All Forum Posts by: Mel Sims

Hey BP Fam,

Of course we've all been learning all of the benefits in working with an investor friendly agent. Like us, they invest also and know all of the terminology and what we're looking for and why we're looking for certain types of properties. I also know of an agent who is reallllly involved with the market here. They know of new commercial development, know what neighborhoods will more than likely appreciate over time, know the "hidden gem" areas, etc. However, I don't believe I would call them an "investor friendly" agent only because they don't appear to work with a lot of investors and probably wouldn't know what I'm looking for and why. To me, the main benefit I would probably gain from working with them is the fact how well they know of different areas. 

So...would you work with an agent who is also an investor but doesn't help with finding off market deals, OR work with an agent who has one or two investments, but also know a lot about the market and help in finding off market deals? 

TIA!

Never mix personal accounts with rental accounts. Plus, it'll be easier for your tax purposes for you CPA. 

@Salvatore Lentini Nice of you wanting to give back! I don’t really have a question, but more so just needing to fully understand the numbers and how to work in a competitive market. Also, my biggest hesitation is not know the world of renovation. My goal is to buy my first property this year. I would like to buy something with a 203k loan, however, I don’t know anything about construction to be able to communicate with contractors about what I want done and what types of material I would like.

Hello,

When doing an analysis on the BP calculator and when calculating taxes and insurance, what is the difference of the outcome of inputting the numbers as monthly vs annual?

For example, if I do an analysis and set the taxes/insurance amounts as annual, will the outcome (Cash Flow, CoC, ROI) be different than from if I would have input the numbers as monthly?

Trying to determine on which I should go by to determine if the deal is good.

@Henry Lazerow The cool thing about being in real estate is...you’re your own boss. It’s not like you’re walking into an interview for corporate America. Real estate gives you the freedom to do what you want, how you want...as long as you’re capable of getting deals done. Yes, ppl may look at the tats and have their own mental comments, but once you start talking your talk about how well you know the market, the numbers, the deals, etc...they’ll forget about your tats. Plus this is a whole new generation! We’re not baby boomers.

I had to constantly tell myself that since I look way younger than I am. I was skeptical that ppl wouldn’t want to work with someone who looks “so young,” so it just game me more motivation to learn more to spit out the knowledge that overpowers my young looks.

@Darius Ogloza What is a landlord policy and what does it cover?

@Mike Hoover Thanks so much! So even when you do your "1.5%" calculation, is it the cash flow amount and/or your CoC return that you go by to determine whether you think the deal is worth looking into more versus just leaving?
In other words, if your 1.5% gets you some cash flow, I'm taking that it's worth looking more into? I guess what I'm trying to ask simply is, is your 1.5% your benchmark? 

Sorry if I'm not making sense lol. The way I'm trying to ask it in my head may not translate as clearly on here. 

@Kenneth Garrett Ah I overlooked that. My apologies. Ty

@Kenneth Garrett So is the 1058 what you would put as rent? Or is the rent amount not mentioned here? Your expense breakdown is on the same page where I lack clarity.

@Nathan Cross Thank you for the insight! Obviously there are different ways to come up with a rent amount in order to receive cash flow. With me becoming a new investor, I first learned of the 1% rule and ran with the idea of it. But now I’m reading books and watching Brandon analyze deals on the webinars without a mention of the 1% rule.

So for you, my comprehension is that you look for your rent to cover the full mortgage with some money left over for cash flow of course, correct?

My lack of understanding is the CapEx, maintenance, & vacancies you speak of.

So is that all included in the amount you have for rent?