All Forum Posts by: Stephanie Dupuis

Zach is a good resource for you in the Seattle area. Just wanted to verify the help you are getting.

Also tagging: @Jon Russell @Fei Guo @Matt Andersen @Brian Sorensen @Suzette West

Steph

I agree with @Tom Goans It is difficult in this era to purchase properties at enough of a discount to create the cushion for those "what ifs" - at least in some locations. So I am creating other ways of creating that cushion (and this is a work in progress). But I hear and follow what Tom is saying. The last "what if" that was experienced was the last RE crash (investors ought to have seen that coming, imo - but that's just me). Other "what ifs" are a local economic collapse, natural disaster that wipes out many of your properties at once, etc. Human nature is to think "this won't happen". Listen, things that typically won't happen "do happen". That's why people watch the evening news - to see what things happened today that typically don't happen.

So, hedge your bets, make careful calculations, diversify your RE portfolio. But, you also need to push the red button at some point. This requires being an independent thinker and ultimately making your own decisions.

Yes. Send me a request and I'll send to you.

Hi Lorin -

You did a better than most job in outlining expenses. It's best to separate out property taxes and hazard insurance in your pro forma. And state everything in annual terms. This is best practice. My sheet looks like this:

GSI = 10,200

Vacancy Rate (@8%) = (-816)

GAI = 9,384

_________

OPERATING COSTS:

Taxes = 1146 *I split your taxes and insurance 50/50, I wasn't sure how this divided out

Hazard Insurance = 1,146

Mortgage Insurance = 0

Accounting/Legal = 300

Repairs/Maintenance = 1124

Management = 1,530 *I account for 15% on management b/c after setup fees, "contract" fees, etc. it adds up to 15%. That's the true expense of PM in my area. They charge 50% to fill a vacancy, 25% to renew a contract and 10% per month. Make sure you add all that up.

Utilities/Water = 0 **are you paying these? Better add if so.

Utilities/Garbage = 0 **are you paying these? Better add if so.

NOI = 4,038

Annual Debt Service = 2604

Cash Flow Before Taxes = 1,434

Monthly Cash Flow = $119.5

CAP = 8% = NOI/Value = (4038/49900)

Debt Coverage Ratio = NOI/Annual Debt Service = 4038/2604 = 1.55

CCR = 7%

Welcome to BP!

Welcome to BP!

Welcome to BP!!

Peer-to-peer lending Podcast 029 - there are amount limits, but some groups may allow high enough limits for you to include repairs.

@Zach Schaar What else can you tell us about Z-buyer. They have some incredible prices in our area and it seems no one is using them. How legit are they? What's with the membership (are you a member)? Do you contact sellers on your own to purchase? Anything else I should know?

I agree with your husband - change to "We Provide Solutions", it's more succinct.

With the tagline, maybe change the color to the Seabreeze blue to a darker gray. Seabreeze blue (meaning the blue you used in your logo with the Sea Breeze print) will help with printing costs and may simplify logo, but check it out first.