All Forum Posts by: Tom Henderson

Hello team!
I realize most of us are not attorneys; however, I'm curious how you set up your individual businesses?I'm looking at it from an asset protection, and business standardization framework.

---- I'm looking at creating a C-Corp for my Property management company (or LLC)

---- When I purchase additional properties, I'd like to consider purchasing them in individual LLC's

Can one purchase properties in personal names, but then run properties thru a management company; thereby, having some form of asset protection (running the $ thru a C-Corp).

Just curious if any of you agree/disagree with this approach? Again, I understand that I'm not receiving legal advice.. just looking for the counsel of fellow real estate investors.

Thank you!

Tom 

thank you @Jon Holdman   Appreciate your feedback. Have a great Saturday, tom

Hello Team,

I am working on updating my Annual Property Operating Data worksheet (from "Cashflow and 37 other equations you should know"). I have a CAP rate metric on there, I don't have ROI. What is the difference between the two metrics? It seems lots of investors use the terms simultaneously when, in fact, they could have totally different meanings.

Here is my thought on CAP Rate: Annual NOI)/(Purchase Price + Rehab costs).. is this right?

How would you calculate ROI?

What are your top financial metrics used when evaluating potential purchases? (I use 50% rule, and monthlyrent-to-purchase price.

Look at a commercial bank, and ask them for a construction loan. My first deal was a 203k FHA loan. I will never do a 203k loan again. It was such a hassle getting the money to be released from Wells Fargo, and the Insectivora were a pain in the butt.

Welcome back to Minnesnowta! I own 8 units in Minneapolis and 2 in St. Paul. Great city for investors. Happy to connect.

I've used Deuth Property Management for my rentals in St. Paul. Honest guys who run a good business. They also manage my folks' properties as well. My properties in uptown and NE-- I self manage. Two others that are highly reputable-- -Marty Morgan in St. Anthony - guardian Property Management -- Jennifer Olson spadine. Good luck!

Hello Team!

As a sales guy, I am obviously motivated by the all-mighty dollar :-) Each sales dollar I earn goes into a savings account from which I purchase investment property.. This is how I am motivated today, and someday this could change. On a macro-perspective, It may not be money, but I truly believe most people are motivated by something-- some type of measurement system.

I'm curious if anyone on this blog has ever implemented a customer loyalty/management system to encourage good behavior? if so, what have you implemented (or what would you like to implement)? What are the positive behaviors that are important to your business? 

--- Paying on time

--- Paying early

--- No bounced checks

--- lawn is cut weekly

--- only animals present are those, which are on lease 

--- no police calls

How have you, or how would you, incent your tenants?

--- 1 month off rent?

---  1/2 month off rent? 

---enhancement to property after X amount of time present? 

---Enhancement to property after signing an extension? 

Let's get this Tuesday dialogue going!! 

Hello Team, As we all continue to build our respective portfolios and business, I'm curious what has been the coolest thing Real Estate has provided/given to you? Listening to the podcast today, I appreciated how the guest from Clemson discussed his why-- why he got into Real Estate-- not to just build a business, but to enjoy life. So, kind of off-topic-- but I'm curious what your 'why' is, and any cool life experiences (trips, new hobbies, family time) RE deals-cash flow have provided to you? Cheers ! Tom

Thank you everyone for your suggestions!

I am going with the concrete counters-- appreciate your support and ideas. I'm looking for a way to attach photos here... my roommate helped me create concrete counters in my 4plex we live in. I'm excited to continue this in the new duplex and save some $.

Have a great day, all!

Tom

Hello Team,

I just finished reading "What Every Real Estate Investor Needs to Know About Cash Flow... And 36 Other Key Financial Measures"... Awesome book!

I'm curious, when you buyers are doing your due diligence, what are your top 5 equations you run? For example, CAP Rate is good, but I like how Frank mentions that is more of a snap shot in time. What are 4 others?

What do you think your portfolio investors are most interested in? I am courting a couple different investors right now to invest with me... What metrics would they like to see? 

One of my favorite Podcasts was the "5 C's a banker looks for" (or something like that). Same question here, which metrics do you think a portfolio lender or private banker is most concerned with?

Perhaps they are all the same, maybe they are different. I am looking forward to updating the spreadsheet I use to evaluate my portfolio purchases, and also update my deck, which I share with investors/bankers.

Thank you,

Tom