All Forum Posts by: Rickey Miller Jr

That was a well explained breakdown and I'm very thankful for you to go over that information. I believe I was just overthinking the breakdown that BP was showing. I'll keep that in mind when I use BP calculator. 

Just to confirm the NOI is found by using NOI = Revenue - Operating Expenses
Then the (operating expenses) are property management, property taxes, repair/maintenance and insurance. Thank you again Mitch and happy we were able to connect!

I'm having a bit of a difficulty understanding Cap Rate, I figured I knew my numbers on this but I can't seem to calculate the same number BP is showing on Rental Property Calculator. I've got a seller allowing me to do owner finance on a 240 month term with a 2% IR, that will balloon in five years with zero percent down. Location: Blue collar C class property. 

BP Breakdown: https://www.biggerpockets.com/...

My questions are BP is saying my Purchase Cap R is 10.87% since I'm buying it with equity built in are there two different Cap R, because i've read "Capitalization Rate = Net Operating Income / Current Market Value"? Also what specific expenses are needed to calculate regular upkeep for property? 

Scenario: 

ARV: 79,000
PP: 55,000 - 240 month term - 2% IR - 5 Year Balloon - Zero Down
Entry Fee: 1,500 (Closing cost and commision)
Principal & Interest: 278.24 
Taxes: 96.75 
Insurance: 54.58
Monthly PITI: 429.57
Current Rent: 800
Repairs: 6 %
Vacancy: 7%
Cap Ex: 6%
PM: 0%

Thank you to whom ever helps me run these numbers but I just truly am trying to get the Cap R calculation, I'm an analytical person and it's just not adding up on my end!

Hi Victor, San Francisco is more of an expensive market. I'm not sure what course or training you are doing, but I'd just recommend you to go virtual. It will be simpler for you and possibly more beneficial since your not competing with bigger competition that may or may not have bigger pockets than you. Not knowing your situation, but Virtual is practically the same thing as investing in your backyard. The only difference is you need to communicate with Realtors, (boots on the ground) clients, and title companies/attorneys. Outside of your area, if you are not afraid of communication then it's practically simple. 

I know of one person that I believe is in a similar market. She had the same experience that you had with the area you are in. Her handles are "ThisMomFlips" all she does is virtual and may be a stepping stone to see how she started. Hopefully that helps. Also her name is Lauren Hardy. 

@John Mucilli Knowing my KPI's personally it just doesn't make sense to just cast my line out and wait for a call (Direct Mail). Direct mail has a one to two percent response rate and personally would just rather be proactive. But to answer your question that is correct I personally believe Cold Calling is more effective since you're being proactive. 

@John Mucilli Yes, personally just take action until you get your first deal. Have a low amount of expenses that come with the business/endeavors before you start spending to much on marketing. Just purchase a list, drive for dollars whatever is best for you. Then pick up a phone and smile and dial. In this business (Acquisitions/Wholesaling) you'll either have money or time. If you have both then great, now just learn to leverage one or the other. 

@John Mucilli Currently just Cold Calling, will be moving into Text Blasting possibly this next quarter. I'm more of a proactive person so I'll only be doing for the time being tasks to where I'm on the phone or talking to sellers and going after them. Hopefully that makes sense. 

Hi @Zander Kempf, so currently we have purchased lists in the pasts and continually squeezing all the information out of them as much as possible. We are still getting leads from about 20,000 records downloaded back from May. Just collecting all the juice out of the lemon as much as possible. Currently on organic reach but very present on search engines. Will be focusing on organic in December. But for the time being only text blasting and cold calling. I'm more of a proactive investor, will even go door knock on someone's home if I have too. 

It's ultimately going to depend on your market, how many leads you talk to and how much time you have to contribute to the business. I'll have some information listed below. This day shown below will be over the last three months on an average. 

Calls Per Day Per Agent: 608.18

Live Connect with an Agent: 52 Conversations Per Day

Leads Per Day Per Agent: 2.46

Average Profit Per Deal: $10,727 (Profit Per Deal is skewed since I am adding creative finance in that mix). 

Yeah I believe they should be rewarded for there practice. I personally make sure they have a since of a personality and not a robot honestly. I don't think hiring American Callers will be the way to go, I saw that because at my current time in my business I wouldn't want to pay anymore than I need too for callers. 

If I were to let you listen to some of the calls you would never know they we're from the Philippines. I truly believe there work ethic would be better in the Philippines too, all in all a better investment and great people out there. If you would like to send me a direct message I'll send you an audio file.

Hi Henry if you want to direct message me by clicking on my profile. Then sending me a colleague request and you can message me then so I can send an attachment of the documents you are asking for with examples.