All Forum Posts by: Russell Tidaback

@Karen Schimpf , 

I agree... Houston, Dallas/Fort Worth, Atlanta, Seattle and Austin are in our top 20 MF prospecting areas.

As for for commercial space, The cities the report states having "Better" STEM pay rank appears to be accurate as well... Washington DC, Seattle , Northern NJ and so on.

Logically, the more you make the more you spend!

We all start as Newbies! BiggerPockets was built on this ideology... Pass forward what you learn to help the next person! It is great to hear people trying and striving to get out of the rat race and pursue their dreams of financial stability. Don't stop and keep learning and sharing! It is a big but very small world out there! I hope one day we get to meet across a closing table.

I think your signature quote is a true statement, "Today is the best day to invest in your future!" For tomorrow to be brighter you have to invest in yourself today!

Good luck and have a great Labor day weekend!

@Dawn Oree , You go for it! Congrats and don't let anyone hold you back! The ole' sayin' "Go big or Go home"..."big" to one person is not the same for another.  I am glad to see you too the leap of faith and are making your future brighter every day. Take a deep breath, keep pushing forward and it will all work out!

Congrats again and keep us informed!

Justin,

Did you discuss these questions with your PML? If the terms are beneficial/profitable/fair to both parties then those are the terms you should go with.  Without know what the property financials are or what terms are being offered there really isn't a yes/no or right/left answer to give you.

post an overview and you'll get more responses than you'll probably care about!

@Matt Crow, Depends on the PML, the terms, etc.  If it fits your numbers and needs then yes. 

http://www.biggerpockets.com/renewsblog/2014/10/20/your-complete-guide-to-analyzing-a-property-in-just-10-minutes/

@Mike Campbell

oh WTH...just for fun. As you know each person has their own method for validating an offer/purchase price. Look at them all but find one that works for you is the best advice I can give you on this subject.

*USING THE INFO GIVEN* use this for example only as there are various methods to come up with a offer/purchase price.

21 units total gross yearly income 201,600, 5% Vacancy, Expenses PM 10% of gross, Taxes 32k year, Insurance 16k year, maintenance 10 % of gross, Common area utilities 1,500 yr:

(INCOME - EXPENSES = NOI) 201,600 - 99,900 = 101,700

NOI * CAP RATE 10% = 1,017,000 (strike point)

(strike point - 10% = offer) 1,017,000 - 101,700 = 915,300

Matt,

It's great your thinking traditionally! Now, think outside the box... find a PML/HML to assist you with this acquisition. If it is profitable, people want in! Message me...we can share ideas.

Possibly a Personal note through an/the property LLC for the DP? Think outside the box and I agree with Jeff. Treat your commercial banker as a partner, treat their money like your money. Prove that the numbers make sense and will work for them!

If you come across something your not interested in please let me know.