All Forum Posts by: Gregory Childs

Robert,
If you simply not sure why don't you have a "local" property appraiser do an evaluation. For a couple of hundred bucks you'll have piece of mind and a decent feel for what it should be worth As-Is. Also, give the appriaser a list of improvements you intend to make and get an ARV. Now you have some data to work with. Working with firm $'s in your spreadsheet beats gut feel any day. If the numbers work, do the deal - if not, run for the hills!
TTFN,
Greg

E.

JV allows almost limitless expansion and if you can get someone to put up to 90-100% of the funding the ROI/IRR on your own capital is phenominal.
TTFN,
Greg

I'm curious about a couple things in rehabbing and flipping.
1. What is the average purchase price of the flips or rehabs you're buying?

Between $40 - $150k

2. What is your average time from purchase to sale on
homes?

Generally 90-120 days start to finish

3. Do funds available, limit the # of properties you purchase or are the properties getting harder to come by or both ?

Finding the "correct" properties is by far our limiting factor

4. What % of the properties are financed with borrowed
funds?

None - all cash

5. If you had more funds available at EXORBITANT rates, would you purchase more properties?

Not really - would prefer to JV

6. On financed properties, are you paying interest, sharing a % of profits or both?

NA

7. How many properties have you turned in last 18 months?

22 - since Feb 09

8. What has been your biggest concern or problem with your process?

Consistent volume of "appropriate" properties

There are a lot of ways of evalauting a potential commercial RE deal:
Return on Investment (ROI)
Capitalization rate
Yield Capitalization
Float and Desire
Cash on Cash
Debt Coverage Ratio
Return on Equity (ROE)
Risk and Demand
IRR
Check out the following link (from Paul Stafford) for a more detailed explanation. Pick the ones that are most appropriate for your situation. Then, at a minimum look at another 10 deals (check out Loopnet to identify other opportunities) so you have a base to compare with.
http://www.investment-realty.biz/For%20Buyers/property%20evaluation%20metrics.htm

TTFN,
Greg