All Forum Posts by: Frank B.

Your lender will require flood insurance. Flood insurance policies are issued by FEMA, and you should be able to get a quote and a policy through any insurance broker. The premium on the policy depends on what type of flood zone you are in.

The FEMA flood maps can be found online, but they are not updated often. If you are near the edge of a flood zone, it is sometimes possible to have a survey done and have your property removed from the flood zone. Obviously this does not reduce the risk of a flood, but may remove the requirement from your lender for you to buy flood insurance. You can buy flood insurance on any property, whether it is in a flood zone or not.

You should really talk to an insurance agent to get these details. If your agent doesn't know about it, you should find another agent who does.

1 Vote

Are neither depreciation nor capital expenditures considered in a cap rate?

Doesn't that mean the costs are represented as nothing will break and need to be replaced. Like...ever...?

0 Votes

making a larger down payment gets you a return of whatever your interest rate is.

eg if your loan is a 5% interest rate, you will get a 5% cash on cash return from your extra down payment. Personally, I would rather invest that cash in the next deal and make greater than 5% return.

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Sounds good--I'm in.

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@Paul Choate

Shoot--that is the one day this month that I'll be out of town!

Are you thinking 4th Tuesday for future meetups? I can add it to my calendar.

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If you sell it at 70% ARV - rehab cost, you can probably find a buyer.

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Originally posted by @Brian P.:

Derek gets the grand prize. The investor I mentioned wasn't the only one whose returned mail led me to deals. The harder they are to find the better or someone would have found them before me, but most quit looking very quickly, I have had a few that had no idea they even owned property and were about to lose it at the upcoming property tax sale.

That is interesting indeed!

How do you end up finding their contact info?

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Originally posted by @Brian P.:

My personal experience is one out of every five pieces of returned driving for dollars mail has led me to a deal. If I hadn't recently decided to really retire (60 years of habits are hard to break), I would offer to buy your returned mail any day.

What do you do with returned mail that leads to a deal?

0 Votes

Originally posted by @Roy N.:

@Ayodeji Kuponiyi

Didn't you get to suffer through my soapbox about CAP rates on an earlier thread?

Your rate of return ~~should~~ ... no, *must* exceed your debt service costs unless you want to be a Greek tragedy.

BTW: your rate of return is the CAP rate if you purchased the property w/o leverage (read: all cash) ... which means there would be no debt service (interest expense), so your CAP exceeding your interest rate would be a certainty.

Do cap rates consider capital expenditures?

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Originally posted by @Brian P.:

Wow, returned mail, you just said one of my favorite phrases. I once had a investor really upset at the return mail he was getting and what it cost him. I said would you feel better if I gave you $5 for each returned piece? Yes he said, OK I said and we had a deal. I would guess each of those $5 bills returned about $500 to me. When I told him that he just said I wanted to cancel our deal and if I was really making money he would be happy with $10 from now on and his mama didn't raise no dummy. I guess I should have sent his mama flowers and candy on a regular basis.

What?

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All Forum Posts by: Frank B.

Frank B. has started 4 posts and replied 117 times.

Post: Flood zone help needed

Post: CAP Rate

Post: Larger Down Payment for "Cash Flow"

Post: Oklahoma City August Meet Up

Post: Oklahoma City July Meet Up

Post: ROI ?

Post: Driving for dollars - a lot of return mail, any ideas?

Post: Driving for dollars - a lot of return mail, any ideas?

Post: Cap Rate > Interest Rate on Multi-family

Post: Driving for dollars - a lot of return mail, any ideas?