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All Forum Posts by: Chris Jones

Chris Jones has started 19 posts and replied 40 times.

Post: Have a Monte Lee-Wen CRE Home Study Course

Chris JonesPosted
  • Hackensack, NJ
  • Posts 49
  • Votes 1

Well when I bought the course I paid $1200, I had lots of cash and a strong desire to break into CRE Investing (but things change)

Anyhow, I would like to get at least $300 for but I did just post it on eBay for a starting bid of $150.

This course is amazing and very few people have this course because of the initial price, I would keep the course if I was still interest CRE.

Post: Have a Monte Lee-Wen CRE Home Study Course

Chris JonesPosted
  • Hackensack, NJ
  • Posts 49
  • Votes 1

Hi all,

Currently have a Monte Lee Wen Commercial Real Estate Investment Home Study Course which i'm looking to get rid of for the right price.

Anyhow, anyone interested or can give me some ideas on where to advertise this course.

This is what is included:

1- Four Ring Binders which contains all twelve trainings

Building your foundation

Market Cycles and Picking your Niche

Building your Investing Team

Lead Generation/Entities/Building your private money network

Property Analysis and Making Offers

Negotiations & Contracts

How to preform your Due Diligence

Commercial Financing and Enrolling Private Money

Closing Your Purchase

The 90 Day Transition Plan

Asset Management

Maximize the Profits at the Sale

2- Audio and Data Disc Set which contains the following:

Twenty One Audio CD's which farther breaks down all twelve trainings.

One Apartment Analysis Software CD

I will provide you with actual Samples of all the various different types of contracts you'll come across in this business (Having your Attorney draft just one of these contracts from beginning to end will cost you the price of this course easy).

I will also provide you with the actual scripts to use to build your investment team in each market.

The purpose of this course is to provide you with the skills, tools, strategies and techniques used daily by successful professional investors in commercial investment property. Increase your financial intelligence and literacy and you will increase your ability to achieve success.

Post: what's your cash-on-cash return

Chris JonesPosted
  • Hackensack, NJ
  • Posts 49
  • Votes 1

Will thanks for clearing that up, that sounds about right, because when you and cornell said between 25% - 50% or more something just didn't sound right, especially after i had spoke with that gentlemen and he told me finding deals like that is extremely rare.

so it was just a mix up of the words on eveyones part, but anyway like i told cornell some of these terms people in the industry actually use them incorrectly which confuses people like myself which are so analytical and about the facts.

and to answer cornells question (which i'm not all that knowledgeable about CRE investing), the reason why i think the CoC return is important is because it gives you a basic time frame without counting on to much forced appreciation of how long it'll take to get your money back (which you already stated), so it's a good ratio to know and communicate to your investors who only want to know three things, 1- the amount of interest they'll be earning on their money, 2- is there money safe, 3- "how fast will they get all of there money back", it lets them know that this is long term investment so don't expect all your money back to soon.

now this is why i think its important (this could be wrong or right, but this is what i think), now there could be some other reasons of why the CoC return is important that i may not be aware of at the moment.

Post: what's your cash-on-cash return

Chris JonesPosted
  • Hackensack, NJ
  • Posts 49
  • Votes 1

Cornell, once again thanks for sharing your knowledge and for trying to clear this topic up for me, i really appreciate that.

cornell your right about one thing, A and B class properties carry a lot less risk then say C and D class properties, so investors or investment companies will expect a lower return when targeting these upper class properties (i know this). BUT this gentlemen i'm talking about his company has been investing in C class properties across the nation and he said finding properties throwing off a 20% CoC return or higher for the first year before even forcing appreciation is really rare.

this gentlemen's company actually doesn't place any of their money in the deal, they pool funds together from other investors or funding companies, so Cornell you would probable say why would he care about the CoC return or ROE or ROI when having nothing personally invested, I say because his investors who invested money care, so his company has to make sure he can provide them the returns he promised.

i think Susan L gets what i'm talking about as well, her figures were right in the ballpark with what this gentlemen said (read her comment), i forgot to let her know this, sorry Susan

Cornell your right about another thing, there is a difference between ROI and ROE, so if i had caused you any confusion here i'm sorry, a lot of people actually use these two terms interchangeablely, Cornell there was another thing you were right about, you can change the figures like downpayment, interest rate, the AM and etc, but when your quickly analyzing deals you have to make certain safe assumptions about your financing to come up with these ratios, and the assumptions i'm using is listed above in my previous post

and if i come across as trying to be a know it all, my sorry because i'm really not, i'm just a newbie who is determine to learn this business and the calculations from the inside and out.

cornell, me and this gentlemen aren't saying you can't get huge returns like what you stated you look for, its just that those type of returns come later on or towards the end of the investment, but not at the beginning of the investment

Post: what's your cash-on-cash return

Chris JonesPosted
  • Hackensack, NJ
  • Posts 49
  • Votes 1

Jon, first off thanks for commenting and sharing your knowledge.

