All Forum Posts by: Alex Hively

Originally posted by @Tj Hines:

@Christopher Toth  Usually low level tasks that are just important but not that important to spend a lot of my time doing to continue to move the needle forward. I usually have them scrub list. Make phone calls. Schedule appointments. Things of that nature.

I have my VA's doing the same exact thing. I also have them deal with my cash buyers recently and input the information into my CRM. It has worked out pretty well so far.

I'm actually going through the Stringham Course right now. It's pretty nice, you can learn at your own pace and go into the school itself whenever you don't understand something and ask the teachers. 

I ended up missing it. 

I'll be at the wholesaling meetup though. Looking forward to connect to some awesome people.

Hey Amit, 

I am also in agreeance with everyone here. 

What I typically write up when investigating a property is the following:

VACANCY: 7-10% (depending on where the property is)

MAINTENANCE: 10%

PM: 7-10%

Some other expenses you should look for are:

Taxes, insurance, water/sewer, garbage, electric, gas, advertising for units, lawn service/ snow removal, accounting or legal fees. 

Good Luck

Alex Hively

@Jared Rine: 

Where would you look to find out which county is a Top Tier, Middle Tier or Low Tier.

Thanks

Alex Hively

Hello everyone, 

If you if you don't mind, I'd love to be part of this group as well. I certainly could use some help and accountability and willing to help out who ever needs it in any way I can. 

-Alex Hively

Chris, I love the answers that you've given. I'm also having a hard time trying to come up with the money needed for a down payment for some of these properties, so thank you for your information and your wisdom. Alex

Hi All,

I'm looking to work with a couple of experienced listing agents in the Milwaukee and Chicago areas.

Any recommendations are greatly appreciated.

Thanks!

Hello,

I was wondering if everyone here can check my work. I am trying to figure out how leverage can magnify my returns by using various amounts of down payments: specifically $100,000 ( an all cash purchase), $50,000, $25,000, and $10,000.

    Example 1: $100,000 all cash purchase

ROI (return on investment) = income (NOI) / cash investment

                                                     = $10,000 /  $100,000

                                                     = 10%

 -  I understand that in the real world that I wouldn't pocket the entire 10 k and portions of it would go to Vacancy and Operating Expenses such as insurance, repairs, maintenance and property taxes.

If I finance part of the purchase price, I would make mortgage payments on the amount I borrow. If we assume I find financing at 8% for 30 years, I will have to pay my lender 7.34 a month for each $1,000 I borrow.

      Example 2 : $50,000 down payment with $50,000 financed.

               Amount financed     (50) x ($7.34) x (12) = $4,404 is my yearly mortgage balance.

(($10,000 NOI) - $4,404) = $5,596 is my net income after mortgage payments

ROI = (net income) / (down payment)

                                            = $5,596 / $50,000

                                     ROI = 11.1%

     Example 3: $ 25,000 down payment with $75,000 financed.        

           Amount financed  (75) x ($7.34) x (12) = $ 6,606 as my yearly mortgage balance.

(($10,000 NOI) - $6,606) = $3,394 is my net income after mortgage payments

ROI = (net income) / (down payment)

                                               = $3,394 / $25,000

                                        ROI = 13.6%

     Example 4: $10,000 down payment with $90,000 financed.

             Amount financed  (90) x ($7.34) x (12) = $7,927 as my yearly mortgage balance

(($10,000 NOI) - $7,927) = $2,073 as my net income after mortgage payments

ROI = $2,073 / $10,000

ROI = 20.7%

Thank you.

@William Hochstedler

I would like to say a big THANK YOU!!!!!! for sending me to my own county recorder in Milwaukee, Wisconsin. I just found 290 people in the need of help that are in the process of foreclosure.