All Forum Posts by: Ariel G.

Hi. Can't seem to make a strategy based on HML. Let's say 100k market value home bought at 70k. Assuming: HML financing 55% at 12%= 38500 + down payment: 31500 Rent: 1000 USD Assuming 50% rule= NOI 6000 - HML yearly interest: 4620 Yearly Casflow: 1380 ROI: 1380/31500 = 4.38% for the first year Switching to a 5% interest mortgage on second year: ROI: 4425/31500 = 14% If BRRRR applied: 70K + 15K (repairs) = 85K total cost ARV estimated= 105K Refinance: 55% x 105K = 57750 Cash recovered: 57750 - 38500 = 19250 New rent: 1200 New NOI: 1200* 0.05 * 12 = 7200 New Interest payments: 2887 ROI: (7200 - 2887)/(31500 - 19250) = 35% Is this correct? Comments? Thanks.

Kol Hakavod Shalom!!!!

Im happy for you, remembe our last phone call before you were taveling, nothing was guaranted, you jumped into the sea.

Keep going, the second deal will be even better!

On my side Im actually maybe turning to the FixnFlip area, earning funds to buy afterwards rentals.

PM me and lets keep up to date.

Ariel.

@Guyoz Golan (we should create a biggerpockets educated network, maybe do some meetups here in Israel, do you know other people? Please PM me)

Is there such a thing as a ballo on payment of the interest toguether with the loan amount rather than paying it on amonthly basis and only the loan amount at the end?

And Rick can you explain more the part of "did not protect the investor"? How can a hard money loan be risky? What to watch for?

Thanks. Ariel.

Hi.

I was wondering, how do people trust others with their money without knowing them?

Investing out of state without knowing the people seems threatening.

I wonder how people build  local teams without traveling there? What's the logic people use?

Are recommendations enough? How do you do it people?

Originally posted by @Tal Abraham:

Hi Ilan,

+1 for Omer's comment about thinking ahead at this age. I am sure with this attitude you will do great!

Real estate investment is possible everywhere, its just a question of how much money you need and what is the ROI you can achieve.

In Israel you should have much money in order to start, and the ROI is very low, this is why I started investing in the U.S market. Although there are ways to start investing in the Israeli market without \ with low amount of money, it doesn't worth it, and the ROI you can get in the U.S market is much higher.

This comment is true also to the U.S market - there are more expensive places than others, and there are places with higher ROI than others, its just a question of where.

I am investing in Pittsburgh, PA - prices are pretty low , where you can get good rental property with a solid passive income for about 250,000 NIS, with something around 10% ROI after deducting all kind of expenses, like local taxes, management comapany fees, insurance, etc.

Send me a PM so we can share phone numbers to continue and talk - I can share with you some of my experience and help you learn and get started.

Also you can look at the local Israeli meetup I have started for this purpose  - sharing, learning and helping one another.

Hi Abraham I'd like to join the meetup can you direct me?

Why did you choose Pittsburg?

Does that 10% your are mentioning consider CapEx?

How did you do your first buy? Did you do it with a company or you jumped to the pool by yourself? I'd like to read if your beggining story as an Israeli.

Thanks for sharing.

Greetings from Jerusalem

Ariel.

Hi

This is to create a list of us Isreali US investors so we can create an organized independent network group and organize events, share experiences.

Please post here to know you are interested, saying what your level of experience is in the US, what is your next goal and what are you needing to getting to it.

Ariel.

Yeah, In understand that, invest for cashflow and not apreciation, that's Robert Kiyosaki's most popular moto. 

The question is WHY, why is it like that that cashflows dont get affected by RE crises?

Any theories??

Originally posted by @Adam Fout:

Jonathan Beemer

It makes sense to buy in a down market but what happens if the market stays up for 2, 3, or 5 years? There are deals to be had now and you would be missing out on years of appreciation, loan pay down and profits. Good deals may be harder to come by, but if you put the work in, you will find them.

I honestly feel that trying to time the market is not the best strategy. Buy right, manage properly, hold for cash flow and do not wait for a market crash. Waiting is just an excuse not to take action. If you find the right deal, a market crash will not affect your cash flow. If and when the market does come down, use creative financing, like the equity in your properties, to purchase another property at a huge discount.

"Waiting is just an excuse not to take action. If you find the right deal, a market crash will not affect your cash flow."

I loved that, and heard a lot what you are saying about the "market crach not affectic cash flow" but Im trying to understand why/ Could you or someone reading here try to explain what the reason is for it not being affected? Doesnt it make sense that during a crash people wont have money to pay therefore the offer will be high and the demand will be lower (by people moving to lower class neighborhoods)?

Originally posted by @Account Closed:

I tend to look at things differently...my monthly capex reserve = my monthly depreciation expense. Using MACRS 200% DB. My reserve is higher up front on replaceable items but I feel my reserve number is actually tied to a replacement cost as opposed to a random estimate.

Could you say Ed the CapEx is recoverable by depreciation on taxes at an important extent?

I wonder how much tax return you can have from depreciation and which porcentage of your CapEx is really recoverable.

Hi thank you for the helpfull responses.

By the way I'm a Out of State investor (Live in Israel), so no mortgage option, so either alone full cash on SF or with a partner in a MF. (Provides us with mortgage, and also he works at a Realtor Firm)

Answering to the questions:

1. What are your goals?

Cashflow, and getting the safest possible investment for being my very first one (Is this the question's intention?)

2. Do you have cash saved?

Yes and No. I  have a property in a different country, but might be selling it because it's not been giving good returns. But if I don't sell it, I have no problem to get the downpayment as a loan (out of the US)

3. What price range are you looking for?

I don't know, I read that $70.000 is a good amount without adding more risk, but 100.000 safer, so guess around that. What are your thoughts and recommendations?

4. Do you have partners?

I do have a partner in California offering me to buy a MF together, so it would be a MF there with him or a SF alone maybe in Ohio.

5. Have you been educating yourself on Real Estate Investing? If not I recommend you start with with him.

Yes I've been, read many books so far, podcasts, etc. Trying to get out of analysis paralysis.

Looking forward to further advice.

Thanks.