All Forum Posts by: Jonathan Hernandez

Quote from @Jim Pellerin:

Quote from @Jonathan Hernandez:

Quote from @Monte Riding:

Quote from @Jim Pellerin:

You can do your own virtual underwriting by using the following "guess" method:

1. What's the asking price?

2. What are the typical rents for the area? Determine the gross rents for the property

3. Estimate the expenses based on the age and condition of the property. Use 40% to 60% of gross rents.

4. Calculate the estimated NOI. Gross rents minus estimated expenses.

5. Use the NOI and asking price to calculate the estimated Cap Rate.

6. If the Cap Rate is close to the market Cap Rate for the area, and you are ok with it, ask for the T12s and RR and all information about the property.

But I wouldn't worry about asking for detailed financials all the time. There shouldn't be that many coming your way.

@Jim Pellerin  Can you expound on number 6 a bit? Specifically…. what are the T12s and RR?

thx :)

Yes, can you please elaborate a bit. Thanks!

Oh sorry. And I hate it when people use acronyms.

T12s are the trailing 12 months of financials. Income and expenses.

RR are the rent rolls of the existing renters, their rent amounts and dates of the leases. 

Thanks for the clarification. I assumed RR was the rent rolls but just wanted to make sure I was on the right page. 
The formula you spell out for "guess" method virtual underwriting is extremely helpful. Thanks!

Quote from @Aidan Richard Connly:

Hello BP! I am an investor looking to build a multifamily investing team in North Carolina! Please feel free to reach out if you are interested as well!

Sent you a PM!

Quote from @Monte Riding:

Quote from @Jim Pellerin:

You can do your own virtual underwriting by using the following "guess" method:

1. What's the asking price?

2. What are the typical rents for the area? Determine the gross rents for the property

3. Estimate the expenses based on the age and condition of the property. Use 40% to 60% of gross rents.

4. Calculate the estimated NOI. Gross rents minus estimated expenses.

5. Use the NOI and asking price to calculate the estimated Cap Rate.

6. If the Cap Rate is close to the market Cap Rate for the area, and you are ok with it, ask for the T12s and RR and all information about the property.

But I wouldn't worry about asking for detailed financials all the time. There shouldn't be that many coming your way.

@Jim Pellerin  Can you expound on number 6 a bit? Specifically…. what are the T12s and RR?

thx :)

Yes, can you please elaborate a bit. Thanks!

@Brian Adams 

Thanks for sharing your story. 

I was literally just watching a YouTube video from Robert kiyosaki and he was talking about why "Rich Dad" didn't invest in his wallet business, it was because if he wasn't able to sell wallets then his business would be in dire straights. His wallet business was not organized correctly. 

He went on to say a properly structured business has multiple revenue streams. These larger multifamily units are very intriguing to me based on this information. 

I have the opportunity to invest in a 16 unit multifamily dwelling in one of your markets as a matter of fact. So, the information you have shared is very inspiring and motivating to me even though this is a new arena for me, especially the information regarding streams of revenue and JVing with others who are more experienced in tackling a deal like this.

Thanks for the feedback! How do you guys track the notes and information on each number called? I know you can put the motivated sellers into your CRM but how do you track the numbers your calling and make notes for each number so you know how to progress from there? Thanks!

Key Realty School is the best! I went with another school because it was cheaper and the quality of the program was very poor so in the end I had to pay more for extra courses I did through key realty school and they really helped me understand the material very quickly too. Best program around and excellent quality education.

I got a list of 4,000 leads and would like to know if there is a system out there to help with cold calling this list. I have been calling, however, it seems that there should be a better and quicker way to effectively get this done. any input is greatly appreciated, Thanks!

@Matthew Irish-Jones this property was on market but about an hour ago the seller backed out and decided to flip it himself. 

I will look into that as well thanks for that info. Looks like I might get the deal under contract by the end of the day.

Thanks for the feedback! 

I don't currently have the buyer because I'm still trying to get the deal under contract. I was told to secure the deal before finding the buyer. I do however have a buyer in mind who flips these type of properties. Also, the offer I sent to the seller is assignable.