All Forum Posts by: Willis Seng

do you guys do all these estimations before you purchase the property or after?

Are there any downside of buying a fixer upper with all cash? Nowadays, houses are taking longer to sell than usual, so buying houses with all cash could avoid any mortgage to pay off every month that the house doesnt sell. If a person does not have enough cash, is it better to put down the largest down payment possible to minimize monthly mortgage?

By commercial property, would an apartment be considered a commercial property? I know some people consider 4 or more units a commercial property since income determines value. If not, does an apartment have the same benefits as a shopping center, not considering the tenant's length of stay.

I was listening to carlton sheets the other day and he was talking about getting numbers on a property. He said when offering on a property contingent upon 1040 tax form schedule-E, which is the tax filed by the owner on a property, you can see the true numbers. When an owner files this tax form to the government, he or she will try and inflate the expenses and lower the NOI. I just think that alot of income statements provided by an owner is very inflated. Just wondering if anyone tried this?

whats cap rate? is it important? whats a good percentage?

how much do you estimate for repairs? I know repair costs are a bit lower with commercial properties because tenants are more willing to repair out of their own pockets just because it's their business and they want to make it look better. And according to the income statement given from the property management, rent increases are about 150-200 dollars in about 8 months. Hopefully this income statement isnt too overly inflated.

Hi, I need help analyzing this shopping center.

5 unit Shopping strip

Agreement price: $1,100,000 (negociated and agreed upon)
Down payment 20%: $220,000
880,000 30yr @ 7%: $5,854.66/mo

5967 sq. feet

Operating Expense: 1243.11/mo
Property Tax: 1754.56/mo
Other Expense: 183.02/mo
Total: 3180.69/mo

Gross Rent: 11,309.73/mo
Property mgmt: 3%

Net Operating Income: $94,622/yr

Income statement provided by property management company.
Does a property management company provide accurate income statements?

Anyways, what do you guys think about this deal?

What are some legitimate websites for foreclosures. Ive tried numerous websites to look for foreclosures, such as realtytrac, and all I got was a list of stale and outdated listings. Are there any .gov websites that provide a list of foreclosures?

How old were you guys when you made your first investment?

How long do you guys think this downfall will start going back up? I plan to make my first investment in a year or two, just because I dont have money and im still in school.