All Forum Posts by: Jonathan Robinson

I am investing in Charlotte, NC, within the 3-10 unit range. I know it is important to understand the micro market before pitching to investors. In the neighborhood of Montclair south, things look good, I know that from living in the area for my whole life I just am ready to zone in on a solid platform for providing that kind of information to my investors so they aren't having to adjust to the format of each report they receive. I want them to understand the story behind the market with ease.

My question to you. What information is needed to include in a market analysis? What do the investors I am pitching this to want to see in the analysis that will best help them understand the story of the area? Where can I find this information the easiest? And what information is just mélange in the investors eyes?

Any and all comments and replies are encouraged and greatly appreciated.

Thank you!

Jonathan Robinson.

My brother and I are starting a property management/investment company. I have grown up on the business side. My brother, Jamie, grew up on the analytical side. As a kid I started creating little business' for fun to make money after school, taking after my dad. Even got to the point where I had all my friends working for me. Jamie did math equations. Recently I saw the two of us sitting on a couch in our apartment and I wondered why we weren't just doing it. That's what I had done before as a kid, just done it. So I jumped on my computer, found a property that was good and required little demand from our shrunken wallets, then set up an appointment to see it. I told Jamie the night before we were going to go. That way he wouldn't have a choice. Well, the property was great. He came back home with all the information he needed to make his analysis of the property. Figure out rent potential and run numbers for hours (as he loves to do).

I made the connection, made it happen, and now I am waiting on his approval of the property before we move to the next step.

My question, as I sit on the couch once again, is what can I, as the business man do, to make sure my stake in this is well earned. I understand I can help him collect data, I am. He is giving me spreadsheets with information to figure out. All he is really doing is taking what I give him and running the numbers and analyzing profit through scenarios.

I am not giving him the credit he deserves for how miniscule I made his job sound. My question is from this being our first property, what can I do starting today to make sure I contribute on my end and make my end of the business a success? I'd like to hear things from today to ten years out. Things such as strategy, flow, growth speed, managerial styles, agenda, priorities and communication between the two of us.

It will be a success. I know that. I just want to make sure I am 100% confident when I approach my part of the job. I already feel 100% confident, its just time to broaden my knowledge and open myself up to new things.

Im not 13 anymore, and this isn't a small boat cleaning business.

thank you all for the information. It is helping a lot and hearing all the different points of views is very interesting. Interpretation is always varied and molding ones interpretation of something is best done by gaining a 360 Ariel view of the subject at hand. Y'all have provided me with that. Though, arguing is counter productive, all responses have been passionate and I'll take answers how chance and reason present them to me.

Let's be kinder?

Thanks!

Ive done some market research. The area, assessed from the last census was down 9% in population, the town overall is actually up. I take that as proof that this neighborhood is of the weaker in town. The reason this doesn't bother me at the moment is that the town just received two grants from the federal government to have the mills in the neighborhood (remember this is an old mill village) assessed and the land cleared off and returned to an operable and appealing state. Since the town overall is growing I was thrilled to here that the Town government had chosen this neighborhood to improve and bring industry back to. They clearly stated they wanted to see industry back in the mill village.

http://gwdtoday.com/main.asp?SectionID=2&SubSectionID=27&ArticleID=20117

That's the link to the info about the grants.

the video someone posted on that was very very helpful. Thank you so much.

she has owned the property since 2001 and the property has an attractive exterior and freshly painted interior featuring hardwoods and ceiling fans in all rooms. I found her on craigslist. Similar houses are going in the area for about the same. Right outside the neighborhood they spike. It's in an old mill village. All of the houses were remodeled in the 50's and are well kept. Neighborhood is nice. She is renting to college students from the local university. I believe that she chose the renters based on their cleanliness. She told me she had a choice and it's easy to rent and that the group she picked was very focused on school and didn't come across as the "partying" type. And by 50 % rule, you are reffering to the payment being 50% of monthly costs. Correct? (I looked it up)

Thanks!!!

I am looking at a property, tax valued at 25,800.

The owner is selling it for 38,000. Owner financing with a interest rate of

3.5%. 2,500 down payment

Me and my business partner have ran the numbers and along with her promise to negotiate length of term and price a little bit, it seems that the property will cash flow well at the 38,000 mark at a 15 year rate.

The things I don't know.

Why would she get rid of the house? If she is owner financing, tells me its paid for, and has told that it is currently rented and has rented well in past, why would she rid of the property.

Why would she force the price so much higher that the tax value(market and assessed are similar to tax value)?

From running the numbers it looks like we will clear 600-650 on rent a month with only 250-300 overall costs per month at 38,000 mark. Its renting now for 550. We think so because of the local universities growth with no increase in on campus residency and her claim of renting higher in past. Plus market rents are set at 778 in the area for the three bedroom. The problem that brings ours down is Size and only one and half bath.

What would you do?

I appreciate any and all comments, the more I can learn about the situation the better.

Thanks

Jonathan Robinson

After so many of you have helped me clarify my motives and define exactly what I should do to safely invest under sub2, I am curious about one more thing before I get started. How in the world do I find sellers? Who exactly am I looking for? and how do I know which neighborhoods are best and which ones to stay away from?

I have many tools I know I can use, whether passive or active advertising, but I am looking for maybe which specific is most effective and how to approach a seller after I have their attention. Also, if I haven't gotten their attention, as one mentor has pointed out to me, I don't want to force them into it, I want them to be 100% on board and confident, so how do I make them feel that way and grab their attention from the first call/open house/ mailing/ or which ever mode of approach I end up going with.

Once again you guys are awesome and have helped so much. I hope my questions are helpin you in some way as well!

Thanks,

Jonathan Edward Robinson ( Charlotte, North Carolina)

And thanks as well @Douglas Dowell

I think that will be my next move.

@Bill Walston