All Forum Posts by: Gentle LeBrane

I also am not using a bank. O am interested in private lending. I have seen some with interest rates at 3-5% so i was using the 4% as example. I plan on purchasing home with loan and paying it off with either my rental or personal. The goal is to have rental pay it off and to net an income. I just want to be sure im looking at it correctly.

on his page

So for repairs i need private capital? I was thinking i can get loan for my properties and pay back over time. Made sense that way for someone with no investing capital. So what is meant by " generally no loan would be used..."

thanks u all. Ok...well i am trying to understand the formula. My apologies. When i researched it the title is: Rental cashflow evaluation. Im thinking this is a formula to make sure you purchase a good cashflow deal right? Im working to wholesale and buy and hold. I want to purchase so i can rent/landlord. In my case i will havr to either wholesale to earn my capital..or i was going to take a chance and see abt a loan. But i was considering the ones with low interest rates.  And im hoping i can buy with little to no repairs. However im looking at it as though it would need repairs. Please help someone. I have been working to understand the numbers for a while and was actually excited thinking i have it. Lol. I appreciate any and all advice. 

Good morning all, i have been learning numbers and im finally understanding a possible good deal. Would like some insight as to if im correct or on to a good start with where i am at. Thanks in advance! 

Mock example deal: 

Asking price:20k, ARV 100K, Rehab 20k (my question is here too), rent income 780.00, desired cashflow 150.00(looking at the asking price as though it were a 5 unit multifamily-so counting rent for 1 door)

Rent 780 minus: cashflow 150.00, proptery mgmt @ 10% 78.00, maintenance @ 5% 39.00, vacancy factor @8% 62.4, collections mrkt@10% 78.00 total max pymt 372.6 minus:

Im guessing home insurance @ 54.17 / month and taxes @ 67.5/month (of course guesstimate for learning sake)total to max pymt of 250.93 i then take this number and figure the loan amt into my loan calc at rate of 4% (bc i have seen some lenders advertise 3,4,5% loans) came up with loan amt of 52,560.11 then subtract rehab of 2k and closing of 2k and have max offer of 48,560.11

Now i understand the math better since i researched a walkthru. However, i would like some advice on if im looking at it right bc im getting ready and an more comfortable with seeking a loan to nab my first acquistion and am excited but i want to be sure im understanding the numbers correctly and thoroughly. So in my opinion i believe this deal has some good skin and would be profitable. What does one with hands on experience think? And abt the Rehab price in beginning and end. My question is if i did my max offer at the 48 then what was the 20k for in rehab at beginning? I understood the rehab figure at end. But. Was lost at the figure at beginning. Like is that figure that the seller did or the rehab i have to do? Im looking at it like whn the math is done and u subtract the max offer from closing and rehab cost thats it ..im not seeing why the 20k would be there. Again thank you all for any and all clarity. Im really anxious to start but i dont want to be ignorant. 

-Gen

Hi,

I too am new, and I can say this...

Just make sure that you learn as much as you can. I have been studying for about 3 months (took a month 1/2 break-personal reasons) and so far, I have been able to market some properties as well as look for properties for some buyers. Now grant it, I haven't closed anything yet, but the fact is, this has allowed me to gain some experience and learn along the way. I am actually going to take my time and try to be patient and get my RE license first this coming year and try to see about wholesaling in areas like Texas, Wisconsin, N/S Carolina, Colorado and Florida. However, these areas are not etched in stone yet.

My personal goals are to find out more in depth on what I'm doing and try to figure out what my "niche" is. Along with this, I plan to at least acquire one property here in my home state and one in Texas. As my hubby and I plan to move Texas someday in the near future.

If anyone has any advice on how to work towards acquiring one piece of property to rent out without compromising our lively hood, then I would so love to hear from you!!!!!!! I am very motivated and am an excellent worker as well as student.

to all the above posters: Great advice! I enjoyed reading them!!!!!! As they benefit me too! :-)

And to the OP, I say, continue to learn and you will do great!!!!!!! Yes, we may not make money asap, but I tell you this, the more action we take, the closer we are actually getting to someday closing a deal!

Take care!

~Gen

Welcome to the both of you!!!!!!!

Wishing you guys the best on your investing journey!

~Gen

Thank you all for the warm welcome!!!!!!! :-) I am super excited to learn more each day and hope to soak up as much on this board as I have on other sites. I'm reading a few books myself, but sometimes it's draining b/c I work during the day and such...but it's worth it and I'm just trying to find my "niche" at the moment. Again, thanks for the warm welcome and stay blessed!

I'm really excited to be apart of this community!!!!!!! Like I stated in my profile, I have been learning about REI for about 3 months now. I have truly learned so much on my own and have had the opportunity to network with people from all over. As a matter of fact, that's exactly how I found out about this site. A friend of mine from Wis (who I met through networking), told me about this site. So I made sure to join as soon as I could.

Again, it's a pleasure to be apart of this community and I so look forward to learning and making some deals happen with some of you!!!!!!!

Until then,

Take care and stay blessed!