All Forum Posts by: Charles David

Yes I have my License.  I used Rockwell Institute for my hours. I am not actively working as an agent at this time.

Jay, Guy & Bill,  

Thank you for your post.  This is great information and puts my mind at ease.

Charles

I recently acquired my second property.  One of the papers I had to sign at the escrow office was the Statutory Warranty Deed.  It states:

"THE GRANTORS Joe Jones Jr. and Janet Jane Jones, husband and wife for and in consideration of TEN DOLLARS AND OTHER GOOD AND VALUABLE CONSIDERATION in hand paid, conveys and warrants to Charles David an unmarried individual the following described real estate, situated in the County of King, State of Washington."

I had questioned the escrow closing agent about the amount that was entered on the Deed $10 and they told me it was the filing fee.  

It seemed to me that this should have been the sales price $150,000.  

My question:  Is this correct?  If not, why would they change this amount to $10 and not state the sales price?

My real estate agent was not present at the signing he was traveling out of state. So I asked him about this matter a few days later and he said he would check into it.  When he got back to me the next day he said this was in fact not the amount for the filing fee and that it was correct and that is a standard statement escrow companies use on deeds and I didn't have any thing to worry about.

Thank you.

Thanks guys. This is just one unit so I guess Cap Rate is usually used for entire buildings. Plus the HOA including capex items is throwing a wrench in the calculation anyways. Appreciate your inputs. Have a wonderful evening. Charles David (360) 969 5202

Welcome to BP James check out the podcasts. Plus network with others in your area. Enjoy the beach, it's raining in Washington!!

You may try looking in the Allentown PA metro area. Contractors are cheaper in PA, and it's not to far to travel for a bigger job. Good luck.

Can you guys and gals help me check out my CAP rate calculation and tell me if there is any thing I have forgotten? Cap Rate is Net Operating Income divided by Property Cost or Value. Net Operating Income= +Revenue generated - Operating Expenses INCOME is just the Rent $990/month EXPENSES are: HOA fee (WSG). = $240/mo Property TAX. = $88/mo (1056/12) Hazard Insurance. = $ 18/mo (210/12) Maintenance + Repairs = $ 17/mo (600/36) Total Operating Expenses = $ 363 / mo +Revenue generated = $990 / mo - Operating Expenses = $363 / mo Net Operating Income= $627 / mo ANNUAL NOI -- (627 X 12) = $7,524 PROPERTY COST WAS 119,500 7524/119500=0.0629 So the Cap Rate is 6.3% ? Or should I be using the current market value instead of the cost of the property? Thank you. Charles

You could ask a property manager what they would rent it for if they had the listing. Plus you might ask them to come out and take a look at it to see if there were any improvements you could make to make it more attractive to potential renters.

I would list it at market. If you list it lower you will get more undesirable applicants and will have to screen and reject them. Whereas if you list at market there will be less of a chance of someone taking advantage of the situation and you will get more money and have more piece of mind.

Hi Cali here too! Welcome