All Forum Posts by: Jeff M.

Thank you, Bill and CK. This is a case of cold feet. It is a best and highest offer situation and I will be submitting what works for the deal and no more. If I get it, great. If I lose it, there are other deals. To answer some of your questions, I know my market, rent prospects are solid, repair costs are conservative and ROI is plus 15%. I also have a 10 inspection period. Thanks again.

Hello BP Friends:

I seem to have lost objectivity.  Or perhaps I am just getting the jitters.  I found a deal.  A house worth $150,000, selling for $115,000 but it needs $20,000 in repairs.  It meets my criteria of location, construction quality, etc.  Terms are good.  If I buy it for $115,000, put in $20,000, I will be in to it for $135,000 and it will be worth $150,000.   I am a buy and hold investor.  It will cash flow.  Opinions?  Would you take this deal?   It feels classic Millionaire Real Estate Investor formula but now that I am staring it in the face, I am having indecision.  Thanks.

This is my first posted question!  I've been a member for a couple weeks and am loving this place.  But I am confused.  I just listened to the Podcast with Jay Papazan (Millionaire Real Estate Investor).  He spoke about the value of Net Worth.  Unless I am missing something, none of the standard investment evaluation tools we use care much about Net Worth.  For example, Cash on Cash does not care what goes to principle and Cap Rate does not care about financing at all.  Do any of our standard measures consider what goes to principle?  It seems to me that if I am putting $300 or $1000 per month towards principle, and my tenant is paying it, that it counts for something, right?  So where do we count it?  THANKS!