When I say in the process, I mean we have secured lending, have evaluated and attempted purchase of 1 candidate (couldn't close the deal) and are now moving on to another candidate that we like.I've been reading around the forums about some of the financial evaluations and am working to understand why Net Present Value of free cash flows is not being used more in the evaluation of a property.It is interesting to understand the CoC as an income statement percentage and it is certainly interesting to do some quick calculations with perhaps the 50% rule.But until you take a series of cash flows, discount them by a Weighted Average Cost of capital, and determine if you can clear your next best alternative (stock market, paying down debt), how do you know if you really have a something that will make you money?

If your stock portfolio (the source of funds) tanks after you make an offer, it has everything to do with how the property is being financed and may influence your decision on whether to move forward, but has nothing to do with the financing clause language.Bottom line:  If my ability to fund a project is not contingent on my bank approved credit worthiness and/or a formal appraisal, all offers are cash...And, so far, no one has had a problem with this.Wm

Ming,Giovanni is dead on with the numbers.

This happens the other way too - one crummy house in an otherwise fantastic neighborhood will have a higher value than it really should.I don't generally put a lot of stock in zillow's zestimates, though.Regarding the county listing your place as a 2/2.5, was one bedroom added without a permit?

Hello everyone! I'm new to the BG family, and have learned so much from all of the articles and forums. I'm analyzing my first deal, and wanted some opinions.I'm looking at a 6-unit building, with 2 efficiency's and...

Many years ago, stock investors pay hefty commissions to brokers.

You can skip that deadly cycle by deciding you're going to act.Information is power.

I doubt too he's going to have any stock offering, I have no idea how you took it there unless you just wanted to make a point us to your situation, good luck on your IO!

I put a lot of stock in their references, especially from previous landlords.

Jeff,I created a self-directed 401k and then "directed" the funds to be invested in buying the stock of a C-Corp I set up.