All Forum Posts by: Kelvin Hamilton

You are a patient Master J... the simple man now gets it completely :).

The NVP is determined by what you can do with your money to make it grow on an interest type basis.  So say I can make my money grow by 20% today, I should use the 20% to do my analysis to know what my money is worth in the future right?  Then I can confirm if I have a good deal or not over a period of time.

A method I have not used before, but one I will be using now as part of my analysis.  I guess there is a rule by thumb figure though that one should work to though... is it 10%, 15%, 20%?  Or is it purely unto the individual making the deal to decide what is worth the risk?

Thanks J

I'm getting there...

$800 x 12 x 10 = $96,000

$800 x 5 = $4,000

So my slight confusion is the 12% figure you showed in the table above the $77k?

Sorry if I'm acting alittle simple... I just need to be completely clear on the maths. But to be truthful, I have not managed to reread as yet in depth, so maybe It will all make sense.

I'm always like this when I discover new ideas.

I'm totally green right now :/

Thanks for your patience.

Originally posted by @Wendell De Guzman:

Originally posted by @Kelvin Hamilton:

One question I missed asking... Those who would not put down EMD, would you be willing to sell your property on that basis? I know I wouldn't, and I'm just a "newbie"

Kelvin, you got it right!

This is called the Golden Rule - do unto others what you want others to do unto you. If you're not willing to sell a property with no EMD, why will you want the seller to sell to you without an EMD (and tie up his property)?

Of course in real estate, everything is negotiable. One way around the EMD problem (and this applies only to properties that are NOT listed on the MLS) is to do a non-exclusive option to purchase. You put down minimal option consideration ($1, $10, $100 - I tried all 3). Then you market the property but if the seller finds a buyer first before you do, the seller does not owe you anything. If you find a buyer first, you exercise your option, you sign a purchase & sale agreement, put down a sizable EMD which could come from your buyer and you close the deal when your buyer closes the deal. Win-win-win.

 Wendell,

I like this way of thinking... I will look to try this on my first wholesale deal, unless someone comes up with a better plan :).

Appreciated.Kelvin

One question I missed asking... Those who would not put down EMD, would you be willing to sell your property on that basis? I know I wouldn't, and I'm just a "newbie"

Great topic and discussion.  Being a "Newbie" who wants to try wholesaling, this is exactly what I need to read and gauge the path that works best.  I believe in a 'win-win' scenario, so putting money down should not be an issue if I see a great deal... I need to know that I can follow through and make it happen.

I'll keep reading to learn more.

Thanks to all of you who have participated so far.

Thanks J for providing this post... this all new to me, so I will read through again as I need to get my mind around the 12% and 4.86% scenario... but I will get there :)  Typically what I did was say $77k x 12% ut it came to $9250... $9600 was 12.5% over 10yrs, hence why I conclude I have to reread and understand the concept better.

I'm a novice so I aim to soak up the knowledge and move forward well armed with tools for success.

Again thanks for sharing.

Kelvin

thanks so much Paul for the "heads up", I will checkout what you have suggested.

Best regards

Hello to everyone, I'm new to the forum and I'm excited to know that I am now surrounded by many motivated real estate investors who are keen to get ahead. I hope to learn and be mentored by you and grow my business so that I too can mentor others. My hope is to gain a better understanding in putting numbers together to know whether the deal I'm looking at is viable or not. I am particularly interested in retail and office space, and understanding the $/sf numbers and what the YP should be. My aim is to find old properties to demolish and build... Properties whose zoning lends itself to commercial as well as residential. As an architect, I hope to build on my current skill set and would be more than happy to assist you in answering questions relating to buildings and its potential for changes and/or refurb opportunities.