All Forum Posts by: Uneeq Khan

@Merritt S.

I've had some back and forth with the president recently. Basically he wants to be a hands off president. Basically all the power and none of the responsibilities. He keeps telling me to stop talking to him and talk to the property manager about everything. Even financials. He claims it's not his duty to manage the finances or keep track of them. It's the property manager. Property management company says they don't have records of any of the previous financials. Old property management company does, and old one won't give them since we are no longer a client.

Property manager told me that a meeting will be held in 2 weeks where they will discuss raising the HOA fees to cover the cost of the loan they need to take out to get the roofs done. So it seems some progress is being made to fix the roof. But instead of using the money that should have been in the reserve, they are raising the fees to cover it.

I've spoken to a few lawyers but they are all charging a lot for their time and I just can't afford it at the moment.

There will certainly be a battle in the meeting and I will surely call him out on it. He is very petty and I know he'll tell everyone he is raising the fees because I am making them fix the roof.

I think I'll be dropping off letters to each of the owners doors explaining the situation and raise awareness about the president's dealing.

I wanted to start a mutiny but I just don't see the others enough in passing to talk to them. Dropping a letter off will be the best.

@Nadine Delille

Is option 1 legal in NJ? I can't find any proper information whether it's legal or illegal.

@Jose Ramirez

Thanks for the info. How is IRR calculated?

I'm currently developing my own spreadsheet. It's nothing special but I designed it in a way to help me understand if the deal is good or not and includes other things like 1% rule, holding cost, cost of projects, and other details that aren't found the BP calc. I could also work backwards and figure out what the purchase price would need to be to get an ROI of 12%. My understanding of ROI was off so numbers didn't make sense.

I prefer making my own spreadsheet vs BP calc because I want to understand the formulas. This is the best way to do it. This way I can make proper adjustments for specialized situations. Once I fully understand all the formulas, I will use the BP calc for simplicity.

@Kerry Boyle

I'm usually good at math so I'm not understanding why I'm having such brain farts with this.

So for 100k HML with 12% over 1 year. I pay $1000/month for 1 year and then pay off the total $100k as well, totaling $112k during that 1 year.

Is this correct?

@Kenneth Garrett

Ok that makes more sense. Thanks.

@Brian Garrett

Thanks. This entire time I was calculating ROI based off "cost of project" (down payment and closing plus rehab and holding cost).

@Kenneth Garrett

I don't understand your calculation. In 8 months I would have $4000 if I cash flow $500 a month. Not $10k. I would need 20 months to get back the $10k invested. Am I missing something?

Need help understanding ROI in a BRRRR

So say ...

Purchase price $50k, down payment $10k, rehab $30k, ARV $100k, refinance $70k, therefore $10k is left in the deal.

Is ROI based off the $40k (money used) or the $10k (money left in the deal)?

Thanks.

I would be interested in learning wholesaling (and what's legal in NJ regarding it), tax lien strategies in NJ, and estimating rehab. 

@Denise Evans

If they have 3 years to redeem it back, what happens if you flipped it in that 3 year? Or you renovate and put a new tenant in? Does the new tenant have to leave immediately?