I think the main reason BP has the fifty percent rule is that way too many sellers, Realtors, gurus, and other parties interested in ONLY selling quote things like "only 25% expenses".

What part of Chicago the five percent in?

thank you thank you thank you guys.. clarifies a lot. i was wondering if i was already taking 65 percent of the top then how much is this finally offer going to be if i continue subtracting expenses.

In our economy interest rate volitility is very small, usually tenths of one per cent mothly and rarely no more than two and a half or three per cent in any year, and at only one time in our history have interest rate moved more than 10 per cent.

That being said I will be watching for opportunities because I personally don't think we will see the price levels again in our life time.

Vegas and Phoenix have both witnessed a substantial increase in the average purchase price as a percent of ARV and profit margins are quite a bit tighter now compared to a year ago.

Remember the audit is there but the big x factor is the lawsuits.E and O quotes higher rates for property management.Even if the landlord and or the tenant or BOTH are at fault they almost always blame the real estate brokerage.Sometimes it is merited and many other times it is not.So to run a property management company you have to be very meticulous with everything.Many investors are out of state so they will want turn key management (one stop shop).Rates will depend on what type of asset and the size.When you go to IREM there is different training for different classes and sizes.For example the scope and management on a 20 unit apartment building will be very different from a 200 unit complex.Generally for apartments fees are 8 to 10% for 50 units and below and 50 units and above 5 to 7 percent of gross rents.Retail can be as low as 4% management fee.Houses you will be competing with low ball agents who are having a hard time selling real estate.The problem for landlords is once the managers start closing real estate sales they could care less about the rental.This is just like many agents doing bpo's now and when sales pick up they will dump doing the reports fro 50 bucks.If you want to be serious about management do it full time.In my area for houses the most reputable companies charge about 10% plus half of first months rent for houses.It's not about what you charge but what you provide for that fee.You will get landlords trying to squeeze the management fee because they overpaid for the property.That is not your problem when taking on rental property.I don't do property management but one of my broker friends manages over 400 homes with 10 property managers for his company.He likes the residual income it provides.He also land sales off of it as a side benefit.

You will eliminate the finance requirement of 20 percent equity and the rates will be like OO property.

It's a bunch of BS created by our current government and is nothing but more bloat in my opinion.Yes if you are a Residential REO agent many of those are drying up as short sales are being pushed through before it forecloses.So YES I know an REO broker friend who has paired down and completed about 800 residential short sales with a 90 plus percent success rate.He is a beast at them and has it down to a science.Now for me I work the commercial real estate side.

With this scenario does the fifty percent rule apply?