All Forum Posts by: Jesse Turner

Greetings to all, 

My question is this: Does the 50% rule need to be applied to commercial listings, which state a NOI?Surely, a variety of scenarios exist but generally speaking, if a commercial listing has (accurately) stated the net, it does not make sense to me to deduct 50%

(I've been analyzing deals, bought the BP books and found the BRRRR strategy interesting so I've looked at residential, multi-family and also bigger projects and I'm open to all, if the math works.)

Best.

Everyone is out to make a buck- I get that. And I can understand some of the value that a wholesaler brings to the table. But I'm new to R/E investing and looking at my options for finding deals. This questions is more about the cautions, what to look out for and how someone could get the short end of the stick. Thanks for your advice. 

I've been reading the the BP book, Rental Property Investing, to get a good grasp on things before I jump in and the 'forced appreciation' was something that was vague (only halfway through the book). But I think this thread is mixing terms. I would agree with @mark  and @Thomas S. Your goal is to get a great deal going into it (70-80% of ARV) as mentioned here. So you have 30-20% in repairs and curb appeal, accordingly. But the 10% 'forced appreciation' is finding an opportunity- an undervalued and/or mismanaged property that can be capitalized with increased cash flow.

Well, like most on here, I consider myself the most ambitious person. I've acquired an excellent skill set over the years that makes this a great opportunity. MBA, business broker, real estate licensed and marketing professional- but I have always had an internal fire for entrepreneurship that I have not landed yet... Here I AM.