All Forum Posts by: Norberto Villanueva

Buildium incorporates tenant screening and more into their platform. 

A retail broker for the majority of a 14 year career in real estate, I'm here to say all analyses are not created equal. Using the typical sales comparison approach to analyze a "3 bedroom 2 bath", forever home you know, where one creates a CMA based on what similar comparables have sold for to determine what it's worth, is a world away from analyzing the exact same investment property across the street, both for the very different buyers and the real estate professional involved.

Take cash-on-cash return. A brief snapshot in time, not only is it a concept that doesn't even come up with the typical home buyer, it also fails to provide a complete assessment of the situation. Because it is simply a ratio of the property's annual net cash flow and the initial investment, it does not consider the changes in equity that happen with amortization, one of the most salient aspects of investing in real estate, unlike what is obtained using a cash-on-cash return with equity analysis.

A reasonable client recently rejected a potential deal based on the disparities that exist between what an online buy and hold calculator showed for cash-on-cash return versus my analysis, which showed a 4% improvement in ROI by taking principle reduction into consideration. So what appeared to be a 6% cash-on-cash return in the calculator referenced was actually a 10% cash-on-cash return with equity.

There's an excellent article on the subject here: http://www.realestateanalysissoftwareblog.com/2011....

Taking property management, maintenance and other factors such as principle reduction into consideration, the models and pro formas we use to analyze potential real estate investments provide a cash-on-cash with equity analysis which, in my humble opinion, is a real world analysis of each and every investment scenario.

Happy investing.

@Account Closed - Thanks for posting. The reasons you cited for questioning Pueblo long term's sustainability are strong deterrents in any market. Albeit at a much higher price point, the Colorado Springs market is running strong and appears to be a much better prospect for the long term gains of the turnkey, buy and hold strategies you mentioned and on which we're focused. Check out this event on August 16th to learn more. https://www.biggerpockets.com/forums/521/topics/340096-real-estate-investment-hour-colorado-springs. Please feel free to connect.

Real estate investing = affording to send your child to college. Real estate investing = hitting your retirement goals. Real estate investing = ____________. You fill in the blank!

Whether you are a new investor looking to get your start or a seasoned investor looking to either grow or diversify your portfolio, real estate investment expert Mike Hills will provide value as he shares his success story and explains how you can get there too.

To learn more about REIH, visit http://www.realatlas.com/invest/real-estate-investment-hour/. To RSVP, please visit http://www.meetup.com/Real-Estate-Investment-Hour-....

Did we mention it's a FREE event? Food and beverages will be provided. Free parking is located onsite.

@Becky C. - What good are boots on the ground you can't trust, especially when you are not in the area? Definitely need better property management in place. Give @Nick Mertens a call. He'll take good care of you and your property!

The bottom line is tied to market conditions, so get market rent. And it's possible to get $1,000+ for a 1 br in limited areas. Mostly in the NW, of the six in the last year, all leased within three weeks with the exception of one which took six so, get it!

@Trevor Kolb - Congrats!

Nathan said it right, "don't buy for appreciation". You make your money when you buy. So if you are buying for cash flow, make sure to factor maintenance, sundry expenses including management and other fees, not just acquisition costs into the equation. Appreciation is just the icing on the cake, the atta boy for a job well done.

Buying in the various "hot markets" can be a fool's errand without a strong local team in place so learn the game in your own backyard. Where I agree with Elena's assessment of the Denver market, Colorado Springs presents infinitely better buy and hold than flip opportunities, especially on the MLS.

Anytime Pinaki. Please let me know when I can help with your REI needs in Colorado Springs.

@Pinaki M. - Thanks for posting, Pinaki. With an average sales price in the $290k range, a median price in the $260k range and average days on market hovering near 30 days, Colorado Springs definitely demonstrates a stronger upside potential than the Denver market. Whatever you do, make sure to align yourself with a local real estate professional more in tune with hyper local market conditions. Generalities have a way of decimating what might appear to be a meaty deal.