All Forum Posts by: Corey Woodruff

did you understand all of that? make sure you have a solid grip on that info before you dive into real estate. Read the book on rental property investing by @Brandon Turner I think that is the title anyway.. that book is what got me started and it did right by me thats for sure. well written book that is packed full of info you cant invest without. 

god luck

are the hoa fees 180 a year or month? if they are a year then your getting a 5 % cash on cash ROI and cap rate of 8%.. cash flow looks good at 143 a month after expenses if the hoa fees are 180 a month

FINDING PURCHASE PRICE:

You will find houses in the same general area of the house you plan on purchasing, and try to match them up as closely as possible to the house you plan to buy example: 3 bedrooms 2 bath 1300 square feet, kitchen similar. so if 5 houses in your area that are similar to the one you are buying are selling and have been sold at $175,000 and the one you are buying is 199,000 then that means you might be overpaying for that house in that particular area. you can find the prices of homes in your area by going on zillow realtor.com and by asking your local realtor. 

RENT EXPENSES:

50% RULE: general rule of thumb rule that investors use saying that 50% of your total monthly rent will go towards expenses and should not be counted as monthly cash flow( monthly profit)

EXAMPLE: $2000 RENT = $1000 IN EXPENSES

2% RULE: general rule of thumb rule that investors use saying that your monthly rent price should be 2% or more of your total purchase price(DISCLAIMER: this is a much harder rule to fulfill in certain areas and you should not buy or not buy a house based off from either of these two rules. they are just rules of thumb for guidance.) EXAMPLE : buying a house 200,000 your monthly rent should be 2% of 200,000 which is 2000 a month in rent 

CASH FLOW: This is your monthly profit AFTER expenses, mortgage, insurance and all other expenses are paid. 

EXAMPLE:

Rent: $2000

Expenses:

Mortgage $550

maintance, insurance, vacancy, cap ex, etc. (50%rule) $1000

TOTAL CASH FLOW(PROFIT) MONTHLY: $450 A MONTH

HOPE THIS HELPS 

good luck 

let me know how it works out

I would reccomend yourself to investors on BP to go and give estimates free of charge to houses they are thinking of buying.

So im willing to come to a potential investment property to give you a good idea of what rehab cost will be for you. and when you get the job do a good job finish when you say you will and hold firm to the price you quoted. Dealing with contractors is one of the most stressful things for a flipper mainly because finding good ones is very difficult because of inconsistencies. 

Hope this helps @Eduardo Linan

how long do you think the investors money will be tied up for ?? 6 months? a year?

make sure you put at least 50% of rental income every month away for expenses and maintance because you will have expenses like cap ex expenses(big cost items) that will need attention eventually and not saving for them could push you down the wrong road in this business and also dont put any faith in the zestimate on zillow. Do your own research by running comps in your market to find the actual retail price of your property. Dont rely on zillow to do your homework cause it could come back to bite you hard. 

Good Luck 

ABC'S OF REAL ESTATE by ken mccelroy READ THIS BOOK! it will fill in a lot of blanks for you

i know this post was posted a while ago. As you probably know saginaw is a weird area so some parts are terrible rental property areas but some are very nice and appreciation does homes well just have to stay out of the 48601 area and 48607 but 48602 03 04 are really nice. Have you bought any properties in the area yet?

Was just wondering how many people in michigan close by to me there are on here I been a member for a while now and am kind of wanting to get a little meetup going to network with some close to home michigan investors. Let me know if any of you guys are interested in bouncing some ideas off of each other and networking close to home...

Corey

the terms of repayment is something that if it was my deal i would draw up terms and present them to investors and wait for counter offers. Most investors who are invested in the stock market are happy with a return higher than what wall street can offer.  But the better deal you make it for them the better chances they will want to invest. One thing i hear a lot that investors dont like is people that over promise. You lay a solid return on the table and a reasonable an smart investor should at least consider it. Present the deal as an opportunity for them and show with numbers and calculations how you plan on executing this opportunity to make it an advantage for them. 

good luck let me know how it works out

@Edward B. very good point search the due on sale clause and DEFINITELY DON'T LET IT STOP YOU FROM MOVING FORWARD!!! well said for sure. 

Good Luck 

Corey 

let us know how it turns out