All Forum Posts by: Jonathan Hardy

@Nicholas Sheridan, Jr.

Congratulations!!! Can't wait to join the club myself.

@Brandon Turner

From what I've seen in my area the local municipality can absolutely force you to convert a duplex back to an SFR if the work was done without a permit. Id imagine this varies depending on where you're located.

I could put you in contact with an experienced architect in the Chicago area if you'd like a more in-depth explanation on the topic specific to my area.

Good luck on the book. Can't wait to read!

@Nathaniel Green

Hi Nathaniel,

My wife and I are currently taking care of personal finances. (Budgeting, Saving, Eliminating Debt etc). We may be on the slow track, for now, but we're looking to invest in our 1st Multi-family at the end of 2020. I'll shoot you a pm!

@Cody Wacura

Hi Cody,

I'm also investing in Chicago! Wishing you luck in your future investments. I wish I was in a position to offer advice, but I'm in a similar position in my REI journey. May I ask what you've read so far?

@Justin Greenwood

Hi Justin,

How are things going for you these days? I recently finished Gallinellis book and I'm hoping to hear that a year later you still feel that you got your money worth!

Jon

@Randy Coker

Congrats!!!

@Jason C.

Congrats!!!

@Jon Reed

Thanks Jon,

That's great info. If I understood what you're saying, an in-depth analysis happens once I have a property under contract. I should also write a contingency in the contract so that I can safely back out or renegotiate if I don't like the numbers I'm getting.

I'll definitely be figuring out what "rough numbers" make sense in my area for an initial analysis.

@Jon Reed

Jon, that's awesome. I'm currently reading up on REI Analysis and I have so many questions. I imagine that running all the numbers is the best way to secure a good investment.

• How do you typically go about getting the information you need to to accurately find a properties Net Operating Income? (i.e leases, expense, etc)?

• At what point of the buying process do you ask for this information?

• Do you ask for documents like P&Ls, leases and bill statements in your letter of intent or at some other time?

• I imagine it's normal to request information like this from Commercial properties. Is it typical to ask for this info forsmaller 2-4 unit properties?

• I imagine it's also normal to ask an agent for capitalization rates on commercial real estate. Is the same true for smaller properties?

I hope I haven't battered you with too many questions, lol. The more I read up on the subject, the more questions I come up with.

Hi Everyone,

I have a question about capitalization rates. I'm think I'm comfortable with calculating the Cap rate for a single multi-family property:

Cap Rate = Net Operating Income / Value

What is the best ways to determine the Cap rate of a particular market? Do investors typically ask a real estate agent or broker for this information, or is there a way I can get this information on my own? 

Thanks!

Jon