jon i just wanted say, when i talk about cash-on-cash return i'm definitely talking about a CoC return with your financing in place (so if i was unclear about this i'm sorry, i just figured everyone would know what i was talking about)

jon you are right there are some people that calculate their ROI only from the standpoint of how much money they themselves came out of pocket and don't include financing into the mix, actually the people who do this can make their return look infinite if they actually put NO money into the deal at all.

but i say who is the joke on, when you can make yourself look like your getting this huge ROI percentage but are not making no money. so jon when i say what's your CoC return i'm talking about with your financing included.

like with a 30% down (its hard nowadays) and a 7% interest rate over 30yrs

this is what me and this gentlemen was talking about, that's why he said i would be crazy looking for 20% CoC return properties with the factors i just stated above. he also said that if their were a property like that out there most investors wouldn't even see it because it'll probably go straight to a company like his in about two seconds.

Post: what's your cash-on-cash return

Chris JonesPosted
  • Hackensack, NJ
  • Posts 49
  • Votes 1

Hello everyone and thanks for all of your comments, i really appreciate you sharing your knowledge.

Now, i don't really know how successful all of you are in this business, or even if CRE investing is your main focus, but i can tell you that last week i had the privilege to speak with a gentlemen who is part of a very large CRE investment company holding hundreds of millions in assets.

while i had his attention and he was so willing to share info with me i had to asked him multiple questions, now when i asked him about this cash-on-cash return thing(which is a preference we all now), he straight out told me i was crazy to believe that i was just gonna walk into a deal and get 20% return on my money that same year like that, he straight out told me i'll be better off looking for a needle in a haystack.

he told me anybody out there waiting on deals like that will be waiting for a very long time, and must be looking at investing as a hobby and not a business, you make your money mainly from the reposition (forced appreciation), once i a while you'll get a great purchase but nothing to the point were it's 20% CoC return straight up before you do anything to the property

Post: what's your cash-on-cash return

Chris JonesPosted
  • Hackensack, NJ
  • Posts 49
  • Votes 1

Hello everyone, i just wanted to ask some of you experienced CRE investors a question.

1. what kinda cash-on-cash returns do you look for?
2. are you finding it hard to find deals with your cash-on-cash
requirements?
3. is there ever a time when you'll go through with a deal, even
when you can't get the cash-on-cash returns you want? if so,
please explain

the reason for my questions is because i'm finding it almost impossible for find deals offering the kinda cash-on-cash returns i'm seeking (20%).

So i just wanted to know is this something i'm doing correctly and i just have to keep searching for that right deal, or is this percentage completely out line (to high) and i need to come down a little to reasonably figure.

Post: Question about looking at Cap Rates

Chris JonesPosted
  • Hackensack, NJ
  • Posts 49
  • Votes 1

Chris thanks for the info, chris i also found out that my thoughts were correct.

there is no set value, the value of the property is based on what makes sense for you to achieve your investment goals (that's it).

some will say to not rely on the cap rate for your purchase decision (which i agree), but to use it to compare to other similar properties that have sold in the area, which is actually not reliable because 1. there will be less comparables, 2. how properties were purchased vary from deal to deal, 3. the inner workings of most transactions are confidential.

so the best way to analyze a deal (while using cap rates) is to add your financing terms into the picture (principal + interest and etc) and calculate what the deal is really worth to you.

see the normal NOI/Asking price = cap rate is based on if someone were to pay all cash, this is the return they could expect first year, but paying all cash for a property doesn't happen all that often (bank funding will be use for a large portion of that cost).

so i found the best way to use this formula and analyze my deals is by look at all factors but also including my financing terms with my desired return objectives into the picture to get a proper view and value to me.

Post: Question about looking at Cap Rates

Chris JonesPosted
  • Hackensack, NJ
  • Posts 49
  • Votes 1

I meant to say investors are being taught how to analyze properties incorrectly.

Post: Question about looking at Cap Rates

Chris JonesPosted
  • Hackensack, NJ
  • Posts 49
  • Votes 1

Hello Everyone, there's this thing with cap rates (well checking for a properties true value) that I just can't seem to wrap my brain around and wanted to hear what some of you other investors thought about it.

OK. everyone knows that the properties value is based off its income (NOI) which I got that, and everyone knows you arrive at the cap rate by dividing NOI by the Asking Price which you get the cap rate at which the seller is selling his/her property at.

so my question is, isn't it a flawed pratice to analyze all deals off a 10% return/cap calculation? because basically to me there is no set true value even when both you and seller agree on the income the property produces.

Example....a property generating 100K and a asking price of 1.4M equals a cap rate of 7. But if I were to come along and analyze this property off of a 10% return/cap this property would look like its 400K overpriced (so whose right).

I know behind all this its based on the risk factor (lower return less risk, higher return more risk), so with that being said what particular risk factors that make you investors feel comfortable analyzing the property/deals off of a 10% return/cap instead of what the seller is asking for?

the point behind this whole thread is that I feel alot of investors are missing out on some great deals because they're being taught how to analyze them correctly, so they can't get a true sense of a deal or trash.