All Forum Posts by: Rich Lopes

Do RS provide funding to individual investors - one person just starting out or just to large investor group? I know they reject about 95% of the funding requests so looks like the chances of newbie are pretty slim. Any advice on how to approach besides preparing with all the required docs.

@Chad Hale and @Edward Sittler, Thanks for chiming in. 

Chad, unfortunately, some of those best deals don't stay on the market as much as we would like them to be :)

Edward, I don't want to go into rabbit hole into this and I may be wrong, but it can be also be said that if the Asset Value remains same for a certain period of time and you increase the NOI on a property, your Cap Rate would go up, correct? Cap Rate = NOI / Asset Value. E.g If my NOI is $15,000 for a property valued at $500K my cap rate would be 3.0%, but If I increase my NOI to $30,000 with the property value being same, the Cap Rate would go up by 6.0%. As I understand, NOI can also be increased by decreasing the Expenses (e.g finding a cheaper property management company or decreasing some of other expenses like repairs etc.) and not necessarily increasing the Gross monthly rent or upgrading from carpet to hardwood flooring. In the example above, I can achieve the same cap rate by staying in the same location.  Alternately, Cap Rate would also increase if the Market value of the Property decreases due to some economic factors provided NOI is still same or if the location becomes less desirable (but this would also put pressure on your NOI). Please correct me If I am wrong.

@Account Closed deserves a better deal after all? :)

@Minh Le - Sorry for the typo on your name in the last post and Thanks a ton for such a detailed response.  Will definitely check out the 2 lenders for bridge loans. What kind of cap rate should one expect for the bay area properties? Is 6 - 7% reasonable? I saw some nos. in your second post on this discussion but did not quite understand what you mean by 1% stabilized Rent to Price ratio? Would love see some numbers with examples if possible, please.

@Mihn Le, What is Chase CTL? I am looking into buying my first 5 unit apt complex with an existing tenants and I am looking into different ways I can finance this purchase. Any pointers would be much appreciated!!  

Thanks @Michael S.

Rich from SF Bay. I have been on the Bigger Pockets for quite some time but just getting serious about RE Investing. Would love to connect some of the folks around SF Bay Area and beyond and hope to learn from all the BP experts. Thanks!

@Dave Foster, Thanks! I like #3. Yes, I understand the deductions are not 1-1 but that would still be huge considering how much I pay towards the rent. I agree on the Rental income and how it helps pay down the principle, hence selling is not my top priority. 

Thanks @Tim Puffer and @Michael Vallee. 

Tim, I like the idea of 1031 exchange. But with 1031 how would I be able to use some of the proceeds from the sale for my first goal of buying myself a primary home. Buying another cash flowing property in a different market is not something I have thought about and I don't think I am ready for that yet :). But thanks for the suggestion. 

Michale, please do let me know how it goes.

@Chris Mason, Thanks very much for that insight - never really thought from that angle. If I can get the mean or avg. down to 4.2 to 4.3%, I will be all over it. Time to get to work. 

@Samir Pathak, It's a SFR in San Jose. What's FMR?