All Forum Posts by: Rob Anderson
Rob Anderson has started 6 posts and replied 111 times.
Post: I’m so excited! I quit my day job today to do REI full time!
- Real Estate Investor
- Champaign, IL
- Posts 114
- Votes 55
Congratulations!! So I see that you started investing in 2011. That is so cool as having the ability to get out of the 9-5 is a 5 year goal of mine. Glad to see that it is possible. Keep us up to date!
Post: Best kind of Rental Property
- Real Estate Investor
- Champaign, IL
- Posts 114
- Votes 55
Its is mostly personal preference. . . Cash Flow, Time Commitment, Renter Demographic. These are only a few things that change when comparing SF to MF. Define your Goals in investing, Learn the business, understand your areas market and I believe this choice will become easy.
Post: From Soldotna, AK to Champaign, IL
- Real Estate Investor
- Champaign, IL
- Posts 114
- Votes 55
Welcome Jerrad.
Post: How best to buy 1-2 properties a month in Indy
- Real Estate Investor
- Champaign, IL
- Posts 114
- Votes 55
Originally posted by @Steve A.:
I will have $15-30k per month to invest in buy and hold rentals in the Indianapolis market over the next year. I've been here for 28 years so I know the area fairly well.
The plan is to put 20-25% down on multifamily residential properties. I do not have a full time job and can manage these just fine. I can also devote every single day to finding deals.
Where can I find the best deals on property in this market? Straight off the MLS? Wholesalers? I want to buy every single one at the 2% rule mark.
My goal is to make a six figure income with these by the end of the year. I already have about $2k net per month of passive income coming in from my other 5 units.
Any help as far as acquisition is concerned is much appreciated.
What do you do and how can I be a part of it??? 2k a month off of five units is pretty good. Were these given to you? Do you still owe on them? If you were the one that purchased these and are truly getting those returns, then what is stopping you from repeating this process? As far as finding good property just go to your local REI Group, stand up, and say I have 30K a month to invest and am new to REI. Then have everyone stand in a single file line while you interview them and pick the best candidate to help you. Ha just kidding about the last part. Good Luck! Keep us Informed!!!
Post: Creative mathematics for deal analysis
- Real Estate Investor
- Champaign, IL
- Posts 114
- Votes 55
Originally posted by @Ron Averill:
I could easily conclude that this area is not a good one for buying rental properties (at least not for me), but I thought I would first try some creative approaches to making the deals more appealing.
For the sake of this discussion, assume that the purchase price has already been reduced as much as possible based on all other factors, and that the numbers used for rental income, maintenance, etc. are conservative. In other words, remove all other issues from the equation.
Here is the proposed concept:
1.Calculate the amount of additional monthly rental income that would be needed to achieve the desired COC return and total ROI.
2.Multiply this monthly amount by a suitable number of years (say 5?).
3.Reduce the purchase price by this amount.
4.For the sake of assessing the deal only, count this price reduction as additional income that makes the COC and total ROI attractive. In other words, amortize the price reduction over the assumed number of years.
5.Then, this argument could be used in the final negotiation of the purchase price.
If this works in the negotiation, would the deal now be a good one?
For every good idea I come up with, I have at least three bad ones. As a newbie in the real estate investing business, I’m not sure which category to put this one.
Any thoughts or suggestions?
Thanks,
Ron
I agree with @Bill Gulley . But the above is rather confusing. As a semi newbie as well I would say do not try and reinvent the wheel. The formulas that are in place are there for a reason. If your evaluation comes up bad its not the formula that needs to change its the property(or its price). I also live in a college town and unless you plan on running all your deals threw a property manager. I would strongly suggest you get your feet wet outside of the college battlefield. Best of Luck, Keep us posted!
Post: Unfair Laundry lease with shady company
- Real Estate Investor
- Champaign, IL
- Posts 114
- Votes 55
any updates?
Post: Before and After.... My First Flip!!!
- Real Estate Investor
- Champaign, IL
- Posts 114
- Votes 55
looks great!
Post: Offer without FULL proof of funds
- Real Estate Investor
- Champaign, IL
- Posts 114
- Votes 55
Post: The "Professional Tenant" from Hell: BEWARE ALL LANDLORDS!
- Real Estate Investor
- Champaign, IL
- Posts 114
- Votes 55
Its legal loopholes like this that make you really desire to look outside of the law for a solution to the problem. (not a suggestion... just a thought)
Post: Marketing a listing
- Real Estate Investor
- Champaign, IL
- Posts 114
- Votes 55
Are you looking for creative ideas like Brokers opens, Craigslist, and Radio ads... or are you looking for Swans in the pool, free hot air balloon rides and Interior decorating magazine cover creative ideas?