All Forum Posts by: Brad Bellstedt

1. Pro forma calculations. NOI (8,358) divided by the ARV (140,000) = the pro forma cap rate of 5.97%.

2. Debt coverage ratio. How much money does the property cashflow after debt services are paid each month. Investors and lenders want to see generally 15-20% or more because that means (in theory anyways) that the property produces enough cashflow to pay the mortgage back and keep the building maintained. Each lender may have a different/specific criteria for how much access cashflow they require before they will lend on the property. 

3. Gross rent multiplier. Not really all that important. I've found its just an easy way to qualify a property on an apples to apples comparison. By no means should any investments be made on solely this figure. It's more of a gauge as to whether or not you want to dig deeper on this property or discard and move onto another. (That's how I use it anyway. It doesn't account for expenses so it's not reliable measure of much of anything.)

In this case it's counting how many year of rent collecting would it take to get back the initial purchase price of $45,000. (2.88 years X 12 months = 34.5 months X $1,300/month  = $44,928.)

Hope that helps!

Hello Amy and welcome to the world of RE investing!

Before we can give advice, can you tell us about what it is you hope to accomplish? There are literally hundreds if not thousands of ways to invest in real estate and what's a best fit for you will depend on what it is you hope to get out of your investing career. 

Any success stories? It's been 5 months now since the last response and I'm interested to find out if anyone has seen success from that list since it's been posted. 

I posted this to Facebook and a friend of mine who happens to be in the industry offered to do it for just under $400. From what I've learned Goettl is by far the most expensive due to the massive advertising budget expenses. 

From what I understand, it is very difficult to get approved while collecting unemployment but if there is a way, I know of someone who would be able to do it. I'll message you her contact info. 

I know of someone here in Las Vegas who does those. She's an amazing lender with 26 years of experience and she's done EVERYTHING you can think of in the lending world. I'll private message you her contact info. 

Goettl wants $933 for a duct cleaning and $1,685 for the installation of an electronic air cleaner to give our tenants the best air quality. Is that too much?

You guys sound exactly like the kind of people I hope are in my mastermind group. I too am concerned about inflation. I watching something from BP which recommended something else, which recommended something else and like 4 recommendations later I came across this video series called "The Crash Course" that's all about our money system and how it works, how banking works, how the fed prints money, inflation and on and on and on. If you think you can be better prepared by understand the entire system in general, you might want to check it out. 

Warning: It's LONG...It's broken up into 25 episodes of varying lengths but overall I'm sure it's 3 hours or more. 

@Mindy Jensen Lol. I thought I might have been a little conservative there : )

Grow in which way? I just bought the BP intention journal and I'm trying to grow in just about every way with exception to my waste line. What are you trying to do?