All Forum Posts by: Christopher Townsend

ideally,the most common way format in the first example. Your initial cash output will be a negative number or in parenthesis, they mean the same. Next you lay out future cash flows received each year for duration of holding period.

What you need to know is, your initial cost of capital, required rate of return (hurdle rate) and the present value of those future cashflows. As you know, cash today and cash received in the future doesn't equal.

I would also say it's important to understand Net Present Value in tandem with IRR.

The second example will present incorrectly if using excel function because the first years investment will be discounted, presenting a higher IRR.

welcome alex,

Stay connected and get prepared for your first deal. Don't suffer from analysis paralysis.lol.

There are a ton of super savvy and beginner investors here.

Get.connected and stay connected

The property not selling is indicative of the market stating the price is too high based on comps and current.condition. adjust the price and see if the offers start rolling in.

Your if plan A is to sell, a possible exit strategy could be renting the property.

I agree with @Chris seveney with determining capex. I think many investors are conditioned to use the standard 5%-10% but I think investors need to determine the dollar value of cap ex and then calculate the rate.

just sent you a PM

welcome to BP

Would love to connect? You have definitely come to the right place to help with your goals.

I would also caution that it is important to get to know a person before doing a deal. I can personally attest to learning about someone after the ink is dry on the paper. Just make sure that you can quantify the value this person brings to the table and understand how this person operates as far as taking care of business. 

I am also looking for dependable, reliable contractors. I can not count how many contractors I have terminated relationships with because they attempt to get the most money out of one job, quality is poor, attendance is poor or a combination.

The contractors I have come across conduct business as if you work for them instead of the other way around.

Please help me as well.

BP,

Does anyone have contact information for real estate attorneys in Milwaukee? Looking for a new attorney.

Thanks

welcome to BP