Patrick Philip
Am I missing something about the math behind investing?
I was just reading a news story about a large real estate firm that bought a building for $154,000,000 and that the building has a NOI of $10,100,000. So cap rate of 6.6%.I know that this firm most always buys with fi...
Katie Koehler
Is the cap rate really a reliable estimate of risk?
I'm new to the REI world and still learning the basics. Something I'm trying to wrap my head around is whether the cap rate is actually a reliable indicator of the risk of an investment. My understanding is that the m...
Account Closed
Sponsor's promote based on Cash on Cash Return instead of IRR?
I know people frequently structure deals with disproportionate distributions to the sponsor to reward them for their performance. Every waterfall model I've ever done has used IRR targets as hurdle rates. This is grea...
Isaac Geller
evaluation of multifamily property
Hi BP!I am an investor from Israel and recently had an offer to join a syndication for a buying of a multifamily unit in NJ. The offer sounds tempting since the group has to finance about 3M$ (the rest comes from a b...
Dan Gandee
Understanding Cash on Cash Return Is Your #1 Priority!
When I first got started in this business my mentor said "Start with the numbers and be an expert at spreadsheets!" Boy was he right...This game is more underwriting than anything. It doesn't matter how much money you...
Account Closed
Which indicator is better? Cash-on-Cash or IRR?
The formula for cash-on-cash is cash flow divided by total cash invested (aka down payment). To my knowledge, it's primarily a single-annual indicator meaning the cash flow is annualized and only for one year, whereas...
Richard Stephens
Evaluate 8 unit complex
Need help on evaluating 8 unit complex in fort worth,tx. All units leased at $500 a month, which owner says low rents and will raise.Building was built in 1970 and doesn't look like any improvements have never been do...
Rick S.
Passive 12-15% Return
What is a realistic return I could expect on JVs in the note space? I am looking for a 12-15% return on $100-400k.
Daniel Smith
Newbie from Los Angeles - where have all the good cap rates gone?
Hello, BP residents! I'm a new investor from Los Angeles (Studio City, to be exact). I'm in the entertainment industry but ready to branch out to REI. Looking to start investing in SFR rental properties in the greater...
Matthew Odou
Where to move and invest if you live in an expensive area?
Hello everyone,
I feel that I’m ready to invest in my first house hacking rental property (2-4 units); I have the $ for a down payment, closing costs, and am going to be using the 203k loan fo...