All Forum Posts by: Tony Lanier

Derek Carroll Jeff Kehl Jimmy Klein Great info guys, thanks for the education,as this peaked my interest also. Much more knowledge than I. Just adding my .2 cents, & trying to engage in conversation.

The figure you would use for the cap rate would be the asking price. If you know your noi, and you know what the seller wants for the property, then you can then calculate the value of the subject based on this criteria. This very well may not be the true value of the property but, it gives you a snapshot of their story. Only after your due diligence, will you know the true value. Pm me, I am interested in discussing this further.

Patrick Philip comps are used on single family, and multi-family properties up to 4 units. Anything over 4 units is considered commercial properties, and are valued by cap-rate instead of comps.

Patrick Philip I think the formula you are referring to is the inverted version of finding the cap rate. To find cap rate the formula would be, noi divided by value/price. To invert this to find value/price would be,value = noi divided by cap rate. This will give you a value to place on a property. I am new here, so stick around for other suggestions. Hope this gives you a starting point!

John,

I am new to the world of REI, and I am trying to network, and build a team for current/future endeavors. My strategy is to buy low, and force appreciation for BUY and Hold properties. I have not engaged with anyone in REI from our general area of interest so, any advice for a novice would be well appreciated! I am really trying to find my path in the vast field of REI. I know from the many posts here on BP that reputable subs are hard to come by, and when you do find those keep them, at all costs!! I perceive the information on this subject as such. If you find one that is not busy, that means they are the ones that you don't want. I want to THANK YOU for extending your contact/s, for it is very much appreciated. If I can be of assistance in any way, please let me know.

Regards,Tony

@Jeff Garzik

I am a novice @ REI. Thanks for passing along this advice, as I have been looking into seller financing as an exit strategy for future properties. Question though! Wouldn't a buyer under these stipulations choose traditional financing instead, or is this just for people that don't have down payment? I as referenced above am a novice, and trying to soak up any advice, information etc..to add to my toolbox.

Regards, Tony

@John Mocker

John,

  Thanks for taking the time to help!! I am looking into several options for coverage, as cancellation time is approaching. If I have any problems obtaining this coverage I will PM you for more info.

Regards,Tony

@John Mocker

  Thanks for the advice John!!! Just to clarify, I will not be residing here until these few items are repaired, which could possibly take a few months, but my insurance provider was aware of this. After these few months, I will move in and continue rehab over the next 18 months. The remaining items @ this time will only be interior upgrades, as such any homeowner does in due time.

Regards,Tony

@Account Closed @Joshua Fulenwider

Thanks Guys, for the advice!! I will definitely put these into play.

Regards, Tony

Hello Members,

Hope all is well. I recently bought a SFR as an investment property which I'm going to make some immediate repairs to in order to reside here. FYI, roof leak, a couple of broken windows, partially collapsing porch, open foundation and damaged steps. I have started making such repairs, then I will finish repairs on the property over the next 18 months as cash becomes available on a monthly basis. This will be the savings per month that I have incurred from the purchase of this property.

The savings will be reinvested until the rehab is complete. I have had the property since Feb 17, 2017 and got it insured day of closing when they were informed that property would be vacant during initial rehab, we were to have sixty days to move in. 

To make a long story short and spare you any more details, I received a notice today from my insurance provider that they are going to cancel coverage on this property in the next two weeks based on these items listed above for needed repairs.

In closing, I want to thank all of you in advance for any help, thoughts or advice that you can relay.

Regards,

Tony