All Forum Posts by: Jack Lee

I was talking to a local investor recently and he mentioned that he gives $50 once in a while to his tenants that pay on time. He was clear that this was random and that tenants don't have to "buy a ticket" to enter this random drawing. Tenants are entered into this random drawing simply for paying rent on time. I was just wondering if this is legal because a lot of states have strict lottery/raffle laws.

Thanks

Wow that's a beautiful property. Thanks for the color on cost. 

Thanks, that's helpful and I'll definitely get an engineer to give me an assessment. It'd be great to get a ball park estimate of how much I should expect to pay to solve this issue. Directionally, is it closer to $3000.... or something much like like $30000?

Hi I'm looking into purchasing a property and was wondering how much it would cost to repair a sagging porch. This is in a historical district so I have to restore the porch to original standards. 

See below for a picture of the house front:

Any thoughts on how much this would take and what is causing the sag? 

I would be very interested!

Thanks for the replies. Interesting Stuff, especially the derived cap rate.

I was curious because the company I worked for was started by bankers and actually did a lot of DCF for valuations. A lot of software also did DCF analysis so I was curious how they got the discount rates.

This stuff is probably not necessary for small properties. Commercial investors may like to see more detailed analysis like this.

Hey guys,

I have a question regarding DCF analysis. I have previous experience in finance but I am not sure what to do with discount rates on real estate investments. In finance, you can calculate the cost of equity using CAPM and cost of debt by looking at bond yields because there is such a highly analyzed public market.

What can we assume about real estate investment discount rates?

J Scott Who would this person be? Would a local handyman you have a relationship with count?

Joel Owens Under 100k. What are the options? What if it is over 100k? I am aware that if the property is above 60-70 units, it can be automated with a hired property manager for cheap.

Hey guys,

I was wondering if there is a passive investing guide out there for rentals. I have not found a solid guide on BP on how to invest passively if you simply cannot make weekly or monthly trips to rentals unless in times of extreme emergencies. A few reasons might be:

1. personal preference.
2. Job requires frequent travel
3. Job requires 70-90 hrs/week

What are the most important steps to passive investing? Selecting a property management company that tries to keep costs down? A friendly realtor to lease your house when there is turn over?

Thank you for your thought out reply. I really appreciated it.