Updated over 2 years ago on . Most recent reply
My business Model
So I've been operating my real estate business for going on 7 years now. My business model is as follows I'm a motivated house buying company and I buy properties in distress or turn key properties and any situation that i can add value to. I'm up to around 52 units. Call it 44 single family homes and 4 duplexes. I have 3-4 contractors i work with on a steady basis, mait guys and have 3-4 rehabs going on now. I just trained and hired a property manager about a year ago after I got up to around 40 units. I grow at a pace i really cant show income so my local banks wont work with me anymore and they move slow also. I do this full time now and I have been using hard money lenders to finance my properties and the money to do the bridge loans and I do cash out refinances and 30 year fixed long term loans with them. Its really becoming a large operation and its going well i hope so. Sometimes i feel im robbing peter to pay paul to keep up with the business model. I create a lot of equity but not much cash flow and especially with how the rates have went up. I try and hold as much as i can if i cashflow even just a little but and i take the equity and keep purchasing. It gets nerve wracking but any advice would be greatly appreciated or if im doing this correct or not. Some of the properties recently not much debt gets payed down at all with high interest. Would be nice to refinance my portfolio into better terms somewhere or sometimes i want to sell alot. I do 70% ltv with kiavi and lending one. so i sometimes feel i dont over leverage myself. I will post numbers of my portfolio now. Any help is greatly greatly appreciated. Thanks everyone at BP
my portfolio numbers alot of the mortgage should have taxes and insurance included. Most of them.
I need some help analyzing my business model and for you to look at the following with a critical eye. Am I running this business correctly? Any potential pitfalls that you see that are alarming?
Any advice, etc would be appreciated! Thank you in advance.
Total Project Cost$2,990,776.00
After Repair Value$5,325,000.00
| Total operating expenses: | $27,805.52 | ||
| Mortgage expenses: | $22,996.48 | ||
| Vacancy: | $2,812.45 | Repairs: | $2,812.45 |
| CapEx: | $2,812.45 | Water & Sewer: | $2,840.00 |
| Garbage: | $2,840.00 | Insurance: | $3,875.00 |
| Management: | $4,499.92 | P&I: | $22,996.48 |
| Property Taxes: | $5,313.25 |
$56,249.00MONTHLY INCOME
$50,802.00MONTHLY EXPENSES
$5,447.00MONTHLY CASHFLOW