Explanation of My Spreadsheet
Sunday, September 15
Mortgage Rate - This number is generally about 1% higher for investors than it is for conventional homeowners. So check the rates and add at least 1% to the going rate. I tend to add 1% and round up a bit more. Mortgage Length - Amortize the loan over 30 years if your lender will let you. Even ...
Cap Ex as a Hard Number
Tuesday, November 24
I don't figure Cap Ex as a %. Add up the cost to replace everything over the next 30 years, then divide by 360 and add some padding. That is a safer way to figure Cap Ex.Condos are probably going to be cheaper. As the HOA should take care of most of the external Cap Ex items. You are still go...
Wholesaling from my Perspective
Friday, June 26
Wholesaling is simple on the surface:1. Find an undervalued property for whatever reason2. Get the property under contract3. Sell/Assign the contract to another person (most likely a flipper)4. Get paid at closingWholesaling is not what I would call a rookie level skill. It requires the ability ...
Running comps is a brutal game
Thursday, July 31
The amount of work and information needed goes up dramatically depending on the accuracy you would like. Sometimes the information is simply not available within the geographic range you would like. What drives up a price significantly in one region may have a net zero effect elsewhere.Schools ...
5 Cheap Ways into Housing
Monday, June 02
0% Down: NACA (https://www.naca.com) VA Loan (http://benefits.va.gov/HOMELOANS/index.asp) Rural Development Loans (Renovations MAY be included) (https://www.rd.usda.gov/programs-services/single-family-housing-guaranteed-loan-program) 3.5% Down FHA (ht...
Starting Young?
Tuesday, May 20
Welcome to BP. You've come to the right place for information on RE investing. A few Suggestions: 1. I'd go to work for a contractor this summer. Haul lumber, pound nails, sweep and do all the junk that hired labor does. You'll be right there in the thick of everything while the building ...