All Forum Posts by: Harry Wilson

I have heard in various podcast episodes about how the speakers started a fund and would go to events to raise money. Is there anywhere I can learn more about this? I am looking to set something like this up and wondering how to go about doing it, ( I am also based in the UK but there is even less info here so I will start by learning the US way)

Thanks

Hi there, does anyone here own rentals in the UK? I'm coming back to England and plan on acquiring rental properties.

http://streeteasy.com/building/137-west-142-street-manhattan/2c

what do you think it would cost to gut renovate this entire floorplan?

After reading into this strategy, I am starting to like it. So I've been thinking of trying a low cost campaign to do what happens. 

Posting up in laundromats, posting in houses I have seen looking out of shape, then from there I'll look into a list service.

So I know the advantage is no broker, motivated sellers.

But what are some disadvantages, or things I should take into consideration.

Now here's the part where I'm clueless. Let's say everything goes smooth and I get a call from a motivated seller. How do I determine the value? Myself using comps? Do you hire an inspector and appraiser before making an offer? It seems expensive to be doing this a lot.

Or do you just tell them up front 'I'll buy it at 20%' discount all cash.

Or is it more of a mix, you lowball a worst case and offer that.

Any experienced or knowledgeable direct mail users I would love your 2 cents on this.

I guess it would be similar to mobile home parks

yes the whole system wasn't not working so they fixed the radiators, electrical system, serviced the boiler, added water feeders.

I told them to have everything running well so I have no more problems without the boiler.

They left without cleaning the pipes, or a safety cut off.

The clogged pipes caused pressure to build and the boiler cracked. 

yeah so did I, 

the down payment is something that is garuanteed to happen over time so i dont see why people dont calculate it often

the fluctuation in the houses value may slightly affect the numbers, but if you're making a big descision, surely you want to know the all upside

I've been analyzing lots of deals lately and the main thing I'm focused on is cash flow, for example I find a deal that is cash on cash of 13% and say to myself that its better than the stock market etc.

however when you add the debt pay down into the equation, the net benefit is increased dramatically, 

here is a calculation I did, no crazy expectations, everything increasing at 2.5% annually.

after a year I cashflow $2,850 however I've also gained 2,124 in equity, totaling 4,974. 

so in reality my actual return is much greater 12.20% cash on cash - 

(2124 equity after a year and as a percentage of the 22250 paid = 9.54%

9.54% + 12.20% = 21.7% 

so really I am making a 20% return on my investment.

why doesn't everyone do this calculation? am I missing something?

thanks

turns out i only added town tax and not city tax aslo

I also added in 5% for cap ex and 5% for vacancy 5% for repairs and maintenance.

cash flow is now quite low, however in the next calculation, I lowered the offer price to 57k which makes it a bit better, is 12% cash on cash a good investment in your eyes?

hi there, I was just wondering, when you do direct mail to find properties 20-30% below market value. once you find a deal, do you use an agent? and if so what for?