All Forum Posts by: Derek Kirkwood

I have the same questions as Tim. For something this short term I would just do ROI which is the profit divided by the investment (all of your costs). 3k/40k is 7.5%. Thats a really great ROI for 43 days.

I'm not in the seminar business so take this with a grain of salt.  

Have you looked at https://revivalbros.com/ipa/ ?  Sounds like what you are describing.  If you have not seen that before that might give you an idea of what your would-be competition is doing and what they are charging.  

I can only speak for myself. For me I would need to go through all of your code/formulas so I understood how it works and verify the math is done right.  I would not be able to just plug in numbers and accept the answer that it gives (with anyone's product).  I would probably spend as much time trying to verify the model that you built that I could build a model for myself in the same amount of time, so a paid service will never work for me.  That being said there may be a market for it.

@Patrick Sears  If I'm understanding everything correctly "1/2 the note for 1/2 the payments" and the others are just rules of thumb for pricing a partial.  She is suggesting if you want to sell half the payments then a ballpark for that would be selling that for half the loan balance.  

But you can negotiate any amount you want.  Seems like the easiest thing for you to do is start with the 12% you said you would be willing to give as yield and offer that out to investors.  You and the investor can then separately decide how much of the note they want to buy at that yield (how many of the remaining payments) then just calculate what they would pay you for it to be a 12% yield to them.

I think you already understand this, but just to be clear: there are "straight" partials (they buy the next X payments and after that the note reverts back to you for the remainder of the term) and there are "split" partials (they are buying a fraction of all the rest of the payments).  In either case you can easily calculate how much to sell it for to achieve the yield you both agreed to.

Roman covered the typical broker fee.  Other than that there is not much in terms of fees for the transaction itself.  If you are buying directly from the seller its as little as what your bank charges to do a wire transfer.  It's not like buying a property where you have thousands in closing costs.  The real costs are the ones Chris explained.

At least in some states the deficiency judgement attaches to any properties they buy in the future.  This would be the only reason I would go after one.  But even then I think they can be wiped in a bankruptcy.  If anyone has experience with deficiency judgements I'd love to hear about it.  I've been wanting to learn more about this, I think its a great topic.

@Chris Seveney Agreed. I'm a big fan of MIRR since it allows you to specify reinvestment return rate and finance rate. Much more realistic than IRR/XIRR. I've always wondered, why does excel not have a function like XMIRR already??

I don't think its unreasonable at all to spend the time making your own XMIRR, I think its great!  But maybe that means I have a problem too...

Check out the XIRR function in excel.  Thats most appropriate for scenarios like you just mentioned

@Logan Turner. IRR assumes the cash flows are regular and always positive. XIRR gives you total flexibility and does the math correctly. In your example you have a huge outflow in the beginning -70k, then more outflows as you do the rehab, then eventually regular payments coming in. Simply make one column for all the dates, then the other column for all the actual cash flows in and out. Then reference them in the =XIRR(). This gives you your actual annualized yield.

fiverr.com has lots of logo designers.  You can try several for not much money and continue working with the one you like best.

I really tried to make Xero work, but its just not quite there yet in my opinion.  Switching to quickbooks desktop.

If you're just needing a one-time lookup (not searching for people on a regular basis) the whitepages.com reports are pretty good.  I think they are around $20.  Should get you any phone numbers they use, but if they are intentionally hiding it might be impossible to find.