Real estate's "gross rent multiplier" is Wall Street's "sales to revenue",  "cap rate" is roughly "P/E ratio".When evaluating markets and investments I tend to start with GRM (or lazily the 1% rule), then attempt to return a cap rate based on assumptions about costs, then I work my way to multiple years of projections (assumptions about inflation, amortization, tax benefits, etc), and if I am partnering with one of my smart friends I have to pull up an IRR (internal rate of return).I also look at regional employment levels, median income to rent ratio in the zip code etc. 

Or an experienced flipper/rehabber.What you don't want to do is bring in partners who are just like you.

Let’s end the year strong together!

I want to partner with you.

I have a lot of ideas on how to buy real estate with no money (Novation, Subject To, owner financed), to partner with someone who has money, and/or to buy for yourself with money. 

Expanding to nearby areas with lower costs and strong rental demand can also make sense.

It also positions you to work more effectively with lenders and partners who want to see a professional financial setup.How are others here organizing their finances?

Hello BP.As part of me and my partner plan to establish a Joint Venture with an investor, we are moving forward with purchase of a property in JV model.We would appreciate clarification on the following points:1.

The fact that your property is in a strong area with high-quality renters and growth potential is a major advantage.First, revisit your numbers to include all expenses and potential tax benefits, like depreciation and mortgage interest deductions.

I’m not looking to be an active/public realtor, just need a place to hold my license.For context, I currently hold an active HI real estate license in good standing and have strong networks on both Molokai and Maui.