All Forum Posts by: Seth C.

For refm, it is a mix of having many features like realdata, including double promote, two levels of detail that you can use to promote to different people, rehab scenarios, etc., as well as being customizable. That last point is a big one. I find it hard to justify $500 for realdata when it is not customizable, but it is Galinelli's product, and it is very well done. REFM is also associated with some big names, Bruce Kirsh there works on some level with Peter Linneman from Wharton. So those two are backed by some of the biggest names in RE finance. 

At the same time, I don't really know if their computer programs offer anything more than what is offered by Michael, or that couldn't be easily integrated into his excel models. Two things that stood out to me are the double promote and the MIRR. But MIRR can be added in about 30 seconds since there is an excel function for that (as I found out), and it is not even useful for promoting your deals. Everyone has their own baseline for returns, and they need to do it themselves. Double promote, lease option returns versus syndication, more complex tax calculations, comparing different opportunities in detail ... at least the possibility to add it is there.

In reciprocity, what are the main points you are looking for? I am quite curious as to what you are leaning towards, whether it is ground-up dev or anything you have seen... I am shying away from ground up for now, because I think I risk focusing on things that are textbook important but perhaps need to take a back seat in light of an experienced investment perspective. These guys have already done that for me, so it is an inexpensive way to get some training wheels while I learn by doing.

I am currently looking into refm, getrefm.com (excel or web). I think the two most advanced options would be that and realdata.com. Michael Blank, who writes on the BP blog, also sells something at themichaelblank.com (excel). I have not looked in depth into it, but it looks pretty solid for most use cases while being considerably less expensive.

I think I want to answer this in a little more pithy fashion.

1. If you are willing to use last 3 months, you are overpaying, because it should be trailing 12 at least, and it should definitely be the same time period as the one you use for expenses or it is an apples to oranges comparison. That may be fine if you are buy and hold and everything else is in place, it is for you to decide. Some seller's are attempting to use 3 months, but I personally think every buyer should resist and even refuse this.

2. If the previous manager really committed theft and fraud, there should be a police report, shouldn't there? If not, at the very least back to trailing 12 it is.

3. I would check credit scores and criminal background check all these tenants they managed to miraculously add. Some owners will lower tenant standards, hide concessions, etc. (as others have been pointing out to me in completely unrelated PMs) using mgt fees, maintenance expenses, anything they can think of to hide them. NOI looks up, but Caveat emptor. 6 month leases might be part of that.

So those are the things that make me hesitate, but I do not wish to distract from the positive points others have been making. This may be best you will get in the market where you wish to purchase. At the same time, I would beef up due diligence even if it costs a few thousand more.

Check on rent concessions which will drive economic occupancy way down. 3 months is way too short for proper vacancy analysis, and you must be wary. It is classic to offer free month's rent etc to increase occupancy and then sell right away before vacancies normalize, so you need to have better numbers and a value-add plan in place and funded before moving on this. Don't pay for your own work, and insist on a longer trailing period for NOI/purchase price calculations. My 2 cents from my own research as another new investor.

@Andrew Kerr, nice resource. Unfortunately it does not have my target area, but it will be great for many people.

@ does not work for me ... but that must be because the page never finishes loading from overseas. At least I know what should happen!

@Jordan T.:
Yeah, there are creative ways to speed things up! At the same time it sounds like almost pure philanthropy when you count in opportunity-cost. It would be very satisfying to extend a good neighborhood or solidify it's borders, but perhaps when I have hit my goals for the decade ;).

As an aside, how do I mention someone in the forums without hitting "quote"? I tried hyperlinking to their profile, but it is just a plain hyperlink....

Legally, yes.

The crime is real, but you are definitely right. I need more PD feedback. I have some renter information, but that can be tough to filter at times!