All Forum Posts by: Brandon Gamblin

The following is a hypothetical situation about investing in rental properties that I came up with in my head from what I already know. I don't know if its correct or incorrect, but here goes:

Let's just say I bought a single family home for $30,000 and the repair amount is $10,000, then that means the total amount I invested so far is $40,000. Also, let's assume that the property has an FMV of $90,000. If I divide the amount I invested, which is the $40,000, by how much I expect to make per month in cash flow, let's just say, $500 per month, that will give me the number of months that it would've taken me to get my money back through the cash flow. So, $40,000/$500 = 80 months = 80/12, which is approximately equivalent to 6 years and 6 months (I got 6.66666…… on my calculator)? So, it would take somewhere around 6 years and 6 months to get a return on my investment.

Is this how this works?

Also, if I make my money back after those 6 ½ years, and then turn around and sell the property at $90,000 (Hopefully it would have appreciated over those 6 years) then isn’t that another $50,000 that I have made on my investment of $40,000.

Is this how that works or am I missing something?

The following is a hypothetical situation about investing in rental properties that I came up with in my head from what I already know. I don't know if its correct or incorrect, but here goes: 

Let's just say I bought a single family home for $30,000 and the repair amount is $10,000, then that means the total amount I invested so far is $40,000. Also, let's assume that the property has an FMV of $90,000. If I divide the amount I invested, which is the $40,000, by how much I expect to make per month in cash flow, let's just say, $500 per month, that will give me the number of months that it would've taken me to get my money back through the cash flow. So, $40,000/$500 = 80 months = 80/12, which is approximately equivalent to 6 years and 6 months (I got 6.66666…… on my calculator)? So, it would take somewhere around 6 years and 6 months to get a return on my investment.

Is this how this works?

Also, if I make my money back after those 6 ½ years, and then turn around and sell the property at $90,000 (Hopefully it would have appreciated over those 6 years) then isn’t that another $50,000 that I have made on my investment of $40,000.

Is this how that works or am I missing something?

Hello BP family...... This post is regarding how to present a rental property analysis (if thats what it is called) to rental investors.

Ill be asking multiple questions in this post.......

In a situation where prospective investors are asking you to send them details about a property that you currently have under contract,
Q1. what are my options in how (Excel, PDF, Software Service Provider) I send it to them?
Q2. And what pertinent information or line items should be magnified when presenting the deal? Or what is most important to rental investors when looking at any deal?

This is concerning a single family rental and the current situation is that these prospective investors are online, but are in my local market, so I know I have to send it to them through email.

Q3. Do I use a pro forma statement format and send it to them? If, not how?
Q4. When is a pro forma statement best utilized in real estate investing?

Hello BP family...... This post is regarding how to present a rental property analysis (if thats what it is called) to rental investors. 

Ill be asking multiple questions in this post.......

In a situation where prospective investors are asking you to send them details about a property that you currently have under contract,
Q1. what are my options in how (Excel, PDF, Software Service Provider) I send it to them?
Q2. And what pertinent information or line items should be magnified when presenting the deal? Or what is most important to rental investors when looking at any deal?

This is concerning a single family rental and the current situation is that these prospective investors are online, but are in my local market, so I know I have to send it to them through email.

Q3. Do I use a pro forma statement format and send it to them? If, not how?
Q4. When is a pro forma statement best utilized in real estate investing?

Hello everyone.......Question.......I've heard that NOI only applies to commercial properties. Can we use this measure for single family homes, duplexes or quadplexes? Can someone explain why or why not?

I've never done rentals before. I know how to find the ARV of a single family home, but how do you find the ARV of a multi unit (duplex, quadplex) and multi unit apartments? Isn't it based on the income the rental has produced already? Thanks for replies in advance.

Is it a good idea to have company branded contracts? Does anyone do this with your contracts and can you describe how that helps or hurts you in business? Thank you in advance for your input. 

The reason why Im asking is to better prepare myself and make adjustments for when I negotiate with sellers from here on out. Do you think the seller would be understanding of the buyer having busy contractors and the possibility of that reducing the chances of getting the contract signed? I mean sellers are more likely to sell if you can buy right now? Correct? 

When a seller asks you, “What does it mean to assign” or “What is an assignment?”, what is the best way to respond to that?

As a wholesaler, what are the pros and cons of dealing with an investor that has traditional financing? What are some rules of thumb when in this type of situation? Do I deal with these type of investors differently than an investor using a hard money lender or another means of financing?  

And is this part of the “qualifying the buyer” process? If so, what is the best way to deal with this type of situation as a wholesaler?