All Forum Posts by: Alan Hale

Quote from @Chris Seveney:

you mention ARV - what is the cost to repair the property to get it to that ARV? I do not see that anywhere?

It's elsewhere on the sheet (it's a large sheet). Purchase price is 250k, 40k rehab, 360k ARV.

Honestly, no. I get emails of the properties from wholesalers with photos. I have enough construction/rehab experience to estimate a rehab cost. Then I plug everything in.  The loan info (hard money for acquisition; conventional for refi) is from actual conversations or emails with lenders. 

Bank/conventional lender. I noticed I had vacancy in the column twice, so I reduced both to total 8% like you suggested. I also reduced a lot of the soft expenses (office, accounting/legal). Still, I'm having negative CF. 

Yes that LTV is what was quoted to me by the lender.

Is my modeling wrong?I'm running BRRRR deals through my modeling sheet and none of them ever come with positive cash flow. (All from the DFW area)

Attached is an expense chart for a house purchased at $250k with a $360k ARV, refinanced with a 6.65%, 20yr fixed rate. Debt service on this is $2308/mo which seems really high. I'll admit I do build in a lot of cushion (something I learned from my first flip deal) so I account for every possible expense.
The other picture (with the green boxes) is the return for possible scenarios - MTR, STR, LTR - but all have negative cashflow.
What am I missing?

Quote from @Kang-Li Cheng:

Quote from @Diana Ung:

@Kang-Li Cheng - Just wondering if you have any updates on your experience with Doorvest? Thank you!

 I'm pleased to say things have turned around. A new tenant was placed and things have been going better. The new customer service rep is more responsive and more responsible, which makes a big difference.

 I just heard about them via the BP Business Podcast.  Would you still use them? 

Thank you gentlemen. When we did our first flip I remember running the numbers that way - accounting returns only for the cash we actually put in.  So to read it different threw a wrench

This is for those of you that read the book (as I'm on my 2nd time through).  Of course anyone can chime in. 

1)  341-343,Chapter 42.  It says "Profit = sales price - purchase price - expenses"  Even on the levered fix-and-flip deal example it gives the full purchase price.  But if you're financing 20% down on $100k (like the book says) isn't your "purchase price" only $20k?  Instead of $200k-$100k-$60 expenses, shouldn't it be $200k-$20k-$60k expenses?? 

2) On the second 'Hone Your Skills' bullet point, I'm getting an answer of $57000, not $63k like the back of the book says. 
$400000-250000=200000. Expenses total up to $93k.  200k-93k = 57k.  So where is the $63k solution coming from? 

It's a great book and I've learned a lot from it.  I'm just hanging up on these. As it says on p.344 "make sure your assumptions are sound..." Thank you to J. Scott and Dave Meyer for writing it.

Quote from @Ned J.:

Any of you familiar with the Stephenville area? Kind of out in the middle of nowhere, but my son just started college at Tarelton and we live in CA, so its on my radar now...university has plans for big growth in the next 5-10 years. 

I know this reply is a little late.  I think a lot of the growth Tarleton has isn't necessarily in Stephenville.  They are building a "satellite" campus in southwest Fort Worth that's supposed to be larger than their main campus.  That may be the big growth you're hearing about.  I also 2nd the commenter who said Stephenville is outside of the trajectory for DFW.  Stephenville/Erath County isn't even considered DFW MSA.  

Are your meetups every Saturday morning also?  Do you announce them on other platforms (ex. FB events) or only on here? Thanks, Alan.