All Forum Posts by: Jessica Miller

Are there any real estate seminars out there that aren't a scam and are actually worth the money?

My husband and I are part-time real estate investors. We've owned residential real estate for the last 10 years, but just recently closed on an 18-unit building to bring our current units up to 27 units. We're hoping to expand and grow more rapidly in the next few years. I'm just wondering what associations similarly situated investors are involved with or have found helpful, and if there are well-known conferences that are valuable for us to look into attending.

Thanks.

Jess Miller

Basics of the deal:

Asking $750,000 with seller to owner finance with $25,000 deposit

Gross income - $111,000

Taxes - will be 3.7% of actual sales price

Insurance - $7,000

Utilities are $7500

Assuming 5% vacancy rate and 10% repairs (property has had recent maintenance work and new roof and parking lot and nothing that appears imminent)

Assuming 7% property management (which is average for our area) although we will self-manage at first although I know that we need to consider it in our analysis

The numbers don't work at their asking price.

We'd like to offer $625,000 at 6.5% interest for 30 years, balloon after 20 years

The cash on cash return without the property management is 27% but with the property management, there is potential for negative cash flow in years with high vacancy and repairs. We would really like to get into this deal because they are willing to owner finance 100%, we need very little down payment (much less than a bank would require), and we would have a fixed rate for 20 years, whereas our current portfolio lender will only fix for 5 years. For all of these reasons, and because we see this as our way into a larger property which we may not get otherwise without a seller willing to owner finance, we really want to make this work, but without being stupid.

My husband and I are not looking for cash flow to replace our income. We both have full time jobs and will continue to work. Our property investments (we currently have 11 units) have always been with the intent that they would be our retirement some day.

Any thoughts or insight would be appreciated.