All Forum Posts by: Daniel Eisman

@Grace Porritt-

I would be interested in your meetup group! I love the idea of connecting with other local investors and helping each other find solutions. Also, there is a BP networking event that takes place the first Monday of every month and can be found here- Meetup. 

Please let me know if you would like to connect sometime and discuss a meetup. 

To find GRM I determine what comps fit best for my subject property then analyze those comps and determine an average GRM based on that.

Example using arbitrary numbers-

If comp A sells for 100,000 and has a GOI of 10,000 then the GRM is 10.

If comp B sells for 110,000 and has a GOI of 10,000 then the GRM is 11.

If comp C sells for 120,000 and has a GOI of 10,000 then the GRM is 12.

Average those together and get an average GRM of 11. As I said before it's important to note certain limitations when using this multiplier.

Hey @Matt Ashton welcome to BP!

How's your out of state rental going so far?

What are you hoping to accomplish as far as acquisitions in 2016?

I'm an active real estate investor and invest in the Springs as well as Denver metro. I'd be happy to chat sometime and show you some of the properties I've been coming across and see if they might fit your portfolio. I'd also be happy to share with you some creative financing and loan options that might be able to get you into a property with limited or no capital. I'll message you so we can hopefully connect!

@Robert Thompson,

I suggest looking into using a 1031 Tax deferred exchange when selling your Colorado property. 

Here's a useful article that @Brandon Turner wrote about it- 1031 Article. 

There are some rules you must follow when utilizing this strategy, such as the replacement property must be "Like-Kind", the replacement property should be of equal or greater value, and a strict identification window of 45 days to identify your next purchase, so you may want to have another property already lined up. 

@Ryan Sanders,

I'm not sure what area's of the Springs you are looking at so my data may not be applicable to your situation but for the residential multi I'm currently analyzing I'm using an average GRM of 8.7. This was found by analyzing the data of comps near my subject property. Given a GRM of 8.7 and a GOI on my subject of lets say 30k a month- fair market price of my subject is $261,000. (30,000*8.7=261,000)

If the GRM was the same for the area your duplex deal is in then a fair market price is $168,084.

Gross Rent Multiplier serves to indicate what the market is paying as a multiplier of the gross income. Assume my data is correct for all of Colorado Springs(a grand assumption-make sure you have data that supports YOUR subject) and you can use the GRM of 8.7 to quickly analyze what you should be paying for a property. It's important to note that GRM only takes into account the GROSS income so situations where tenants are paying part or all of the operating expenses will be different from those in which the landlord covers all of the op ex. There are limitations with using the GRM to analyze properties but if you keep them in mind it can be a great quick tool to use to determine sales price.

Hey @Jon Pool,

Welcome! I applaud you for your past success and also on your current endeavors. I too recently took on real estate investing full time and am enjoying the challenges and never ending education. I am extremely interested in the projects you are currently undertaking and would love to discuss them with you further. I will message you to set up a time we can meet, I'm just right down the road from you! 

Hey @Derek Jess, Welcome to BP.

I second @Bryan O.'s recommendation to check out the meetup.

That's great you have some first hand experience working with investors already. That will definitely give you an edge out the gates. I'd love to connect with you sometime and find out more about what you are seeking and hoping to accomplish with your investing. Hope to see you at the next meetup.

Hello @Mike Regnier,

Welcome to BP. This is a great place to build networks and expand knowledge. The podcasts are great and the local meetups are valuable networking events. Here is a link to the next Denver meetup-Denver Meetup. 

I'm interested to know what areas of Denver have you been flipping in and how have you been finding your deals? Also, what types of investments are you currently seeking? More flips? 

Hope to see you at a meetup sometime, would love to connect.

Hey @Scott Trench,

I just attended orientation last Thursday, it is indeed for real. I did take away a few helpful tips and tricks from the speakers, but it seemed like we covered a lot of information that we should already know as agents. 

Hey @Scott Trench,

I really enjoyed the first meetup we had and it actually led to a deal between @Kyle Doney and myself, so thank you for putting that together. It was great meeting other young investors, I vote we do it again sometime soon. Let me know if you'd like help coordinating, I'd be happy to assist.