All Forum Posts by: Bob Razler

Hello @Leonard Mitchell .  

I highly recommend connecting with @Kim Meredith Hampton .  She is a great source of knowledge and deals in Orlando.  A valuable member to your team.

Bob

Disappointment builds character.

Hello:

Well, as I am sure you gleaned from RDPD, start living below your means to save up as much money as possible every month.

Also, wholesaling is something you can do with very little money (although it's not easy and you need to get some advice).  Maybe you could find a wholesaling mentor here or at the meetings.  They might be willing to take you under their wings on a deal in return for work on your part finding them/working them/etc.

The same mentor plan could work for other types of deals.  You offer to work in return for either learning, partnering or both.

Bob

Hello:

There are lots of options. I recommend finding the local real estate investors meetings near you. Check the FLORIDA forums here and try the MEETUP app for your phone. If you enter REI as your interest you will get all the local meetings.

There are great people at those meeting who can advise you and give you lots of great ideas on how to proceed.

Bob

Welcome @Nick Peraino !  

Congrats on your decision.  ABC's & RDPD are both great books.  I also highly recommend LOOPHOLES OF REAL ESTATE.

You have plenty of options to start investing, even with little or no money.  You will find plenty of info here!

Bob

Hello @Mearl Davis .  

Your best option might be a limited partnership (LP) where you are the general partner so you can have full control.

Be warned that the GP can be personally liable in some circumstances so you may want to create an LLC that you own to serve as the GP.

Then you would have a partnership agreement which would spell out the agreement of the parties and rules for operation.

As mentioned above, it's best to consult an attorney who specializes in RE for all of this.

Good Luck,

Bob

Hello @David K.  

Nothing wrong with passing on a bad deal, but did you try offering $202k?

Bob

Hello Tim:

Feel free to give me a call.  Would love to chat about it.

Bob

Hello David:

Sorry, I didn't see your response.

I was using 50% as a rule of thumb.  Just take the rent and multiply by 50% and use that as a rough total for expenses in addition to any debt service.

The numbers you have above yield total expenses of $33,575 (59% of rents so the rule of thumb isn't needed).  Add to that $18,804 in debt payments for total expenses of $52,379. You don't have parens around maintenance.  You might want to double check your sheet to make sure it was counted as an expense.

Total income is $56,760 + $1,200 = $57,960.

Annual projected NOI = $5,581 or $465/mo.

You are putting $68,000 down and let's assume another 3% in closing costs of $10,200 for a total cash in of $78,200.

That makes it a 7.14% Cash on Cash Return.

If you want a 12% COC you will only want to put $46,508 in. If you are putting 20% down that would yield a purchase price offer of around $202k.

Make others can check my math to make sure I got it right in my post-hurricane haze.

Bob

Hello @Kit E.  

Yes, the Miami-Broward-Palm Beach markets are tight. It's not easy finding deals and they probably won't be on the MLS.

If you are looking for distance investing you may need to look to other markets here like Tampa, Orlando, JAX, etc.

Bob