All Forum Posts by: Chadd Naugle

@Kris Kaufman Let me know what lender is  going to do this deal please....Thanks Chadd 

I agree with @Anton Ivanov  His numbers are more accurate, and use his rules of thumb.

Here is quick way to analyze....Take the rent subtract the vacancy rate, then subtract 50% This is your NOI....Divide that by the purchase price and this gives you the cap rate....Not that is matters much in single family homes....but it is a good gauge...I don't' buy anything less than a 12% cap....

Cash on Cash return and total returns are calculated totally different, though very important, I don't think it will come into play with what you are doing if you are buying SFH.

NO!  Net worth is useless.  Seriously what does it get you?  The more people obsess about net worth....the more they fear losing it....the more they fear losing it....the harder they try and keep it....and so it goes.... Don't worry about it...focus on growing and learning.  

@Lisa S. Are your tenants really making service calls? You need to determine if it is really the tenants or the property management company that claims "the service calls"...this is how they make their money.  Some...Property managers view property owners as a cash cow,  so just a different angle that you "should" consider as well.

How did you determine the value?(what cap rate)  What is the debt service left on the building? This plus how you predetermined the exit strategy and buy outs when you entered the agreement, will determine what you will get.  Much like @Jay Hinrichs eluded to his post...It really should be spelled out in your partnership agreement.

@Clayton Sneider No I wasn't referring to you specifically, and I think it is important for someone to get their personal finances in order.  However I don't think you need credit or money to get started.   Wholesaling by nature involves neither, syndicating deals involves neither credit or cash to start....but it does require time, effort, and knowledge.  I just don't like seeing people held back...If @Daniel Dadzie has the drive and determine and knowledge he can succeed.  It is just a matter of finding the resources and making it happen.

@Andrea Bosset Welcome....Learn as much as you can, but then TAKE ACTION...This is where most people fail...they never "do" anything.

Best of luck to you!

Chadd

@Gregory Van Heest Forget the credit and work history...cash talks....and I would leverage it....Do some research on Investing in Apartment buildings...Lenders care more about the deal than you personally...They only want your work and credit history, because they want to make sure you don't need the cash flow to pay your bills., and that you pay your bills on time, if you don't have credit you can do a no doc loan, and still get funded. You have enough cash that someone would easily finance a commercial deal for you.

Let me know if I can help you more.

@Robert Khederian I would keep my eye open for FSBO properties, either driving around, Craigslist, how ever you can find them. Then look for something you want to invest your own money in....For example you find a 3 unit, that the owner lives 3 hours away because he wants to be closer to his daughter....he doesn't have a mortgage, but can't manage the property because he is 3 hours away....perfect opportunity to see if he would seller finance. He gets cash flow, and doesn't have to worry about the property management. Win - Win.

It is really just a matter of finding the deals, and then seeing what works.....You just have to make sure the numbers work...I see so many things for sale that are WAY overpriced, and not from a market perspective as much as a cash flow perspective, so be careful and do your due diligence.

@Robert Khederian If you can find a no money down deal take it.....Then spend your money  elsewhere.....Now you have two investment properties instead of one, for the same amount of cash.....Make sense?