All Forum Posts by: Tricia O'Brien

Rent - PITI, property management fee, any vacancy or repairs to get your Net number. Take x 12 months and then divide for the down payment plus closing cost figure.

There are several ways others do this but this is just one way.

Good luck

Is net cash flow the same as NOI (net operating income)?

So, using your system, if there was a property with rent value of $995/month, PITI $750/month, property management $80/month, estimated repairs $50/mo and estimated vacancies $50/mo. If the property could be bought for $50K with $10K down (20%) and $1K closing costs then your net cash flow would be : $65/mo x 12/11,000 = 0.071.

So net cash flow is 7.1% ?

Any input would be greatly appreciated!

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Originally posted by @Curt Davis:

So if I understand you are looking for $500 in monthly cash flow after PITI and $250 for say vacancy and repair contingencies correct? I think your criteria is basically going to be UN-achievable for the most part. In my market for example using a standard deal of say $89,900 sale price , 20% down 4.875% rate, 30yr loan, est $5k in lender total closing cost, and $250 in monthly contingencies, this home would have to rent in the area of $1,300 per month. If you ever find anything like that you better jump all over it. I doubt it will happen but crazier things have happened.

Good luck

Can you tell me the best formula for estimating return on investment (ROI) for a rental property that an investor is considering buying? I believe it would be taking the anticipated income from 12 months on the rental market divided by all expenses:

ROI = 12 months rent ( minus 1 month expected vacancy)

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Cash up front to purchase + PITI for 12 months+prop management (12 months)+estimated repairs(12 months)+cost for rehab/cleaning to get it rent ready

Is this how you determine ROI? If not, what formula do you use? Any input would be greatly appreciated !

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What are the top 2 or 3 states in the US where you do business currently?

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Originally posted by @Soji Oyenuga:

Originally posted by @Tricia O'Brien:

Soji, Your website is very impressive ! Is your compensation range of $500 to $10,000 per property in US dollars or Canadian dollars ?

Thanks Tricia, compensation range of $500 to $10,000 per property in US dollars for US properties. Our operation now is mostly US properties. However, if we deal in Canadian properties then the compensation will be in CDN

What are the top 2 or 3 states in the US where you do business currently?

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Soji, Your website is very impressive ! Is your compensation range of $500 to $10,000 per property in US dollars or Canadian dollars ?

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Originally posted by @Soji Oyenuga:

Originally posted by @Steve Haight:

Soji,

Interesting!! You do not talk much about money you offer, that seems to motivate a few more people?

May have what you want!

Steve

Thanks Steve, compensation is from $500 to $10,000K per property we close on or our partners close on. This is strictly commission based only. Payment is via the escrow. The commission earned per property depends on asking price of the property. we have the schedule in place.

Soji, Your website is very impressive ! Is your payment range of $50 to $10,000 per property in US dollars or Canadian dollars?

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Originally posted by @Kyle Stoltz:

Tricia I'm not using either of those websites. My experience most foreclosures need decent amount of repairs and that would lower my ROI as then need to put more cash into the deals. If I was flipping properties then I would absolutely look more into foreclosures, but right now just holding properties. I just know a ton of investors in the area so I'm constantly networking. The deal in McHenry was an older investor who was retiring as he's 80 so unloading his inventory.

Kyle, Thanks for your input about networking and birddogging. Do you think it's feasible to do birddogging and/or wholesaling from a city 2000 miles away? For example, I learned about a large investor in the Chicago area who wants wholesale deals (SFR) to rehab and then sell as rent to own houses. If I research several hundred properties on foreclosure websites, estimate repair costs from photos or estimation "shortcuts," get comps from Zillow and assessors values, is it conceivable I could find a few good non-mls deals to wholesale to the investor?

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Originally posted by @Kyle Stoltz:

I've also found a deal just like this in McHenry too, which is not a bad area at all. I missed that one but like a day, around two weeks ago. That actually had around a 56% ROI. I was a bird dog for a very big investor so just good at finding good deals.

What resources did you primarily use to find deals in the Chicago area? Did you ever use websites like HUDforeclosed.com or foreclosurelistings.com?

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Originally posted by @Wendell De Guzman:

Originally posted by @Tricia O'Brien:

Originally posted by @Wendell De Guzman:

I have a money partner and he has $900,000 left to invest and need to use in the next 15 days.

I am looking for several houses we can rehab and then rent to own.

I am willing to pay a wholesaler a $5,000 or $10,000 wholesale or assignment fee if you can bring me the following property:

ARV - between $150,000 to $250,000

Repairs - below $20,000

Acquisition Price (including your wholesale fee): my formula for my maximum offer is 80% x ARV - repairs - $15,000

So for a $200,000 property (ARV) that needs $20,000 in repairs, I am willing to pay $125,000. That's higher than what rehabbers are willing to pay.

Property has to be in A or B areas of Chicagoland (Cook, Dupage, Will, Lake, Mchenry and Kendall counties)

Below is my definition of A or B areas:

If you have a property that does NOT fit the above criteria, I have 247 buyers asking me for properties every single day. We can co-wholesale your deals. You bring me the deal, I bring you the buyer. By the way, please fill up this calculator when sending me your deal. By doing this, I will know if you have a good wholesale deal or not and if it's a good wholesale deal to whom we can wholesale it to:

https://www.biggerpockets.com/files/user/Mister4closure/file/wholesale-calculator---is-it-a-good-deal

Email me your wholesale deal at [email protected].

Thanks and I look forward to working with you.

Are you still looking for deals in Chicagoland to purchase by Dec 31 at : 80% x ARV - repairs - $15,000 or better?

Yes I am. Only $700,000 left but that's plenty for several properties.

What website or other resource do you use to determine if the schools are : fair, very good or best in country/state ( the criteria in your wholesale calculator)? Do you judge the schools based on high schools only?

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When researching a city out of my home state, what's the best way to research a zip code or a city on the internet for good schools? I'm looking for SFRs in the Chicago area that are in B locations with good schools. Any input would be greatly appreciated!

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All Forum Posts by: Tricia O'Brien

Tricia O'Brien has started 89 posts and replied 242 times.

Post: What's your real estate investing criteria?

Post: What's your real estate investing criteria?

Post: National Virtual Commercial Real Estate Bird Dog

Post: National Virtual Commercial Real Estate Bird Dog

Post: National Virtual Commercial Real Estate Bird Dog

Post: National Virtual Commercial Real Estate Bird Dog

Post: Good deal?

Post: Good deal?

Post: I WANT PROPERTIES - Have $900,000 That I Need to Use By Dec 31st

Post: Good Schools ... Best Ways to Locate for RE Investing?