All Forum Posts by: Sonya B.

Has anyone used the "Your First Million in Real Estate Course" from Clever Investor? Its by Josh Altman (from Bravo's Million Dollar Listing show) and Cody Sperber. The course covers wholesaling (they call 'No-Money-Quick Flips) and flipping (they call it 'Fix and Flips'). Just wondering if anyone has heard of this or has used it and what your thoughts were?

@Steve Smith

I PM'd you. Thank you.

Hello all,

I've been researching how to analyze multi-family units (put together a spreadsheet and everything - look at me doing big things, ha!) and I've come across the GRM calcuation. I found a site explaining how to calculate GRM (Purchase Price / Annual Gross Income = Gross Rent Muliplier {GRM}) - great. But the article also covers a calculation on market value (GRM * Annual Income = Market Value).

The example given is: 

- Property sold for $750,000 / $110,000 Annual Income = GRM of 6.82

- Let's say that you did an analysis of recent comparable sold properties and found that, like the one above, their GRM's averaged around 6.75. Now you want to approximate the value of the property being considered for purchase. You know that its gross rental income is $68,000 annually.

- 6.75 (GRM) X $68,000 (Annual Income) = $459,000 (Market Value)

- If it's listed for sale at $695,000, you might not want to waste more time in looking at it for purchase.

My question is: 

1. For all of you seasoned investors (evaluators) out there, are these the calculations you would use together to determine if a property is overpriced?

2. Is there a general recommended rule of thumb for how far OVER market value an investor should consider going over before walking away (I'm sure this is a personal decision but I just mean generally)?

Thanks a ton in advance for answering.

@Ben Moores,

I used to live on the Southwest side! Now I live in Katy and work Downtown...small world. I'd love to grab a cup of coffee and talk. I'm super appreciative that you offered. I'll message you and we can set up a meetup. Thanks again, looking forward to it.

@Rachel Pervis,

I've been going through a lot of the BP forum posts and member blogs, and have made a list of some books I'd like to check out. I'll be purchasing them soon. In case anyone reading this wants to know what they are, so far I have: Multi-Family Millions: 

1. How Anyone Can Reposition Apartments for Big Profits by David Lindahl

2. Loopholes of Real Estate (Rich Dad's Advisors) by Garrett Sutton

3. The Complete Guide to Buying and Selling Apartment Buildings by Steve Berges

I know there are many more, but I figured this was a good starting point.

As of for my expectations from a mentor, I have them in my head but should probably write them out so I can fine tune it. Thank you for your recommendations and for offering your help. I will certainly except all that I can get. And hopefully along the way, perhaps I can help as well.

@John Cohen

Thank you for responding, and for the pointers. I've actually been looking at my local REIA, and will definitely check them out soon. Thank your for answering Mr. Washington's question below about picking price points. I'll try my hand at that too. There is so much information out there that becoming an expert sounds daunting, but I have no intention on just jumping in blind. I'll most certainly learn what I can and ask lots of questions! I'll take you up on your offer of help and inbox you soon to get some questions answered. Thank you so much again!

@Tim Shin, Thank you for the pointers. As RE clubs go, so far I've joined Lifestyles Unlimited (the basic membership - wasn't ready to shell out $20,000+) and The Wealth Club. I haven't been to the RICH club yet so I'll have to check them out. I'll put some of your other pointers into play as well. Thanks again.

@Anthony Chara, thank you for responding. If I'm unable to secure a mentor before doing my 1st deal, it looks like I will be waiting until I do a deal or two. I have no intention on waiting to find a mentor to complete my 1st deal, its just that I know a mentor would reduce learning times and mistakes. I was hoping to foster an investing relationship where we could be mutually beneficial to one another; however, I'll keep looking and learning and will take action in the mean time. 

@Account Closed,  I will most certainly look into the 7 steps you provided. Thank you for that, and for offering to assist once I find a good deal. I’ve begun working on steps 1-3. I’ve also bought and am reading BP’s Brandon Turner’s “The Book on Rental Property Investing” (on the 4th chapter) and “The Book on Managing Rental Properties” (not yet started).

To answer your # 6, I am looking to buy and hold...hands down.

@Buu Quach, can you provide additional details on that meetup? I'd like to check them out? Are they a part of one of the local RE clubs? Are there any commercial REI that attend? Thank you for answering my questions.