All Forum Posts by: Ariel G.

Me interesa conocer tu experiencia en inversion en RE en Chile. Yo tengo una propiedad en el sector oriente, los arriendos estan muy bajos para el precio de las propiedades, cual es tu opinion en el area? Dices que te dedicas a comercial? A que tipo? Por que razon prefieres?

Saludos.

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Hi Sean. Welcome to BP

I have been thinking to organize a REI Israeli group to discuss this issues of investing in Israel and the US, make connections, and learn toguether. Some sessions could be live, some as webinars, presentations by ourselves, etc.

If you are interested please write back to inbox.

I also invite Amit and other Israelis reading this.

Ariel.

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Hi. How about creating connections of people living in Israel looking forward to invest in RE? Compare the IL to the US market and exploring people's experience in US investing and exploring the possibilities.

Please for starting the topic post here about your opinion and experiences on the subject

Ariel.

# Israel # Israeli #Jerusalem # Tel Aviv

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Hi Anne.

Welcome to BP

Im also an Israeli and interested on investing the US market. I'm hearing repetitively among Israeli investors the idea that investing here in Israel is not so productive. I see the rent to property price ratio is very low, and I don't think it would be easy to persuade someone to fulfill our 70% rule around here, I don't know. what are your thoughts on this?

I think it would be great to create a Real Estate meeting group of literate on RE Israelis that are on BP and have meetings to discuss this subjects of investing here and abroad as well, team up, contacts etc. If it sounds interesting to you please PM me. Would be great connecting with you.

Ariel.

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Originally posted by @Michael Lee:

Hello and welcome to BP! With Private Money and Homeowner financing you can get a more negotiable loan just do not have a prepayment clause that will minimize you paying down your mortgage earlier. You can pay all cash but that is not always an option. Reducing expenses is pretty difficult but not impossible. It is easier, typically, to increase income than it usually is easier to reduce expenses. That usually depends what you think about leverage.

You picked a great website to learn and ask questions. I am 59 years old and I found BP about a year ago and I have not decided which niche to get into when I get over my medical condition. I start working when I was 14 years old and I never stopped until I had a brain aneurism and a stroke. I graduated from college with a business degree that emphasized real estate.

Always remember to do a math analysis on your prospective property deals and try to look at them before you make an offer or just have a clause in the sales contract that will allow you some time (usually about 15 days) to detail the construction of the improvment and possibly back out of the deal without a penalty that will hurt you.

Right after you close on a property, get an insurance policy that will protect you in case of a loss. As soon as you comfortably can, after closing, get the exterior door locks changed. If the old locks are still in good shape just install them on the next address.

Another thing to work on is putting together a Team of professionals that you can trust, know what you do, are experienced in what you do, and are local. The typical primary Team members are Attornies, real estate Agents, CPA's (or accountants), Inspectors, General Contractors, and Handymen.

Since I was in Texas when I graduted college and planned on staying there, I found out that I was qualified to get a broker license after I passed a test first, so I did take the test and became a broker. I never did that full time. Regardless of what I had I felt more comfortable in the construction business. I kept that broker license for about 30 years and I closed a few deals for other people. I only closed one investment for myself.

My father has been into the buying and selling real estate for about 45 years and he has taught me a little bit. If you think that I could help you please contact me through BP at any time. Good luck to you!

Michael very helpfull, advices apreciate it.

Be successfull as well and healthy!

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Brent what do you mean by "ALL expenses"? I dont quite follow. Can you compare with the formula I described above? (Taken from "Investopedia")

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Hi. I appreciate the above answers regarding how useful the 1031 exchange is regarding taxes and will surely consider it.

I would like tho to ask for someone that could give me his opinion on my questions above regarding transition between investments and mortgage and operating costs reducing.

Appreciate it. Thanks!

Ariel.

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Originally posted by @Andrew Syrios:

I'll run down the list real quick:

1. It really depends on your market and price point. Generally speaking, I aim for 25% because banks loan 75% on investor properties usually, so that's what it takes to BRRRR out completely. That would be my general recommendation, but it depends on how tight your market is.

2. This is tough for me too and a lot of people. You get better with practice though. My best recommendation is to explain how you arrived at your number. This way, it doesn't feel like you're just firing off a heartless low ball.

3. They don't necessarily need to be in very bad condition. It's more about the seller's level of motivation, which could be high even if the property is in good shape. Usually it will require some work though, but if you're less experienced, I would avoid the massive projects.

4. The Millionaire Real Estate Investor is still my favorite real estate book, although it doesn't have a huge section on marketing, it's still good.

Hi Andrew. Thank you for dedicating yourself to answer in such an ordered manner to my questions.

Wanted to ask you, in your experience what are the most successful justifications for a price lowering you used that were reasonable to your sellers and worked?

What are the main points the rebated at you when you throwed at them specific justifications and how did you overcome them and convinced them?

Thanks. Ariel.

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Hi. I'm looking for the experimented people's help. I'm looking for your feedback on CoCRoI calculation.

CoCRoI: (Cash Inflow - Cash Outflow) / Cash Outflow

Being....

Cash inflow

Selling price - pending mortgage =

Selling price - (initial mortgage - total capitalized amount to date)

Cash Outflow

Money down + closing costs (bank+ RealEstate agent fees) + administration costs + taxes paid + maintenance costs + total interest payments paid to date (monthly payment - capitalization)

1. Am I missing, duplicating, erring in something

2. Whats according to your knowledge and as well your experience is a good or realistic percentage for CoCRoI.

3. Is this useful for analyzing a potential deal or also for a deal that you already have?

4. Is this the best index to analyze a REI? Is there a better one according to your experience? Or depends on the alternative action you are thinking to take to decide which index to use?

Thank you very much.

Ariel.

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So basically what we are saying here is that we all agree that the real market value (that would be lower in most of the cases than the seller's offered price, because they are always inflated) should be estimated by the investor acording to similar properties in the same area (I suppose you would have to visit many properties to be knowledgeable of the real estimates market worth), and from that estimated price, lower from it the repairing costs to be in the same level.

From that price estimate the costs for the transaction and discount them from this price. That would be the price to break even? You agree?

After that any dollar you succeed to lower would be what you gain from the investment in an immediate way (and not considering future appreciation). There each investor should be thinking on what the amount of earnings from the transaction would make it worth or not to be invested in.

Here we have a discussion, weather this value, or equity, should be gained only by adding a new force added value to it, or also from taking some previous equity.

Correct?

I think weather or not you would take previous seller equity, would depend of you being or not successfull to create new equity. If you are not, then the only way you would make an offer, would be by taking certain amount of previous equity, if not, that property would not be worth investing for you.

Makes sense? Agree?

Ariel.

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All Forum Posts by: Ariel G.

Ariel G. has started 16 posts and replied 51 times.

Post: Investor in Santiago, Chile

Post: Hello BP! Newbie from Tel Aviv

Post: Israelis and US investing

Post: Hello from Israel

Post: Transition to a new property procedure

Post: Cash on Cash Return on Investment

Post: Transition to a new property procedure

Post: 20-30% Rule

Post: Cash on Cash Return on Investment

Post: 20-30% Rule