All Forum Posts by: Ryan Webster

@Barry Washington

What is the current noi on the property?

Where is the property?

What will be the new property tax liability after you acquire the property?

If the projected noi without renovations without rental increase will support 80% debt I'll help you get actual renovation cost and determine if the roi on renovations is enough to support the debt required to complete renovation.

@Ki Lee

I'd be happy to help you with your underwritting.

@Justin Frank

%50 is a good start. I typically acquire t12s from a few similar properties in the same submarket. If the all show expenses around 46% I use 46% for my quick look underwritting. If it makes sense from there I consult my property manager to determine what our projected expenses will be.

The most important factor for expense comps are age, # of units, amenities, style, and type of construction.

@Nathan Haws

The appraisal process is very relative. It's mostly based on comps which is why the price from location to location varies greatly. The most heavily weighted factor is what's the value of the the most recently sold, closest and most similar home to yours. You dont want to be too unique if you have a 3000sqft 4b3b in an area the has mostly 1800sqft 3b1b this doesn't nessasary mean you have more value in that neighborhood. Real estate is hyperlocal and relative. The reason there are alot of 1800sqft 3b1b in the subject neighborhood is because the people buying in that neighborhood demonstrated that's what they wanted and could afford buy purchasing 1800sqft 3b1b. Understand the value of the comps in your neighborhood and you'll understand the value of your property.

@Jay Clegg

Yes you can, you'll essentially put up 401k as collateral for bank loan.

@Lisa Gauff

Short term rentals are illegal In hawaii without transient licences.

Do not put in an offer, you need to start with a non binding letter of intent. In this letter offer a price based on the noi and market cap rate. Include your time line for due diligence and what you intend to include in your due diligence.

You'll negotiate on terms from there. During due diligence in your financial audit prove the noi you used to write your offer price. If you can only prove less than the noi adjust your price according, also take into account and deferred maintenance and the cost associated.

The price you start at will very rarely be the price you close at.

@Bekkah Vidal

I'm in

@Marduk Mooshoolzadeh

You can invest with $0. First learn as much as you can about real estate investing. How it works, what the benefits are, how to spot a good deal, how to negotiate. Read every book you can find on the subject a good start is brandon Turner's low and no money down. Real estate is an amazing investment but understand it has a steep learning curve. Dispite its benefits you can lose money in real estate if you lack the knowledge to qualify and investment and know the diference between investment and speculation. Mistakes are the greatest teacher the trick is learning as much as you can from others mistakes before you make your own, and dont be afraid to make mistakes it's part of the process.

The first invesement should always be In yourself the investor not the investment.

Read, learn, network.

@Mark Franks

Schlage is the brand you want for the money. Abus is the next best but you'll pay for it.