All Forum Posts by: Troy Gravett
Troy Gravett has started 1 posts and replied 137 times.
Post: Hold Paper but the Buyer defaulted on the Loan - What should I do
- Investor
- Torrance, CA
- Posts 144
- Votes 73
Post: Owner Died in 2012!
- Investor
- Torrance, CA
- Posts 144
- Votes 73
Post: Mailers
- Investor
- Torrance, CA
- Posts 144
- Votes 73
Post: Orange/LA county wholesalers. I need SFR ASAP
- Investor
- Torrance, CA
- Posts 144
- Votes 73
Post: How to Locate Abandoned House Owner
- Investor
- Torrance, CA
- Posts 144
- Votes 73
Post: How do you get compensated for being a bird dog?
- Investor
- Torrance, CA
- Posts 144
- Votes 73
Post: Hard Money Lender in Washington State
- Investor
- Torrance, CA
- Posts 144
- Votes 73
Post: 5 Unit Analysis
- Investor
- Torrance, CA
- Posts 144
- Votes 73
Originally posted by @Melissa N.:
Thank you very much. Yea, I'm trying not to mess this up too bad :)
@Troy Gravett Thank you as well! When buying places do you guys 'add in' any value for the price you can when it's in better shape (you raise rents and do repairs?). I feel like everything we've looked at doesn't cash flow. Am I in the wrong area! Or do I need to start looking at the 'end game' when it's operating more effectively and I can sell it for 100k more.
Sorry, not quite sure what your first question is asking :/
As for your second question, it depends on what your goals are. Do you want to flip it or do you want to hang on for cashflow? I won't buy something unless I can get a proforma cap rate of 10% and a 15% cash on cash return (down payment plus rehab). You should have two sets of financials: actuals and proforma, and know them inside and out. Then you have to put together a buidget on how to get from A to B. I would either subtract the defered maintenance from the asking price or ask for repair credits at closing.
Also, dont be afraid to ask for seller financing. The less you have to put down, the more you have for improvements and the better your cash on cash return is.
Post: 5 Unit Analysis
- Investor
- Torrance, CA
- Posts 144
- Votes 73
Post: What does an Investor look for in Commercial Property?
- Investor
- Torrance, CA
- Posts 144
- Votes 73