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10 December 2022 | 4 replies
Plugging an average 30% management fee into the two examples above, the first owner would see his or her cashflow drop to about $8,000 per year (10% cap and 24% cash-on-cash return), while the second owner would see his or her cashflow go slightly (~$300) negative (6% cap and -1% cash-on-cash return).In contrast, if I were to approach an investor with an idea of a 50/50 JV agreement, where they put up the capital, I take no management fee, and we share equity and cashflow 50%, the first owner would see cashflow of $14,250 per year (38% cash-on-cash return), and the second owner would see cashflow of $3,500 per year (10% cash-on-cash return)--both significantly better than hiring a professional manager.Of course, in the second scenario, I would end up with less cashflow than I would managing the same property at 30% ($14,250 vs. $19,500 for the first and $3,500 vs. $7,200 for the second), but that's OK with me because now I have equity in the property (with a potential infinite rate of return if and when the property is sold).The question:So, would something like this be an equitable arrangement?
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24 November 2022 | 21 replies
Drop the books, drop the podcast, get out in the field.
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26 August 2022 | 20 replies
I’ve never had a drop in demand for my rentals over that.
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31 January 2022 | 48 replies
Many banks have dropped the seasoning requirement a lot.
21 August 2014 | 21 replies
That percentage (and/or the list price) will likely drop over time.
5 May 2020 | 2 replies
I tried dropping his number in the comment, but BP flagged it.
18 September 2014 | 71 replies
And I'm certainly willing to drop any errant thinking.So I'd appreciate it if you could give me some example of how you would approach a potential investment.
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4 December 2022 | 4 replies
The value of his portfolio dropped $500,000 in the last two years.I started investing in real estate in 2016.
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9 January 2021 | 8 replies
I know a few real estate investors who have "forgiven" rent, and others who have dropped rates in hopes that tenants pay.
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11 September 2022 | 43 replies
I have recently paid off my loans for my rental properties and I'm starting to accumulate cash (I took it out of the S&P 500 ETF when it was at 3300, now at 2300, predicting this massive stock drop would happen **pats self on back**).