All Forum Posts by: Sean Ploskina

Welcome to the neighborhood!  Check out the webinars here on BP.  They are at least one specifically about wholesaling and how to use the calculators

Is your yearly debt service the 115k?  If so what is the 3k per month loan payment.

I am assuming you meant 5% vacancy and 95% occupied

If your 2014 income was 218k -expenses 90k= 128k- debt service 115k=13k yearly cash flow so closer to 1k per month cash flow

Make sure the loan really is assumable.  It is rare these days unless the loan was originated a long time ago.  

Confirm all expenses via tax returns and income from deposits and rent rolls.

When you say expenses does that include debt service?  Check to see their loan is something you can afford.  If it is cashflowing 3k per month it is a larger apartment complex so you will really need to check the condition of the property.

I was supposed to close on a duplex being sold by the VA yesterday. At 430 I received a call from my lender(not the VA) that the VA requires 48 hours to review the HUD before they will ok the close.

Has anyone dealt with this before?  Is this something my lender should have known, seems like something that they should.

The 70% rule is in regard to flipping. It states that your total cost of acquiring, repairs, holdings, everything should be 70% of the ARV.

All of these are rules of thumb and should be used as a first glance analysis not the final analysis.

Rarely have the major expenses been able to wait.  Pipes burst in the front yard, Surprise inspection results from Section 8.  Tenant wrecks a unit.

Your reserves should be held in a relatively liquid format.  The returns on a CD are not worth the time a unit sits empty because of disrepair or damage. 

I have started to apply by philosophy of physical training to my real estate goals.

'You have to move a big pile of dirt.  Sometimes you have a shovel, sometimes a spoon.  But everyday move some dirt.'  -John Welbourn

I analyze one target property per day.

I post on BP once per day

I read an article on creative finance once per week

I make one connection on BP per week

What do you do consistently to get better at this game?  

Lets hear it BP!!

Time consuming but you can look at recent sales for LLCs buying SFHs.  

The normal networking with realtors will give you some names also.

Throw it up on the BP marketplace!  

Make sure everything conveys as is or doesn't.  You don't want to show up and no fridge.

On top of what you already talked about for expenses I ask for a copy of their last two years Schedule E.  This will show how much they claim to IRS for things like repairs, utilities, and income.  Sellers inflate their income and downplay expenses to buyers, not the IRS.  If they balk I bail on this.

Since the start of the year I have analyzed one property per day.  

I have several properties already but it only takes a few minutes even to plugin to the BP calculator.  

It has been great practice just a little bit everyday.  So you will know at a glance if it worth investigating further