All Forum Posts by: Danny Webber

It bothers me somewhat to see new investors asking if they should buy a deal or if a deal is good for them. 

The short answer from my perspective is: How would we know if a deal is good for you? 

I understand the need to ask if a deal makes sense based on assumed numbers but you really need to know if the deal makes sense for you. The only way to know that is if you answer the following questions. 

1. Why do I want to invest?

2. When do I want what return?

3. What assets do I have to invest with? (time/money/expertise)

4. What is my risk tolerance?

5. What investments fit my short/long term strategy?

6. Who can I call when I need more guidance?

These are just some of the questions you need answered prior to investing. If you know these answers you will know whether a property is a good deal for you.Investing based on a plan makes more sense than random deal acquisition.

What other questions am I missing folks? Does this make sense?

Danny

There are many more variables that you need to consider.

hold time

cash flow

down pmt

maintenance/vacancy costs

Ins cost

HOA

Taxes/MUD/PUD

Your short/long term strategy

Assets/income

+ lots more

Newer homes usually equal less appreciation/cash flow for a number of reasons.

Find a mentor. That will save you lots of money and time.

find an agent to help you

Focus on bottom line more than top line. You can have a 100 mil portfolio and be losing money monthly.

Going to be a weird market over the next 3-6 months. It could go either way. 

welcome

I would run the numbers on cost of capital borrowed versus new note acquired vs possible return on multifamily. A lot of MF does not provide monthly cash flow up front. 

Who Dat Nation!

I would budget for a new system. If the current one breaks chaos could ensue.