All Forum Posts by: Shane Malloy

Does anyone have any experience using Liveplan for business plan for a real estate investment business?  I've been putting my business plan together and am just creating a plan in Word to this point.  I have a lot of content but am concerned about it becoming outdated quickly.   

In evaluating Liveplan, it looks like it makes keeping the your business plan a little easier but it comes at about a $20 per monthly cost.  Wondering if others have evaluated and have any thoughts.

@Andrew Johnson you hit the nail on the head. In an ideal scenario, I would be in a market that was in close proximity, with plenty of buying opportunities, and offered great CoCRIO and IRR return metrics. Unfortunately, that is not a reality at this time. Thanks for the guidance.

@Joe Villeneuve that helps.  I think the approach of reverse engineering my financial goals is a good one.  Let me try that.  Let me know if you would mind me bouncing these off of you once I've finished.  Thanks again.

Also from a CoCROI, I am just taking the estimated annual cash flow of the property divided by the total capital invested (down payment, closing costs, rehab cost, etc.). 

@Andrew Johnson appreciate the guidance on how to reverse engineer this.  The answer to your question is not any that I am currently researching but I guess it doesn't mean that a deal like that could never come up.  

From my research, it looks like it would have to be ~20% under to make this achievable on most properties.  

Hi @Jenny Bayless.  Yes.  In my research so far, it definitely seems hard to get but I'm sure I just need to keep digging. 

@Bob Romano appreciate the feedback.  I think you are right.  I should target a higher cash on cash return.  10% seems to be high for the Denver and Colorado Springs markets but I think 5% is too low.

@Joe Villeneuve Not sure I agree.  I think you do need to have some targets in your goals.  Otherwise, they are too vague and rarely do you end up achieving them.  But like I said, this is a work in progress and I still need to do more work on these numbers.  

Denver and Colorado Springs are both driveable distances from where I live.  Right now, I wanted to focus on investing local.

The question was really around the cash on cash ROI and overall IRR and if that is something that is realistically achievable based on the current market conditions.

I am a new real estate investor and really appreciate all the information that is shared on the BP forum.  I live in Castle Rock, CO so right between Denver and Colorado Springs markets. 

As I am putting together my business plan, I am struggling with what my goals for CoCROI and IRR should realistically be. Would love to get some guidance from others that may be in this market.

Here is a draft of what I have:

To have five single family or three multifamily home with 5% in cash on cash ROI, an overall IRR of 10%, and over $1.3M in property value in the greater Denver area and Colorado Springs market by 2023.

@Michael Plaks Thanks.  Very helpful.

@Michael Plaks  Thanks for confirming.  I figured as much but could not find an article that really spelled this out.

Would you mind expanding on better options that a 50/50 partnership?  What would be a better approach for a first time investor?