All Forum Posts by: Account Closed

It all depends on how much you are able to purchase the property for. 
I just purchased a property in Houston, TX that was built in 1955, It has major foundation problems, and major plumbing problems. From my estimates they were 20k in fixes with warranty's and permits from the city. 
I in turn negotiated 30k off the asking price and gained 10k in equity because of the problems the house had. 

I would say it just depends on how much you can get the house for, and how much the repairs would be to be repaired. Then add in all your expenses and if you are making the return you are ok with, go for it. 

I personally LOVE houses with problems that other investors stay away from. I see ton of opportunity in them. 

Good luck! 

I can admit it, I am still a newbie and proud of it. 

Real estate investing is by far the most fascinating thing I have ever been able to do in my life. Yet I feel as though If I could find the appreciable gains before a market emerges, that would take my real estate investing which It is my passion to the next level. 

OK, now to to the real reason why I am posting this. I am attempting to gain insight on how to find markets before the major appreciation happens. (Doesn't everyone) I realize in David Lindahls books he speaking on Jobs, Jobs, and Jobs. How to contact the city and probe for information about how committed they are to their master plan. Yet, I feel as though with his books he tells you the concept of HOW to do something, he doesn't give you the details on actually how to do it. 

SO I am asking all you SAVVY investors who know how to read statistical data and make sense of it to lend out a helping hand to myself, and any other investor who is interested in this topic as well. 

My Main Questions - 
How do you get the statistical data? 
When you do what are the KEY FACTORS you are looking for? 
Do you call the City/County to pull information about that city? 
How do you make sense of it all? :) 
What are your experiences and lessons from investing through this method, and what results have you gotten. What are some pieces of advice for a newbie in this field? 

I know what my strengths and weaknesses are as a Investor. I am great in Networking, Marketing, Sales, negotiations, finding the deals, and well the list goes on. What I am not good at is Details. If you use the DISC profiles I am a high I & D. 

I offer my services, help, and or network to anyone who can help educate me in what I am lacking. 

I have booked a lunch with the LIED institute economics directer of real estate from UNLV later this week to pick his brain.
I also am attempting to contact someone through another referral who has an economics background in real estate from the George Mason University.   

I will post my results and what I have learned from anyone I get in contact with that can help me with this temporary issue. :)

Thanks for your time. 

Looking to team up with a portfolio lender for long term goals. I currently have no loans on any of the property's I own so I would not say I am advanced in exactly how the process works. 

I am currently flipping homes in Las Vegas, and in Houston, TX. I buy all my homes Cash and want to transfer some of the funds into rentals. As of right now I would say 80% of my business are flips, and the other 20% is a rental property I have. 

I am looking to make that about 50/50 by the end of the year. I have one rental in Las Vegas that is paid off, I would like to make get a equity loan out of it to use towards higher returns in other markets around the US for rentals. 

I have two property's I am selling that are currently in Escrow and I have one home for purchase in escrow in Houston. My business is 6 months old so banks will not give me a loan as of it with my short amount of time since start up. 

I would ideally like to find a high LTV lender (wouldn't everyone), 30+ year terms, and 5% or lower rates.

Thank you for your time. 

Your right the rehab does seem too low, its been Vacant for a good time now.

And current properties around the said property pay only Electricity

I so appreciate everyone's input and you have made me think about a lot of different things I have not thought about yet. This is what is going on in my mind. And please correct if you see any errors or any thoughts on these numbers.

This complex is located in a C- area which is becoming a C+ area in my opinion. There is a massive influx in jobs in the area, and a revitalization to the community. Needless to say its up and coming, close to bus lines, and most of the other complex's are being purchased and fixed.

I called around today to all the different property's I could find and got a basic idea that all 1 bedroom units close to the same SQ are going for about $500-700. Mostly 500. And I did some market research on the area and the zip code itself is operating at about a 15% occupancy. Although every PM told me they were filling up as soon as units were opening up (I would say the same thing even if it wasn't true if I was a PM)

So here are my numbers of where I am at. And please correct me if I am wrong, I am a newbie :)

44 Units @ 15% occupancy is 37 Units
37 Units @ 475 rent Monthly (I like to use conservative numbers)
= 17,575 Monthly Gross
x 12 Months = 210,900 Yearly Gross

210,900 with the 50% rule for all Expenses and PM
= 105,450 Yearly Net
= 8757 Monthly Net

105,450 at 10% cap rate is $1,054,500.

But this is the FUTURE income that could be had. I must mention the average complex is going for about 7-8% cap rate which is huge equity for me I feel. But I do not want to speculate on what I would be able to sell it for just yet, and I want to make sure my numbers are safe for my ultimate goal of buy and holds.

Now this is just a estimate from my initial preliminary due diligence and I would need about 200k of rehab on this property to get up to par if not better with the other property's that would be my competition.

I would have to consider carrying costs of 6 months for rehab and getting the place ready for rentals. Which would come out to be with the loan around 60k. Like I said I like to conservative in my numbers.

So this is where I am at with my numbers. Please help. I feel like I am starting to get an idea of how to calculate all this information but yet still feel like I am missing out so many key pieces. I plead with anyone reading this, if you can give me ideas, thoughts, past experiences, or just anything it would help me out a lot.

The Newbie Sponge,
Pasha

Hi first time posting on this thread. A Little bit about me, I am an investor in Las Vegas who is looking to make the ultimate leap into multi unit complexs. My thought process is why start small? I have read the books by David Lindahl & Ken Mcelroy. I have a Mentor I work with and a mental coach. That is the extent of my knowledge other than reading every post on BP I can :).

I just started getting in opportunities by my broker and started a direct mailing campaign as well. My broker calls me and has a pocket listing that thinks I would be interested in because it is a fixxer upper. (which I do mainly only fix n flips in Vegas)

The complex is a 44 unit 1 bedroom complex, Within a growing and emerging area. Average rents for the 1 bedrooms is 400 in this area. It needs about 250k worth of work.

My question is this, How do I evaluate the worth of this complex? I understand I could always go off of future income which comes up to close a Million dollars. But, from everything I learned, and just simply being a buyer who does not buy retail I would never buy it on "future worth"

I do not have extensive knowledge on this area and open to all ideas, thoughts, experiences.

Please if you need any other information from me to make a knowledge answer please just ask I will get it to you immediately. I am sure I am leaving out valuable information that you are missing, which in turn means I should be thinking about when I make my Valuation.

Thank you for your time BP posters!

Also I would say all other property's in the area that are 1 bedroom complexs are at a 90% occupany. I will be verfiying that today by calling all complexs in and around the area to confirm their prices and vacany.

Congrats! May I ask how you sourced the deal? Direct mailing, networking, etc etc...

Hi, new to BP, investor here in Vegas, just curious when the next meetup is?

Looking forward to meeting other like minded investors in Vegas.