All Forum Posts by: William G.

reminder for tonight’s  6pm Meetup with Ben Leybovich.  We’re meeting at LMHQ located at 150 Broadway, between Liberty and Cortland.  Please bring ID for the door and exact change of $10 will be appreciated!  See you tonight! Luisao hope you can make this it's tonight William gentile Will write more later Got to run

Yes Tom,  I am,  the question is academic - I wanted feed back,  I recently  discussed  this topic with a few friends and I was surprise to learn some would simple take a wait see approach.   what would you do?

William G

Hi all

On the verge of purchasing my first real estate investment property, I am going the route of fix and flip, purchasing a single family house from a wholesaler, as a pre-foreclosure, and sold as is.

It appears to be a great deal with a very good return on investment, I plan on keeping tight control on the repair cost and scrutinize everything. 

There are several big tickets upgrades,  the addition of powder room / breakfast nook,  and  200 amp electric service.    Question:  should I investigate whether these items were properly permitted,  inspected and closed out??  what is my responsibility

Thank you for any insight you  provide

Welcome to bigger pockets-

I was also looking to southern NJ - particularly Penn's Landing, the prices seemed right, I got in touched with the zoning and building departments - code official made me aware that the property was in a flood zone, this is important, after Sandy, all low laying properties are subject to a new FEMA flood designation, most times this requires raising the floor level, as in my case (I can't remember to what height). This property had three building on the site, each requiring major renovations, but not raising the floor elevation would result in additional flood insurance. I only wanted to enlarge and renovate- but after talking to the building department, and analyzing added cost to comply with the additional property restrictions, flood insurance and engineering cost- the ROI was not there, so I passed on the offer.

William Gentile

Originally posted by @William G.:

@Owen D.

I have heard many an investors say a $100 a door is a good deal, but I can now see it certainly not without including a Cap Ex along with your PITI " To be fore warned is to be fore armed".

thanks for the heads up and good luck.  

@Owen D.

I have heard any a investors say a $100 a door is a good deal, but I can now see it certainly not without including a Cap Ex along with your PITI " To be fore warned is to be fore armed".

thanks for the heads up and good luck.  

@Jordan T

Jordan, thanks for your response.

I agree it's pretty simple when you break the big numbers down to the smaller manageable sizes and make assumptions based on industry standards i.e. 50% rule loan-to-value 80% etc. (However I don't understand how you relate 7% to 38% of NOI).

I expect to make my first multifamily commercial deal next few months, by practicing with these numbers and formulas, i will have the confidence to know my numbers are correct and if the deal is great,  good or bad.

thanks again - William

@Kyle A

Hi Kyle, thank you for your informative response. What they say is true , you learn by doing, now with some examples provided, I have a stronger sense of how to make  use the information provided in a listing. Going forward I  plan to practice  analyzing a listings at least once a night, so the process become second nature.

There are several terms that I don't know where they fit in the process i.e. GRM, IRR. Cap rate, for example You mentioned a GRM at 8, what does that mean and how do you calculate that number.

I totally agree, I don't need to start  with a project of this size,  $1.6 Mill Is way beyond my capability, and frankly I did not believe it was a great deal from the start.

William

I am looking for multifamily commercial property, of 12 units or more. I found listings basically give limited information about the property, such as a listing in Pennsylvania, 16 unit for 1,600,000 the ad proceeds to it for me that the property has a 7% cap rate, with an NOI of 181,800, at 99% occupancy. From this information could I quickly analyze whether this is a good deal or something that I should pass on? I fully intend to acquire with the realtor additional information about expenses and taxes that rent rolls etc. etc. but I was just wondering if I look at this number or these numbers would I be able to tell if I'm wasting my time.

@Robert Zuccaro

Trust yourself,  if you truly believe you're helping people with their problem,  and that you are making a difference for yourself, your family and your community,  there is no reason to listen anybody else's opinion,   and those opinions speak more about a person saying,  then about you.  

You need to work with a investor attorney, asked the questions up front like  "are you an investor in real estate"  "do you understand investing"  if the answer is yes, then, that's someone  you want working for you