Paul Stamm
Creation of LLC for Real Estate
3 January 2023 | 21 replies
Your basic insurance policy with $300,000 in liability coverage should be sufficient in 99.999% of all lawsuits.5.
Pratap Koppula
"Uncovering the Financial Health of Assets: The Benefits of Financial Due Diligence"
18 January 2023 | 0 replies
It can be an absolute value or expressed as a % of sales.2️⃣ Capitalization Rate (Cap Rate) 💯 : This is the ratio of 'net operating income' to the purchase price (market value) of the property🔝.3️⃣ Cash-on-Cash Return (CoC) 💯: Cash available to Investros divided by Cash invested 🔝.4️⃣ Net Present Value (NPV) 🔢: NPV measures the present value of future cash flows generated by the investment, taking into account the cost of the investment 🔛.5️⃣ Internal Rate of Return (IRR) 💯: It is the rate of return that makes the present value of the future cash flows from the investment equal to its initial cost 🔝.6️⃣ Sales multiplier ❌: Sales multiplier is a key performance indicator used to measure Price of the asset in relation to assets sales, particularly in the rental and hospitality 🆗.7️⃣ Rent per Square Foot ➗: It is a Key Performance Indicator used to measure rental income, per squarefoot, often popular in CRE ♊ .8️⃣ Debt Service Coverage Ratio ➗: It is a measure of a property's ability to generate sufficient income to cover its debt obligations (Cash available for Debt divided by Loan installment) ⁉.9️⃣ The interest coverage ratio ➗: It measures a real estate asset's ability to cover its interest payments (Asset's net operating income (NOI) divided by Interest. ⁉.🔟 Debt-to-Equity Ratio➗: A measure of financial leverage, calculated by dividing its total liabilities by its shareholders' equity ⬇.
Chris Mason
*HUGE* "house hacking" mortgage guideline change in pipeline
10 August 2019 | 46 replies
Normal Freddie Mac property standards.No FHA "self-sufficiency test" that kills transactions at the last minute.Underwritten and funded in-house, no send-off to an outside Agency for approval.That's all great, but the problem that frequently came up is historically (and for the next 2 months) you couldn't own other real estate.
Rich Bultema
Selling house with ungrounded 3 prongs.
19 January 2023 | 5 replies
If there's sufficient interest in your house, the buyers might overlook the issue despite your disclosure.
Hoa P.
Income verification after HELOC approval
9 February 2019 | 3 replies
They won't care if the income source has changed, if its sufficient and seasoned.
Val Lemoine
Which Brokerage to Choose as an Investor-Agent
21 April 2016 | 4 replies
The mindsets of residential and commercial brokerage are sufficiently different that being in a commercial setting is worthwhile.
Anthony Barbato
Analysis of a fourplex
29 December 2019 | 6 replies
You should also consider that FHA 3.5% down requires meeting the self sufficiency ratio.
Skyler Walker
How do I let applicants down, sincerely and professionally?
4 August 2019 | 36 replies
We try to answer all of these as professionally as possible but usually that is sufficient.
Mehran K.
Insurance Advice: $1MIL Liability Coverage - Do I need an Umbrella Policy?
14 January 2014 | 10 replies
Are these limits sufficient?
Scott Braden
Salvage vs tear down and haul off?
1 February 2023 | 8 replies
But it is very unlikely that there is sufficient value to reduce the demo costs more than maybe $500 or so on something like a single wide MH.