All Forum Posts by: Brent C.

I am looking to buy 3-5 multi family properties with a 10-12 year plan. I will be out of town most of the time and was thinking more along an A class property in a good area with 50% financing. I am very busy running my company so can make my higher returns in my own business and these properties are just for retirement and no income needed. I wonder if anyone has a good strategy for someone like me? Also any particular areas that look good for a 10-12 year timeframe?

Thanks in Advance!

Brent

I was a painter interior designer for 10 years 15 years ago, and we painted brick often in black semi-gloss paint with cream stucco. and black trim. Made the old house look pretty retro. These were old almost tear down homes but structurally fine and used as rentals for professionals. There are many options for color and sheen, but I would consider all other options first like siding and trim color changes and then lastly painting brick. Also if like you said it looks dated and everyone has brick this maybe a good way to make it standout. A semi gloss or metallic paint may give you a high look that looks actually better than the brick. Just make sure the proper primer is on and use a fine pile roller to roll each coat on then touch up the cracks with a brush.

If we are seeing in some case an increase of 300% cash buyers what is this telling us about the future of the real estate market? Is this an indication that a lot of investors are artificially inflating prices? I'm interested in seeing historical data and comparing it with the housing market in the past to see where we are now. A lot of this activity we are seeing maybe and probably investment driven.

What are your thoughts on this?

Does anyone know where you can find stats on the percentage of sales in a given area that are foreigners buying? Also historical data.

Thanks in advance.

Brent

Ok Thank you. Will check into these.

Where is the best place to find;

Historical data on house prices by location?

Rental data.

Unemployment rate.

Average income.

Population data.

I would like to do some comparables.

I came across this book the other day thinking I'd give it a read. I'll order it. Cheers!

Brent

Hi Jon,

Thanks for that.

By going with a Cap rate of 10% after the 50% rule and a 25 year amortization at 6.5% I'm coming up with $56,712 a year in payments so I would actually be out of pocket $6,712, and assuming appreciation is equal to inflation there is no gain there, so why would anyone bother? Don't hard loans seem a whole lot better if this is the case? Where is the money being made then if it is only a 6% to 7% return with all the risk and hassle attached it seems crazy anyone would even bother. Interesting.

Brent

Hi Joel,

I would love to see how you how you model your growth patterns. It would be great insight.

Thank you for your help.

Hi Jon,

Thanks for the insight. I think maybe a bit confused on the Cash on Cash part or when I mentioned returns of 18% to 20%. So on your $1,000,000 example Cap at 10% is $100,000 a year. $6,830.95 a year goes to loan. It's paying of the principal in 12 years and will have an appreciating asset of a million in todays dollars pus some. Plus the difference between the loan and Cap leaves monthly income.

I'll try to put these numbers into excel and see if I can better understand. I need to get on top of what each term exactly means in real estate I think. This 50% rule isn't it included in the CAP, or that's after?

Thank you very much for taking the time.