5 Most Important Real Estate Calculations
Tuesday, July 22
1. Cap Rate: Net Operating Income/Total Price of PropertyMostly used for valuing apartment complexes and other commercial buildings. You want to have a cap rate that is at least as good, preferably better, than comparable buildings in the area. I almost always want to be at a 10 cap or higher. Al...
Post at REIClub: Due Diligence: Purchasing Multi-Family Investments
Sunday, June 22
So I published an article on the REI Club blog and thought I would share it. It's a bit excited getting published on a major website. It's titled "Due Diligence: Purchasing Multi-Family Investments." The gist is simple: "When it comes to purchasing multi-family properties, due diligence ...
The Importance of Scoping the Sewer Line
Sunday, June 22
One of the most common missed pieces of due diligence is to scope the sewer line. It only took me a couple of broken sewer lines where we had to dig out the entire line before it became clear to me that this was something that we should be doing. A lot of properties, especially thos...
Off Topic: The Easy Way To Stop Smoking
Sunday, June 01
For any investors out there who are trying to quit smoking, I highly recommend reading Allen Carr's The Easy Way to Stop Smoking. Not only will your health improve, but so will your energy levels and focus (as well as saving money), and that will help with your real estate investing career!...
Why Seconds Come First: 12 Keys to Nonperforming Second Loans
Tuesday, May 27
My colleague Sandor Lau gave another speech, this time at the Papersource Note Symposium in Las Vegas. His talk is titled "Why Seconds Come First: 12 Keys to Nonperforming Second Loans." Anyone interested in getting into notes should take a listen:
Be Wary of Pro Forma's
Monday, May 05
If you've ever seen a pro forma that is worse than the actual 12 month operating history, please let me know, because I'm pretty sure such a thing does not exist. My dad had a saying I thought was pretty poetic. It goes like this, "Buyer's are liars... and seller's are liars." ...