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All Forum Posts by: Erick Pena

Erick Pena has started 3 posts and replied 10 times.

Post: 71 unit success!

Erick Pena
Posted
  • New to Real Estate
  • Denver, CO
  • Posts 10
  • Votes 4

Congrats Nate!

Post: BRRRR in Jackson MS

Erick Pena
Posted
  • New to Real Estate
  • Denver, CO
  • Posts 10
  • Votes 4

Hello to all!

I am looking for people that have experience in the Jackson MS market. I’m looking for a GC and a reliable agent to get introduced into the market for potential opportunities. Also just any sort of advice or personal experience in that market area.

Post: Advice Needed: Identifying "Good Deals" in Real Estate Investing

Erick Pena
Posted
  • New to Real Estate
  • Denver, CO
  • Posts 10
  • Votes 4
Quote from @Nathan Gesner:
Quote from @Erick Pena:

A "good" rental property is one that covers all expenses (mortgage, taxes, insurance, maintenance, property management fees, and any other costs) and still leave a surplus (commonly referred to as cash flow).

  • Calculate cash flow as: Cash Flow = Rental Income − Operating Expenses − Debt

There's much more to it, but that's the basic idea. Some properties actually lose money each month but gain value through appreciation. For example, a property in San Diego may lose $500 per month ($6,000 per year) but gain $60,000 per year in value, making it worthwhile to "lose" money each month in exchange for long-term gains.

I recommend you start with BiggerPockets Ultimate Beginners Guide (free). It will familiarize you with the basic terminology and benefits. Then you can read a more in-depth book like The Book On Rental Property Investing by Brandon Turner or The Unofficial Guide to Real Estate Investing by Spencer Strauss.

You need to get a firm grasp on two things: the ways to make money with real estate, and how to find deals that match your goals.

P.S. David Greene is preparing to publish a new book, "Better Than Cash Flow: The Ten Ways You Make Money In Real Estate"


     Thanks! I'll look into that material more! Things are starting to make more sense to me the more I'm reading up on it.

    Post: Advice Needed: Identifying "Good Deals" in Real Estate Investing

    Erick Pena
    Posted
    • New to Real Estate
    • Denver, CO
    • Posts 10
    • Votes 4
    Quote from @Hunter Purnell:

    Everyone has a different idea of what a good deal is. For me, I care mostly about CoC (cash on cash return) and overall ROI (return on investment). I like 15% CoC and 30% ROI. Those numbers aren't easy to find, especially right now. I would say a 10% CoC and 15-20% ROI are reasonable returns. Some people just want to make $100 or $300 or whatever their number is per door. Varies by market and person. I agree with Michael, probably need to make 100 offers per 1 accepted to find a good deal.


     I'm noticing that trend and where I was getting confused with things. Every "good deal" would have to be well below asking to get the figures I would want. 

    Post: Advice Needed: Identifying "Good Deals" in Real Estate Investing

    Erick Pena
    Posted
    • New to Real Estate
    • Denver, CO
    • Posts 10
    • Votes 4
    Quote from @Michael Smythe:

    @Erick Pena who cares what the seller is asking?

    Figure out market rents, deduct expenses to determine NOI, deduct cashflow you want, plug remainder into mortgage calc at current interest rate, then add lender's required down payment.

    That is how much you offer!

    It will almost ALWAYS be below asking price, so you will have to make 10s, if not 100s, of offers to find a motivated seller.

    Then the property will have to pass inspection, appraisal, etc.


     This is great advice! I've been analyzing deals and the price I would need is well below asking for most.

    Post: Excited to Start My Real Estate Investing Journey!

    Erick Pena
    Posted
    • New to Real Estate
    • Denver, CO
    • Posts 10
    • Votes 4
    Quote from @Michael Smythe:

    @Erick Pena please understand that buying rentals is NOT passive income!


     I'm learning that quickly the more I dig into things, thanks for the honesty!

    Post: Excited to Start My Real Estate Investing Journey!

    Erick Pena
    Posted
    • New to Real Estate
    • Denver, CO
    • Posts 10
    • Votes 4
    Quote from @Dominique “Dom“ Leal:

    Hello Erick! Good to see a fresh face around.. how much research have you done on property management?


     I haven't done that much research into it, could you help me out with that?

    Post: Excited to Start My Real Estate Investing Journey!

    Erick Pena
    Posted
    • New to Real Estate
    • Denver, CO
    • Posts 10
    • Votes 4

    Thanks for the quick reply and advice!

    Post: Excited to Start My Real Estate Investing Journey!

    Erick Pena
    Posted
    • New to Real Estate
    • Denver, CO
    • Posts 10
    • Votes 4

    Hello everyone!

    My name is Erick, and I’m thrilled to be starting my journey into real estate investing. I’m originally from Texas but now call Colorado home. The Air Force brought me here, and I’ve stayed ever since—I’ve really come to love it here!

    Outside of real estate, I’m a huge sports fan, so you can usually find me glued to almost every game on the weekends.

    My interest in real estate began as I explored different ways to generate passive income, which ultimately led me to the BiggerPockets community. Like many of you, I started by reading Rich Dad Poor Dad, and from there, I dove into Brandon Turner’s book on real estate investing.

    I’m incredibly excited to embark on this new adventure and can’t wait to see where it leads. Looking forward to learning from all of you and sharing the journey together!

    Cheers,
    Erick

    Post: Advice Needed: Identifying "Good Deals" in Real Estate Investing

    Erick Pena
    Posted
    • New to Real Estate
    • Denver, CO
    • Posts 10
    • Votes 4

    Hi everyone,

    I’m new to real estate investing and just finished reading Brandon’s book on investing with no money down. I’ve found myself particularly interested in multifamily properties, but I’m struggling to grasp what exactly defines a “good deal.”

    When evaluating listings, should I primarily focus on properties that seem undervalued? Are there specific market indicators or property traits I should be paying attention to? I feel like I’m missing the bigger picture of what makes a property a great investment opportunity.

    If anyone could share some pointers or insights on how to identify a “good deal,” I’d really appreciate it!

    Thanks in advance for your help!