All Forum Posts by: Nick Connor

I don't have the flashy advice as some of these seasoned vets on this forum, but I'd say the key to acquiring more properties is LEVERAGING. You need to know how to leverage your assests.

If you have these 4-5 properties you speak of and generate cash flow and have a decent amount of equity in each property, you can than start leveraging these properties to secure future investments.

Most if not all private lenders are going to secure the loan with something anyways. Equity and Cash Flow is very appealing to a PL.

Ok, I'm not sure to many people are following this thread but I've come across an article I found on the net, that describes some of the benefits of donating land in MICHIGAN. Granted the article is 3 years old, but I assume not a whole lot has changed.

http://www.24-7pressrelease.com/press-release/can-you-get-tax-benefits-for-donating-to-charity-16089.php

This is the part that spikes my interest because I own this property by a LLC and haven't owned it for a year.

What do you make of the first sentence in the first paragraph in the quote? Do you get 10% of the net profits of the chartiy for the next 5 years? Aren't charities usually nonprofits? I must be confusing myself on this...

I'll have to look into this a little more as I'm a noob about this whole process. If I'm following you correctly, would I generate a lease agreement and then turn around and donate it? Also, what benefits would I have doing this other than still owning the property, pros and cons?

What would the pros and cons be in general for donating land to a charity? My intial instinct was that I love the concept and would like to be a part of redeveloping a community so to speak, but on the other hand as an investor, I like to think whats in it for me. Is it wrong to think that way? I want to make sure I'm covering all the odds and ends.

Jon is 100% right about his analysis! You have to make sure you account for some of these fee's that are so commonly forgoten about after purchasing a piece of property. Over looking those costs could end up breaking your deal entirely, esspecially carrying costs unless your investor is only going to be charging you interest on the principle w/o making monthly payments, which I'm assuming is not the case.

Also, I'd even account for some reserve cash aswell for your rehab costs, I usually do 15-25% depending on the size of the job. From the sounds of your budget of 10K you probably are only doing cosmetic work and maybe some other minor work to the house, but if it turns out that you have a leaky roof/broken furnance/busted pipes from improper winterization, then you could be looking at draining all the equity from the house that made you buy the house in the first place. If the numbers can work out as in Jon's example than I think you'd have a pretty solid plan and YES you should start seeking out lendors for your refi asap. That could be a process itself.

Good luck!

Has anyone ever donated land to a charitable organization before via 501(c)(3)? I recently bought a piece of property that is located behind my rental property for 8K with the idea of possible building a four plex on or making carports and charging tenants to use.

The property is long and narrow and is sorrounded by housing on three sides, like the middle of a "U". Someone in the n'hood asked if I'd be interested in donating it to a local university to teach people in the community to grow their own food. iIt would be used as a communtiy garden.

They had also mentioned something about obtaining a property via community land trust?

Anyone have feedback in regards to this? All help is appreciated...

Jon,

Would you mind telling what formula you use when calculating the monthly payment on your example. When I use your numbers, I get a different number.

Sorry tried to post the spreadsheet and didn't quite work...

Help??!!??

Jon thanks for responding to my recent update. The numbers I posted are the rough numbers that I've been receiving so far, with the exception of the gross scheduled rents. Currently I'm getting 1295/month, but we have new tenants moving in at the end of the month with new figures of 1400/month. To answer your other question, 67K is a great value for a duplex in the area, generally the house range from 75-100K for a duplex depending on condition of course.

I'm glad you responded because whenever I'm reading posts and there are numbers involved, I usually see you doing the analytics. I'm a little confused on why you take 50% off the GOI/month instead of the NOI/month. I thought it was calculated off NOI/month,but I must have be mistaken. I've attached a spreadsheet that someone gave me off this website and it includes the actual numbers. The only thing you might find different is the current loan amount of 54,089.22 and the amount down of 10,290. Would you mind taking a look at this and tell me what I'm missing on this? I sure my expenses are off, but I cant figure out why my CF is so high on this spreadsheet.

Ok, looks like some things have changed, how do you add attachments?

Wow, look at all the time that lapsed since I created this post. I've been MIA so to speak from the BP community and thought I'd revist this post to update what I did with this property. Everyone's analytics are welcomed...

Purchase=23K
Down Payment=12K
Rehab=43K
Total Investment=67K
Loan=55K
Monthly Payment=744/month (mortgage, insurance, water, taxes)
Monthly Rents= 1400/month (GOI)
NOI=656/month
Slush fund= 50%, 328/month
Cash flow=328/month (164/unit a month)

Does this seem right or am I missing something? My cash flow is calculated off my 55K loan. Don't I need to include something for the intial 12K invested? ROI?

Greetings,

I was given a general spreadsheet from a friend that he wanted to use for keeping track of the remodeling process. I've been looking for something like this that I could use for me, but the original spreadsheet was vague.

I've attached a modified version of this spreadsheet and it has been sitting in my computer this way for quite some time because I haven't found the time to put the formula's together.

Could I please have someone take a look at this a see if they could help put the final touches on this. This will help me immensely!!

Thanks for your time!!