All Forum Posts by: Andy Wu

Depends what stage you're in and who you're presenting the information to (high net worth individual or PE) also depends on if you're trying to raise money for a portfolio or just simply one asset..... I would simply show a pro forma on that asset, and if you're doing portfolios I would show a aggregate projected return. Usually, investors want their money to do all the work for them at a fast pace. So I would present the deal with respected NPV & IRR vs ROI. Put all the information in a less than 10 slides deck and show it to them, if they want more information show them your back up data. Things to keep in mind, I don't think the deck should be over 10 slides. Investors are lazy. I go through a deck 100+ times literally before I send them out until I believe I am spoon feeding investors. Don't rush this process. First impression is everything.

@John Wulf I would look at it from a Gross Yield perspective. If you are getting you're getting below 4% interest rate and your Yield is above 4% I would keep on making money on other people's money. However, if you're looking from an IRR standpoint it'll be better if you sell the asset right now. You'll have to do a full analysis on all your properties and really compare the two scenarios, simply spend an hour or two build something in excel and compare the outcome of two options. Since you're doing flips on the side, I would look at IRR & NPV....

@Len Grosso Welcome! 

@Kyle Soderman since this is for students. I would take into consideration of "Bad Debt" 3% of (Annual rent - Vacancy lost)...In addition, IMO I like to use IRR/NPV approach vs ROI (see attached on my rental analysis) since we are talking about cash flow and there are reinvest opportunities. Also, you might need to figure out your exit strategy for this asset i.e hold for 5 years and sell it or hold forever. By doing so, it'll effect your rehab perspective and R&M....

@Chris Featherston - Since this home was a REO home, I am going to assuming it was distressed. In that case, you really have to look the asset physically.... have an estimate on what kind of rehab you want to do and a dollar amount & time frame. Also, play with some numbers and see which exit strategy is the best for your target property (Flip & Rental) see attached image, and we can see the property I was analyzing have a significant better return as a rental, I like to focus on indicators like IRR & NPV, ROI doesnt really say much but is nice to see. Therefore, the best direction to go was a rental..

 Likewise. Good luck with everything.

https://www.sylvanroad.com/wp-content/uploads/Rent...

Oliver Chang published this research article about a month ago. Very useful information and data. I personal believes that he started this industry from a institutional standpoint. See below for this bio.

Oliver Chang is a co-founder and managing director of Sylvan Road Capital, an asset management firm focused on the buy-to-rent market. Oliver is a thought leader on the topic of institutional investments in distressed single-family housing, having served both investors and government agencies. His housing research is often cited in the media at outlets including CNBC, NPR, Reuters, Bloomberg, the Wall Street Journal and the Washington Post. Before co-founding Sylvan Road, Oliver served as Morgan Stanley’s Head of US Housing Strategy and is best known for correctly predicting the trajectory of home prices since 2007. He focused on all aspects of the housing market including home price dynamics, supply and foreclosure issues, demand and mortgage credit concerns, and the relationship between home prices and mortgage performance. Prior to this, Oliver served as a mortgage credit analyst and a home price derivatives trader. Oliver received a BS in Operations Research and Industrial Engineering from Cornell University and an MBA from Columbia Business School.

@Fitzgerald Hall - Thank you very much for the information. Regarding what I have to offer, I am very experienced from an institutional investing standpoint. I helped managing large real estate portfolios, analysis on asset pools as well as individual assets and determine their best exit strategy (Flip or rental) based on different components (IRR, NPV, Cap Rate and ROI). In addition, I help portfolio owners leverage their investment and selling their asset pool to REITS or aggregate investors. I have lot connections in the institutional REI industry, such as one of the co founders for The American Home (sold in 2015 for $263mm to Silver Bay SBY), co founder of Sylvan Road (Oliver Chang's partner- https://www.sylvanroad.com/wp-content/uploads/Rentership-Revisited.pdf ) which started this whole institutional investing, few managing partners for mortgage companies (Portfolio Financing)... Regarding on time & money, I can spend what ever is reasonable and I can dedicate my weekends and nights...

@percy n: Can you please elaborate ? Sorry, I'm new to the site not sure if i understand all the terms :) 

@Ryan Billingsley - I'm actually reading that book right now, very interesting! You started your REI with $600? That's very impressive...

"We started with a direct mail campaign and wholesaled"- I don't have any experience with wholesale and direct mail campaign, can you please elaborate little more on that?