All Forum Posts by: Lawrence Robinson

Welcome to BP, Angela Fitch. I can't emphasize enough the importance of learning all you can while concurrently applying your new found skills. I also strongly suggest attending local REI meetings to see what successful investors are doing in your area. Surround yourself with the right professionals and you will be off to a better start than most. Wishing you a happy and prosperous 2016!

Hi Sherry Martin, you may want to compare the numbers using BP's Rental Property Calculator versus the House Flipping Calculator. There are some great tools right here on the site that can significantly enhance your decision making process. Best wishes!

Welcome to BP, Julie Rossman. I love the way you segued your personal narrative into your RE background. It's not very often that members share their true passion for life, i.e. the driving force behind their work. I am certain you will find this community beautifully complements your experience and education. Best wishes in 2016 and beyond!

Fernando Angelucci, are you looking for warehouses and self-storage facilities all over the state or just in Indianapolis? I'm currently negotiating purchase of a 60,000+ sqft warehouse, but I would certainly entertain wholesaling it to you although my original plan was to acquire it and lease it out.

One of the worse things you can do as a wholesaler starting out is put a lot of time and effort into negotiating a listed property only to have other buyers purchase it right from under you, at your negotiated price, because you have neither the funds nor buyers in place to acquire it. Once your offer falls through, you're completely out of the equation. Also, be up-front with your realtor because they will drop you like a hot potato once they learn you can't close deals. By the way, great advice from everyone above.

Not that your seller is a slum lord, but have you considered that there may be rehab requirements which could very well be the source of contention between the seller and his  tenants? Also, any purchase close to retail leaves a very small margin of error for unknowns. Finally, I would get it inspected before even considering any offer at all. The basis for your offer should obviously take into consideration occupancy as well as any necessary rehab work and, of course, management fees. Good luck!

Welcome to BP, Steven Lin. I suggest you read the blogs in the Education drop-down and also listen to related podcasts. You will find answers to all of your questions there. Happy investing!

Bob, it seems you aren't familiar with commercial RE transactions. I never said the 2 were the same. A capitalization (cap) rate is used to express commercial valuations and, given that the discussion here is about a multi-unit residential property within the context of the true ARV of the property in question, specific to Jean G.'s  blog entry regarding whether he should continue or run from this deal, I think you are slightly off base here. My response to this post is purely to provoke thoughts about things that may have been overlooked.

Hello Bob Bowling. You calculate cap rate simply by dividing the net operation income (NOI) by purchase price. Of course, any rehab costs go into the NOI calculation. If you get the ARV wrong, the entire transaction could potentially be a losing proposition. Many new investors are overly optimistic with ARVs.

Welcome to BP, Mr. Andrew Spencer. Best wishes in 2016!