All Forum Posts by: Chris Seveney

Hi There, I am calculating the cash on cash return of my house. Not sure whether the calculation is correct. Can someone give me some advice in the below scenario?

I bought a house 3 years ago with $420K and after 3 years the value on Redfin is about $460K so the appreciation is about $40K. But my down payment 3 years ago is only 10% of the total price $42K. I did not rent it in the 3 years. So can I calculate my cash on cash return like below $40K(appreciation)/($42k(Down payment)+(2.1K(Monthly payment for Mortgage+HOA)*36)) = 40/(42+75.6)= 34% so the annual cash on cash return is about 1.34 to find the cubit root. It is about an 11% yearly return on my initial investment. It does not include the rent income, just the appreciation, it is about 11%.

If I rent it out and the rent monthly payment let's say covers the mortgage and HOA, the cash on cash return will be $40K(appreciation)/($ 42K (Down payment) = 95% and it will be 1.95 to find the cubit root and it is about 25% yearly return on my initial investment.

Is my calculation correct? Any comments or ideas?

Thank you so much!

Quote from @Vicki Rolufs:

Same topic...

Any info on Paul Osteen with Diamond Lending

https://www.diamondlendingllc.net/

check their license number with the state.. thats first thing make sure they are real they post it on the bottom of their website.. then like all of these lenders just dont send in commitment fee's or other junk fee before you close.

Hey Mike I wanted to know if I wanted to seel you my home with seller financing and I  wanted to transfer title to you the buyer. unlike contract for deed WHAT is the instrument they use in Wisconsin. In Ohio it’s called deed and note. 

I need advice on a serious situation involving a property I’m about to buy. A mass shooting occurred tonight on the street next to the street where the property is located, leaving nine people shot and one dead. Police described the event as "shocking" and "unheard of." so far. I’ve already put down a $2,000 earnest deposit and paid for the inspection and appraisal.

This event is unprecedented in the area, as the area is typically low in violence and considered very safe. The neighborhood has been flourishing, making this incident highly unusual.

What initially drew me to the property was the potential for high rent and strong cash flow. This would be my first real estate investment, making the decision even more critical.

I understand that backing out would mean losing the $2,000 earnest deposit. Given the circumstances, I’m unsure whether to proceed or back out of the contract. What factors should I consider when making this decision? Are there other legal or financial consequences I should be aware of?

Any guidance from experienced investors, real estate professionals, or anyone who has faced a similar situation would be greatly appreciated.

HI, almost 11 months ago I purchased 3 duplexes and I borrowed the funds from my personal residence which I took out a equity agreement for the down payment on the investment property, great idea at the time because I have 10 years to pay it off and theres no payment requirement, but , I learned more about the consequence that it takes a large chunk of my equity the longer I take to pay it back, so my goal was to refi cash out the investment property to pay it back but I don't think theres enough equity yet to pull the full $106k needed, I only borrowed $88k but with the equity percentage for one year i'm paying about $18k in equity on top of the amount I borrowed if I pay it off in year one, so I need this paid off ASAP before it increases more. If I refi cash out I can probably only get about $50k out of the investment property, any ideas on another way to get the amount I need that I may not be thinking of? I was thinking a bridge loan might be an option , and then refi it later and pay back the bridge loan,  but I'm waiting for lenders to reach back out and run some numbers. Any other options you guys may suggest if you've been in a similar situation I'd love to hear it ? 

Quote from @James Hamling:

Quote from @Bruce Woodruff:

Quote from @Jonathan Greene:

Quote from @Bruce Woodruff:

Quote from @Scott Trench:

I think that the team and moderators will all be aligned with this philosophically. 

But, I think in practice, "reverse trolling" remains ill-defined and a blurred line will rapidly begin developing. 

Any ideas on how to crystallize this? 

Any suggestions on what to update/populate in our "rules" section to help us make this clearer? 

I really think that this is not necessary (with all due respect @Jonathan Greene)

The forum is great and works just fine IMO. The trolls are obvious to anyone with a little sense. The 'good guys' on here can help the newbies by pointing out the very obvious trolls......

Just my $0.02

I think if we have active moderators and active community to help put them back in the bag it will be fine as well. It's not a giant burden right now, but with AI and duplication posts, it's becoming much easier to spam overall.

I still find the biggest 'issue' on the Forum is what we've already talked about - the failure of most new members to use the search feature before asking the same question that has been asked over and over again. How that gets fixed I have no idea, I'm sure it is a problem on every forum out there.....but it bogs down the Forum and wastes people's time more than anything else IMHO...

It's people Bruce. 

Almost daily I get a phone call of: "Hey, I am calling on your property listed for rent (that they are obviously reading because that's how they got my #), I was wondering, is it available?". 

It's been years on end I have been doing this and still, to this day every time I get asked this question, I so desperately want to say "Nope! Not available. I just like to list places and keep them posted so I get a chance to talk to nice new people, like you. So, how's it going?" Lol. 

But I get it, plenty do keep places posted that are no longer available, so I am nice, I answer. But, then when they ask me the rent, the terms, available date...... I tell them it's one quarter inch away from where they looked at my #, READ THE LISTING. No, they don't almost never.     Because it's too much energy to take 2min to read it, instead they just read for a #, and call me to ask everything they just refused to read in looking for my #........ 

I assure that's what's happening here, it's a generational thing. 

I miss the good ole days, when you could tell an idiot there being an idiot.... 

This is why I haven't answered my phone once, except from family, in the past eight years. They text me a question about the listing and I send them back the listing URL. I am not doing other people's reading for them. I have better things to do with my time (like never being on the phone unless it's a scheduled call).

I would like to know if Data analysis in needed in Real Estate industry. If so, I would like to apply my expertise in Data analysis as part of my side hustle project.

Please suggest.

I’m looking to connect with private money lenders or investors who lend their own funds for real estate deals. Whether it’s for fix-and-flips, rentals, or other projects, I’d love to learn more about who you’ve worked with and what your experience has been like.

Do you have any solid connections or recommendations for private lenders who use their own capital? Also, if you’re a private lender yourself, feel free to chime in—I’d love to hear from you!

Let’s share some insights and build stronger networks together. Drop your thoughts, recommendations, or experiences in the comments.

Looking forward to hearing from you all!

I have an apartment complex under contract in the greater New Orleans area. It is the best deal that I have found in 6 months of searching. 12 units total. 9.2% cap rate.

I just need help with financing this deal. I am 100% financing. I am taking a down payment loan out from my parents at 5% interest, 10 years amortization. They will not do a longer term.

I need help finding a bank or national commercial lender that could help provide me a commercial loan with a 25-30 year amortization. The local offer from several banks in the area is 7.5% interest rate at 20 year amortization. This number projects a -$15k annual cash flow due to having to pay back the down payment loan at the same time, which is hard to incur.

Any advice or any recommendations on who I can work with to provide a 25-30 year amortization loan to help with cash flow?

Hi guys,

my name is Jaša and i have recently read a book about banking that opened not only my eyes regarding financing but my whole brain...

So basically the idea is to become private lender (or trust deed investor). You borrow money for lower interest rate (say 7%) and then lend it out to someone with higher interest rate (12%) = arbitraging 5%

This is absolutely genious! 

Has someone experience with this?

I have found broker who will relay me borrowers' information, so I only need to find someone to borrow for low interest rate from.
Any help will be much appreciated!

Thank you very much

Jaša