All Forum Posts by: Ashwani K.

Specific to DFW market question. Saw a promotional email from DFW REIA (http://reiadfw.com/) about joining them for 100$/yr. Their meetup seems to be highly attended, and the only one I attended a few months ago seemed like was for people who are active investors.  

I am a beginner investor with interest in acquiring more properties, but am not active enough in the networking. And, as a beginner, more interested in deal analysis and conservative investments (flips & complex financing etc scare me). 

Seeking opinion from other DFW area investors if this membership would be worth it and best ways to use that membership if I do sign up.

As a beginner, I would like to get some comps on properties in local market, and work on my deal analysis skills. Eventual goal to be able to smell a good deal and move quickly on a good deal.  

However, as a common guy, I am not really sure how I get information on deals in my market. Agents or sellers won't talk to me if I ask them to give me deals that come along their way (they want serious buyers and makes sense), and not sure if wholesalers are interested in sending me proformas  just b/c I want to learn.

I am assuming this is a common complaint from beginners to deal analysis learners. How to overcome this?

I have often received comps from my agent over email. Generally, he sends over a 1-page pdf with mortgage and cap rate info. And other times, I have asked him to send the excel file that he used to come up with info. Along with the comps, he sends me the MLS link and any pictures etc of the place.

And, when I am having to deal with contractors, I am having to share pictures of products or home depot links for him to buy for any repair work. 

I would love a way where agent can upload his calculations somewhere, and I can go there to the online calculations and play with numbers myself. Kind of shared calculators I guess.

Is there a better way to share calculations, mls info between agents, buyers (specially group buyers), contractors?

 that works too :-) Whatever gets the job done.

Are you expecting this kind of a list to be a private list with very short-term use, or do you think you might need it for future reference (like tax purposes, recurring list or others)?  

Have you considered using the online todo-list services that you can attach images to, and then share with your contractor?

 While this is possible, it borders on creepy. There are many websites that will sell you on personal & financial info for some money. But, it is amazing how much personal information is already available online. I can imagine this kind of intrusion is legal, but would be uncomfortable if the homeowner found out.

I came across a apartment complex in Dallas area and did my learning exercise of cap rate. 

Property details as mentioned:

Price: 795K
Units: 12
Occupany ~95%
AGI: 172K
AGE (expenses):  95K
NOI: 77K
HOA: 66K

My Calculations:
Tax rate: 2.82% (total)
HomeInsurance: 0.35%

I just looked up conventional loan at 25% down, added up standard costs, and monthly mortage with principal comes to 10K. Further, estimated 35K in annual expenses (have a suspicion that this is too high), calculations become:

AGI: 172K
Mortgage: 12* (10K-3K principal) = 12*7K = 84K
Annual expenses: 35K
NOI: 53K

So, cap rate would be around 53/795 = 6.95

Assumptions:
1. I will manage the property myself, so no management fees
2. Not sure how assessments impact the costs, so any pointers would be great
3. Any large expenses are not planned in these calculations

From all this, it doesn't sound like a great deal to me. 

Can you please review this and let me know if my calculations have some obvious holes in them that I am not looking at - like unknown expenses, costs or income risks? I can point to realtor link but wasn't sure if it is allowed on this site.

Jay

Found this old post from you and was curious about the agency comment.   

I am curious what is this agency you are referring to? I have a section 8 tenant who is connected to disability program and she has so far been very good. Asking for future reference.

Any recommendations on lenders that I can work with?

Thanks for the replies. Some notes from the questions and comments above:

1. LTV, I am ready to put more than 25% down if needed. I have enough cash to put in 35-40%.

2. I am still trying 2-3 mortgage brokers. I hope the multiple credit inquiries doesn't put in a dent in the credit record.

3. The collections I have are: In 2008 - 3 collections on medical. With a new baby, we had lots of invoices and statements. In 2011 - 2 medical payments from a surgery. And, agree that lender doesn't care. I will be calling up these companies to pay up and get these removed from my record.

4. The closing is set for Nov end, so I am scrambling right now. Not sure if the seller is willing to wait for 2 months for me to line up financing. And, there are other competing bids, so I would like to take this opportunity if possible.

Good point about furnishing the existing contracts with my client as proof of future income. I will get to this.