All Forum Posts by: Ali Nurmohamed
Ali Nurmohamed has started 22 posts and replied 47 times.
How do I syndicate a deal. I’ve found a multi family home and don’t have the money. Now I don’t exactly know how to make a syndication official. I know how to structure it, but don’t know if I should go to the notary.
Post: How do I know how much the refurb is gonna cost and what the GDV will be?
- Investor
- Posts 47
- Votes 5
Do I just make a guess? Do I go to a appraiser?
Post: How do I find investors here in the UK?
- Investor
- Posts 47
- Votes 5
Do I just contact real estate agencies and property managers to see if they could link me up with investors?
Post: How do Muslims buy real estate?
- Investor
- Posts 47
- Votes 5
Quote from @Chris Seveney:
@Ali Nurmohamed
To start I am not Muslim but have several close friends and am aware of the beliefs in interest for loans. Is that what you are referring too?
Here is a link to add some insight.
https://www.guidanceresidential.com/resources/home-buying/do-you-have-to-be-muslim-to-get-an-interest-free-mortgage/
Post: How do Muslims buy real estate?
- Investor
- Posts 47
- Votes 5
This question is for the Muslims who take out a loan for financing a deal. Do you lend money from a Islamic bank?
Quote from @Randall Alan:
Quote from @Ali Nurmohamed:
Quote from @Randall Alan:
Quote from @Ali Nurmohamed:
Do you calculate your NOI over you Gross scheduled income or just your Gross income?
Not exactly sure the difference in your terminology... but if you are calculating the NOI of a property it is all revenue (of the property) less all expenses (of the property)... usually across a year, so that you capture property taxes, property insurance, etc. I would exclude security deposits as revenue. If you are trying to forecast an NOI, you would want to also factor in anticipated expenses for repairs, vacancy, capital expenses (Major repairs - roof / AC systems, etc.)
Randy
gross scheduled income is your annual potential gross income of the property for instance if you have an apartment complex with 10 units and you actually rent out all 10 units not only 5 or 6 of them so it’s your income to the max as one would say. And your gross income means basically the income your property generates not what your property potentially could make. I hope you understand my question better now.
hope to here from you.
So it comes down to what your purpose is. If you own this property already and someone asks you, what is your NOI, you would base it on your actual rental income and actual expenses for the year… and probably notate only 6 of 10 units were operating / occupied. (Your vacancy shows up as less revenue). Anyone looking at your NOI would expect you to be operating at capacity, so if you were not… like "several units were being renovated throughout part of the year) you would want to notate that somehow to not make it not look like you couldn't rent them. The lower NOI obviously looks worse for the property. You could offset that figure by saying, "but hey we were making improvements and anticipate revenues to return to full occupancy after the renovations."
But as a forecasting tool (ie you don't own it yet) but you want to understand what your NOI could be, you would usually expect all units to be occupied and would use the maximum occupancy and anticipated expenses - including an allowance for expenses such as vacancy and repairs, taxes, insurance, capex, etc. so there you would reduce your NOI by all those anticipated expenses you might not know yet and estimate them.
Be sure to anticipate your property taxes resetting after they factor in your new purchase price, that can sometimes dramatically increase your expenses. Look and see what your current taxes are based on the appraiser’s website. If your seller paid $100,000 for the property, but you will pay $300,000 for the property your taxes will likely come close to tripling down the line. You can reach out to your appraiser to know exactly how they calculate that.
Again, knowing your purpose would help with this discussion.
Randy
Thank you for your reply. I understand it much better now. I was reading a book and in the book the author said that when you calculate your NOI you have to calculate it from the gross scheduled income. So it got me a bit confused.
Because of you I now understand it, thank you!
Quote from @Randall Alan:
Quote from @Ali Nurmohamed:
Do you calculate your NOI over you Gross scheduled income or just your Gross income?
Not exactly sure the difference in your terminology... but if you are calculating the NOI of a property it is all revenue (of the property) less all expenses (of the property)... usually across a year, so that you capture property taxes, property insurance, etc. I would exclude security deposits as revenue. If you are trying to forecast an NOI, you would want to also factor in anticipated expenses for repairs, vacancy, capital expenses (Major repairs - roof / AC systems, etc.)
Randy
gross scheduled income is your annual potential gross income of the property for instance if you have an apartment complex with 10 units and you actually rent out all 10 units not only 5 or 6 of them so it’s your income to the max as one would say. And your gross income means basically the income your property generates not what your property potentially could make. I hope you understand my question better now.
hope to here from you.
Do you calculate your NOI over you Gross scheduled income or just your Gross income?
Post: Does someone have a business plan for a RE deal that he or she wants to share with me
- Investor
- Posts 47
- Votes 5
Quote from @Brett Deas:
What type of deal are you wanting to see? Typically smaller properties and single families don't have a whole lot to show, as there isn't as much that goes into them. VS if you were looking for big apartment complexes those would have hundreds of documents.
Quote from @Eliott Elias:
Depends on what the due diligence is for and what the asset is. Get a inspector, property manager, maintenance guy, operator, partner out there.