All Forum Posts by: Adrian Fajardo

@Simon Stahl I'm in the same boat as you. I'm shopping around for PM in the Killeen area and I found 2 of the contracts that have these fees. 

@Nathan Gesner Thank you for bringing those questions up. I first asked each PM to send me their Terms of Agreement and prepped my questions. I'll add all of yours to my telephone interview! I find them very helpful! 

@Dysha Hodge hello, I sent you a PM.

@Idan Zur sent you a pm.

@Katie Reborchick do you happen to still be operating in the area? 

@Enrique Gonzalez hello! I will be moving to the area pretty soon and I am also looking into networking. If you don't mind me asking, where in Killeen did you purchase your 4plex?

@Carolyn Busby, do you mind if I ask for your opinion? I'm moving to Killeen in a couple of months and I'm in search of a place to live (which really is a Househack). I'm primarily focused on the Harker Heights area because based on suggestions from friends and family who are familiar with the area. Inventory is kinda small right now and I'm willing to be flexible. Are there any other areas in the Killeen area you would recommend? All I'm looking for is a decent neighborhood. 

@Adrian Stamer now that you mentioned that, I feel so much better. I thought I was an extremely slow learner just coz I couldn't understand it.

I have that as a mental note in my head that Cap rates have an inverse relationship with the price.

Thank you for adding that analogy though. Which makes perfect sense coz if there's something wrong with a property then you have to sell it at a discount not at retail. Light bulb! 💡

@Immanuel Sibero I appreciate it. I have a feeling I'm going to encounter this term anyway. Maybe not right away in this purchase but in the future. I thought this was a very educational thread and I tried to make the use of it plus try to apply it in my current situation. 

Thank you for pointing me to the right direction though. Do you mind if I connect with you and keep in touch? Either way, take it easy!

@Immanuel Sibero Thank you for this valuable information. I'll refer to your post for future reference. To the point you made, I was going to use Cap Rate to determine an asking price. If I understand correctly, it doesn't matter how poorly a 4-plex is performing to determine its value because an appraiser is going to determine its value using comps, correct?

Yes, I'm looking in to purchasing my first 4-plex in the Killeen, TX area. If I used Cap Rate in the wrong context then I wouldn't find someone else just coz she didn't understand what I was asking for. My agent probably didn't know what Cap Rate meant too. 

Thanks again Immanuel! I appreciate all the help.

@Immanuel Sibero Thank you for your input. You actually brought up something I wanted to ask. I was going to ask if local agents would know the market Cap Rate. I asked my agent and she basically said she couldn't get it. Dan Brewer actually explained it well enough for me to understand but I'll continue to research about it. That's how I arrived to this thread.

Can I ask just one more thing Immanuel? I understand that Cap Rate is not as valuable in smaller properties but how about with 4-plexes. Can I use Cap Rate on a 4-plex?

@Dan Brewer 

You don't know how long I've researched on what Capitalization Rate means and you were the first one to make sense of it all. Thank you so much! It's like the light in the room finally turned on.

Just to clarify though, you mentioned the market dictates the Cap Rate then how would I go about and finding what is the current Cap Rate of my market? Do I pull recently sold properties and solve that way?