All Forum Posts by: Jairo Ortega

@Jose Alvarado I'd start with city-data.com They have a free and easy-to-use interface that shares consistent data between cities. I'm not entirely sure about the multi-family building classification. I always thought it was subjective. I'd like to know if there is a better answer out there.

I know that in the commercial office scene, buildings are rated by the BOMA Building Classification:

https://www.boma.org/BOMA/Research-Resources/Indus...

I' too would like to know if there is a universal classification for multifamily. All I've found so far is the following from a lender:

http://www.crefcoa.com/property-classifications.ht...

Welcome to BP! What kind of engine background do you have?

I agree with @Jarrell D.  there is no real easy way to estimate projects. The best you can do is flip and learn from experience. At the end of the day it’s all about material, labor and profit. The material cost is for the most part easy to understand.  It’s knowing what the going rate labor is and how big of crew you need for a task and how long it takes to do the work that informs your labor cost. Add up the material and labor cost and add 20-30% for overhead and profit.

When interviewing contractors, I always ask, “how many guys do you need for this job?”. “How long is this job going to take?”  This gives me an idea for the labor cost. From there I  can subtract the material cost and find out what kind of margin they are working with .

Some other things to consider, larger companies will have larger overhead. Smarter contractors will find materials way cheaper than you will. Especially for commodities like drywall, concrete, wood, paint etc. Some specialized trades also require special equipment to get the job done, so add that to the cost. (Concrete pumps, scaffolding, cranes, bobcats, excavators, etc)

I hope this helps. 

Is this meetup still on for today? Same venue? Same time?

To be honest, I'm not entirely sure if this combination is allowed. I'd like to hear from other and see if they have any experience.

@Heath Ryans thanks for the quick response. So to be clear there is typically no relationship between equity in property and equity split?

I’m trying to sort out some finance nomenclature and how it relates in partnerships.

I understand that in a typical capital stack, when financing a property, you’ve got debt and equity.

For example, if you get an 80% LTV loan for a property that you buy at $100k, your debt is $80k and your equity required is $20k.

But, what if you get a partner? If the partner brings in $10k, does that give him or her a 50% equity position? What if I’m the one bringing the debt financing (the recourse is on me)? Does that give the partner a 10% equity position instead? That’s a big difference for putting in the same money. I’m just wondering how the industry recognizes these contributions from partners.

Also, does this % equity determine how profits and losses are split in a project?

I’ll be following this post. I’d like to hear what others have to say. I feel like Maywood, like Englewood, is due for some change. I think it’s a matter of political influence and of course private capital. 

@Victor Mays keep us updated on your progress 

I'm not familiar with those two companies. I'd call around and see what your local banks and others have to offer. The largest variable between lenders is the LTV. Some will do 75% LTV others will do 90% LTV. Some will increase their LTV if you open other accounts with them (checking, savings, etc.)

Also take a look at the Cash Flow Index method for paying off debt. It changed my perspective of debt and how to prioritize pay off.

https://www.huffpost.com/entry/rocket-scientist-in...

https://5dayweekend.com/keep-more-money/how-to-use...