All Forum Posts by: Chris Collins

@Rebecca Zadell thanks, I'll try it with a much lower price. Can't hurt to offer :)

When I've been analyzing deals, I've been getting numbers that are way off the 50% rule.

I know that that's only a guideline, but I'm not even close. Am I doing something wrong? Or am I being too high on my estimations of capex, repairs, insurance etc?

Please advise?? Here's a fourplex example where my Cash On Cash calculates to $43 but the 50% rule would put it more at $670.  Why so far off?!  I feel like an idiot here...

https://www.biggerpockets.com/calculators/shared/3...

50% rule breakdown here:

Total Monthly Income: $2,960.00

x50% for Expenses: $1,480.00

Monthly Payment/Interest Payment: $810.70

Total Monthly Cashflow using 50% Rule: $669.30

thanks in advance!

-Chris

When I've been analyzing deals, I've been getting numbers that are way off the 50% rule.

I know that that's only a guideline, but I'm not even close. Am I doing something wrong? Or am I being too high on my estimations of capex, repairs, etc?

Please advise?? Here's an example where my Cash On Cash calculates to -$182, but the 50% rule COC would come to +$141...

https://www.biggerpockets.com/calculators/shared/3...

50% rule breakdown here:

Total Monthly Income: $1,500.00

x50% for Expenses: $750.00

Monthly Payment/Interest Payment: $608.02

Total Monthly Cashflow using 50% Rule: $141.98

Thanks everyone for the replies and feedback. Glad to know I wasn't the only one thinking 'hmm, does this really make sense for me, the investor?'

So nice to have this resource here, and to hear from agents who are doing the same thing, but with no exclusivity contract, and still doing business. That's what I expected and what I'll be going for. 

thanks,

Chris

I'm looking out of state to purchase buy-and-hold small multi-family. 

Yesterday I had a call with a realtor in Austin, TX. She deals mainly with investors, and focuses on multi-family. So that's great, just what I need. But...

I was then sent an exclusive agreement, good for 1 year from her. She asked that I sign this before she sends me any properties.

"Client grants to Broker the exclusive rights to act as Client's real estate agent for the purposes of acquiring property in the market area."  Time in place: 1 year.  (it covers Austin, as well as surrounding counties Travis, Hays, Williamson, Bell and Burnet).

Basically, if I sign this, I'm limited to deals through her and her alone. If I personally find a deal, obviously I can bring it to her to represent me, but if I were to find/buy a property with another broker, she gets the commission from me as a penalty. 

My understanding, is that you want multiple agents sending you 'deals' to find 'the right one' and then you buy it.  Have them working for you, and that's how they make their commission.

But I also understand, that they wouldn't want to work all those hours finding and sourcing deals and sending them your way, if you're just going to buy a different property with someone else and waste their time.

I'm all about 'everyone gets their fair pay for their fair work.'  But please everyone, let me know if this is out of line? Or the normal practice?

thanks for your wisdom!

-Chris

Has anyone besides @Jerry W.bought actual deals they've seen listed here? or have most people been using it as a networking tool?

Such a wealth of info on this site. Thanks everyone for your feedback.  Looking forward to posting about my first deal soon enough.

One problem I'm having as a newbie, is obviously, finding the right deal to get started with.  

Being in Los Angeles, I'm looking out of state for buy and hold properties. Not looking for fix and flips, but looking for small multi family properties to start with. My main priority is a solid deal that cash flows.

My question is: How good /reliable are the deals you generally find in The Marketplace on BP?

Is it more like Loopnet? (tends to be old and not-so-great deals that have been passed on) or are they generally legit and should be taken seriously?

Sorry if this is insulting to those in there posting up deals,  I mean no disrespect, just trying to learn where to focus my time on finding this first deal.

Thanks for your opinions and experiences,

-Chris

Congrats! And good job 'just doing it' and not letting it bog you down too much. I'm looking to make my first purchase in the coming months here. Finally have everything lined up for my lending, just looking for the property now.  Encouraged to hear someone else out there getting started!

Thanks for sharing! Gotta love how technology is making things so much easier for today's investor.