting the NOI accurately. If you buy C vintage properties, be careful if operating expenses are less than 45% NOI. Realistically speaking, properties built between 1960-2002 should be running at 50-55%...
how to use rent comps appropriately
Sunday, February 06
Getting rent comps is one of the most crucial and time-consuming parts of underwriting. The number one rule is to not believe the broker’s rent comp at face value. Remember, “trust but verify” everything. Remember, the broker’s main job is to sell you something. So, they will get you the highest ...
underwriting vacancy amount
Saturday, February 05
One of the biggest concerns when underwriting is when increasing rents by over 100 dollars and doing value projects, how much should vacancy increase in year 1. I talked to more experienced investors. Experienced investors said vacancy should not drop by more than 2-4% because you should priorit...
HOW YOUR VALUES AFFECT NETWORKING AND TEAM BUILDING
Monday, January 31
I am in charge of acquisition, investor relations, and coordinating with property managers (asset managers). I learned that in future deals, especially as we scale to more and bigger deals, I need internal partners (on top of external partners) to focus and run each aspect of the business. Ther...
the key to success is patience
Wednesday, December 22
I started studying Real Estate investing in 2018. In 2019, I started buying properties in Indianapolis, Indiana. But before I bought my first property, I was in “Analysis Paralysis”. I was just over-analyzing everything and not buying any deals at all. This is when an investor gave me a piece of ...
My Property Manager Fired Me!
Saturday, December 18
Yeah! My Property Manager fired me yesterday! Now let me explain what happened. We had flooding in one of my properties a few days ago. It inflicted damage to the gas heater and thus it needed replacement. Now my property manager came back with a quote and well – it was ridiculous! He quoted $4,0...