All Forum Posts by: Account Closed

The cash flow's in Year 1 are not pro-forma. Those are actual. And Year 2, 3, and 4 just assume a 2% increase in gross rental income and a 2% increase in expenses.

Purchase Price: $125,000
Cash Outlay: $10,000
Year 1 CF: $1,805
Year 2 CF: $2,267
Year 3 CF: $2,454
Year 4 CF: $2,646

Using the internal rate of return.

Next question...isn't the IRR kind of like waving a crystal ball? I mean don't you have to assume what you're net proceeds from the sale of your property would be and tack that on to the CFn? Or last CF? It just seems that's assuming a lot.

Yes, but do you put in the purchase price or the out of pocket cash on the property to start as your negative number?

And, after it's all said and done what is a good IRR?

I am having a hard time calculating the IRR. Excel is not accepting my cash flows. I am lost. Can someone help? I have no idea why it keeps giving me the error. I have looked all over internet to find out what's wrong. Anyone have an excel spreadsheet I can use? Thanks.

Thanks Jon.

Sorry if I would have saw this post I wouldn't have posted that thread. Randal you on facebook?

The information on this website regarding real estate investing clubs is not updated. None of the phone numbers are accurate. Can anyone point me in the right direction here?

any help would be greatly appreciated. I've already tried this site but it does not seem to be updated. Contact info is stale.

The days of closing in two weeks to one month are over. You can expect turnover time from date of application to funding to be around 90 days. But that is not always the lenders fault. Our wonderful Obama administration now requires mortgage lenders to order appraisals through an appraisal management company. So you are looking at 2 to 3 weeks just to get an appraisal completed by someone who may not even know the real estate market you are located in. I will say some lenders are just flat out lazy and do not care. Sorry that you had to go through this.

All good responses here. Time is one of the biggest factors in increasing your credit score. Everything said on this thread I have done. My credit score is a 720 and it won't go much higher because I have never had a mortgage. A mortgage accounts for nearly 40% of your FICO score. So, the quicker you can get a mortgage assumming you want one, the quicker your FICO score will go up. Young people like us are considered more risky. The credit bureaus want our credit to gradually increase. Too much credit too fast will have the opposite effect. It will look like you ran out of liquidity/cash and you are supplementing your debt service by applying or getting new extensions of credit.