Ron LeGrand was an auto mechanic, Robyn Thompson was a waitress, Dr.

Or are just for mechanicals?

When I personally value businesses, I put most of the emphasis on cash flow rather than revenue.

Its one thing to have competitive pricing and a high degree of service, but I can definitely relate with what Bill mentioned above.When I feel a borrower is highly "transactional," and non relationship oriented I will let my team know to not put too much emphasis on the file because at the end of the day the team and staff have salaries and costs that have been allocated from the bank.As a loan officer for a bank we're rated on our profitability to the company.

And that's just the cosmetic stuff.Then you have the mechanicals -- electrical, plumbing and HVAC -- which can each add $2-5/sf, even if in a house that's in otherwise good cosmetic condition.Personally, I don't like per-square-foot estimates until you become very proficient at rehabbing...when you're new, they're more likely to get you in trouble than to help you.

Then if you know enough about evaluating a building for mechanicals, electrical, and structural issues you may be able then to determine what deferred maintenance figure to use.  

Then when you incur those expenses, I think you will achieve a cap rate at about what you would achieve with an 11.3% cap rate in a nicer area.I see better deals all the time when investors apply for our loans, and we have a mechanism to evaluate the volatility.

Funds are given out in order of: Sheriff costs, property taxes, lien holders (mortgages, mechanical, etc) in recorded order, and finally, the owner, if any is left (pretty rare). 5.

But branching out quickly into direct marketing, once I've worked out the mechanics and have a solid process for financing and management.To maximize the return on time invested, aiming to focus on multi-family properties (2/3/4 units) to allow me to reach my goal with less total transactions (less loans, less overhead, etc).

He said that in Texas, there was a time limit on how long the mechanics liens could be filed, which was different for subs vs general contractors.