14 October 2021 | 15 replies
If the SM had a multiplier of 10%/year, and the RE had only 5%, if you did #1 above, you would end up with a return the first year of the following: A - SM: $120k x 10% = $12k; New total = $132K B - REI: $600K x 5% = $30k; New total = $630k...and, thanks to the power of compounding, every year after year 1, the spread between the two gets wider....in favor of REI.
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28 October 2021 | 5 replies
If I want to evaluate quadplex consisting of 8 bedroom, 4 bath should I find a similar comp for 2 bed 1 bath in the neighborhood and multiply that by 4?
18 October 2021 | 2 replies
Some can have the same numbers.3 - Add them all up (you haven't assigned any of them...you just made a list of all of them). 4 - Divide 100 by this number.5 - Now, assign each role to the partners doing them. 6 - Add up each partners list. 7 - Multiply each total by the number you got in step #4.8 - These are the percentages that each partner will get.
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18 October 2021 | 2 replies
Margin interest example$187,000 for 6 months (180 days)Multiply loan amount by the effective rate: 187,000 x 7%Determine the daily interest amount: $13,090 / 360 = $36.36Calculate the interest due after 180 days: $36.60 x 180 = $6,588 + additional funds / holding cost interest for for rehab budget
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28 October 2021 | 19 replies
According Grant, whatever you normal realistic goals are multiply them 10 times (10X ) then figure out, how you can achieve them.3 Walk the WalkYour daily activities & actions must match your goals, if you have aggressive goals, you need to have equally aggressive daily activities & actions to match your aggressive goals.Goals are just wishy washy, talk the talk unless you back it up with aggressive hard work & be willing to walk the walk.You need to work hard & smart, it is not uncommon for successful people to work 60-80, 100 hours a week to achieve their goals.4 Develop Great habitsHabits are routine things you do daily basis without too much thought process.
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25 January 2022 | 9 replies
You'll find that BP is the heart-pulse of RE investing and your portfolio can multiply from these forums.
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26 October 2021 | 27 replies
Monthly Income: Monthly Expenses: Monthly Cash Flow: Pro Forma Cap Rate:$1,550.00 $2,248.06 -$698.06 2.35% NOI Total Cash Needed Cash on Cash ROI Purchase Cap Rate$8,124.00 $20,349.00 -41.17% 2.35%======Financial Projections======== Total Initial Equity: -$334,650.00 Gross Rent Multiplier: 18.55 Income-Expense Ratio (2% Rule): 0.44% Typical Cap Rate: 2.35% Debt Coverage Ratio: 0.49 ARV based on Cap Rate: $345,000.00=======50% Rule Cash Flow Estimates======= Total Monthly Income: $1,550.00 x50% for Expenses: $775.00 Monthly Payment/Interest Payment: $1,375.06 Total Monthly Cash Flow using 50% Rule: -$600.06========Analysis Over Time==========Annual Growth Assumptions 3% 2% 3.4%Expenses Income Property Value_______________________________________ Year 5Total Annual Income $20,536Total Annual Expenses $28,645Total Annual Cashflow -$8,109Cash on Cash ROI -39.85%Property Value $407,776Equity $111,347Loan Balance $296,429Total Profit if Sold $49,939Annualized Total Return 28%
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27 October 2021 | 4 replies
The issue is that Newburgh is at least 66 miles away which would multiply the amount I spend on gas monthly and also tolls, not including the hours off of my life that I would spend traveling.
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28 October 2021 | 1 reply
BP calculator doesn't give you all the parameters or what to input as real numbersFree ones: Loopnet ~ look for sold comps on 5+; have agent access to MLS for sold comps 1-4; Apartments.com for what lease is offered in area.Boots on the street (Agents who list in the past 4 months on the block), make friends with agents in the area.Know how to calculate the gross rental multiplier.
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3 November 2021 | 7 replies
$260.00Management $520.00Insurance $111.00Property Taxes $354.00Mortgage Payment $1,517.96Total $4,072.96Monthly Cash Flow: $1,127.04Cash on Cash ROI: 24.18%Financial Projections:Total Initial Equity: -$ 351,000.00Gross Rent Multiplier: 6.25Income-Expense Ratio (2% Rule): 1.28%Typical Cap Rate: 8.14%Debt Coverage Ratio: 1.74ARV based on Cap Rate: $ 390,000.0050% Rule Cash Flow Estimates:Total Monthly Income: $ 5,200.00x50% for Expenses: $ 2,600.00Monthly Payment/Interest Payment: $ 1,517.96Total Monthly Cash Flow using 50% Rule: $ 1,082.04This feels like a good deal based off the number, but It also put me on top of my budget.