All Forum Posts by: Johnny Kula

I'm looking at a Commercial 3 story.  The numbers that were supplied from the selling agent are SOOOOOO bad that I cannot even guestimate what the heck this seller has going on.  It seems to be a ton of fluffing on the incomes and hindering on the expenses.  To the point I might just walk away without even getting any further info.  

Their asking price ($750k) is about $200k-$300k too much in my short calculations, which I cannot even get accurate due to the crap numbers I was given...  Even his pro forma shows all the rents fluffed and all the expenses the same (and unreasonable) as his actual.  

The tenants are a cafe, bar and nightclub, which might not be the best tenants as it is...and who knows if the current owner would even entertain such a low offer as the property is probably worth that cost alone....

Would seasoned investors walk away or try and get more info?

Thanks,

Johnny

@Drew MacDermott thanks for the tip about the fireplace!  I will check it out ASAP!  Also thanks for the notes on the other fees.  I wasn't projecting that high and you are the 2nd person to chime in on that.  

Johnny

I'll ask around tomorrow and Tuesday and see what I can come up with for you.  

Looking to build models for a business plan.  The models I'm trying to figure out are more scientific vs. guestimate.  I was hoping to get some rock solid models from those that have done this for years.

1. Looking for a numbers/business model for single families (local and distant)

2. Looking for a numbers/business model for multi-families 4 or less units (local/distant)

3. Looking for a numbers/business model for larger multi-families, 5+ and apartment buildings (local/distant)

Also, in your opinion, would starting small with smaller down payments be better than just going in bigger for the first couple deals?  I don't want to eff up and blow the first deal and screw myself out of the business....so i'm thinking #1 & 2 first, and because they are residential still so easier to make the initial deals...

Been calculating using the 50% rule, but haven't had much luck working what I think is a deal...Trying the NOI model, but again, having a difficult time getting the numbers right in my head and on paper.

Do the seasoned folks just have a certain criteria, such as, if the NOI is under X, it's a NO GO. Or if the 50% rule is X or better, lets make a deal, etc?

Figuring the numbers out is the toughest part other than figuring out the FMV and where I should be offering...Once I get these models and pricing points down, I have just taken the next level and can start making offers, etc...

Thanks everyone,

Johnny

Chan,

Like Brandon mentioned, what specifically are you looking for?  I have some connections in the area and could ask around as well.  I know there's a house on Woburn Street, right off 495 that the guy leaves a sign out front of his house for tax prep, etc.  It's been there for the past few years, so he must be doing something right.  Otherwise my buddy is an RE attorney and I could ask him if he knows anyone.

Johnny

Sean, welcome!  I'm in a similar boat.  I'm in MA but have a broker in Tampa now (I used to live there years ago).  My buddy and his wife are still there and she's in the business.  I'm trying to work out a model for distant properties and how or what to work, etc.  Property/Rental management will probably be the biggest downfall as they both work full time running their own businesses.  I look forward to hearing how your deals go.  Once I build a model, or if anyone else has a model for this type of market/investment, please pass the word on to us so we can try it down there.

Thanks and look forward to hearing more once you get your feet wet!

Johnny

@Thiago Lima the Greater Lowell Landlord Association meets every 2nd Wednesday.  I'll be there this month to gain info on that aspect.  I heard very good things about it!

Johnny

Hopefully this comes through.

Investors: Should You Get Your Real Estate License?

I'm in the course now and gaining tons of knowledge...I'm also coordinating with a broker so I can help do some investment deals so I can learn on someone else's deals and not make mistakes without being experienced...

Don't want to make a costly mistake without being fully informed on this stuff....just my thoughts.  There's some articles on pros and cons I believe around here somewhere...Some valid points made.

Hope that helps.

Johnny

In my RE License course.  Haven't bought, still debating on exactly what to buy and how much to spend on 1st deal.  Reached out about a couple deals, but either realtors don't want to make money or they are making too much....because a few of them just never got back to me on listings....

There's a MassRealEstate Meeting tuesday in Peabody I'll be trying to get to.  I just downloaded the ABC of real estate investing.  It should be a quick read.  Trying to soak it all in so I don't eff up my first deal ;)