All Forum Posts by: Victor Gomez

Thank you, Ron! Much appreciated :)

I am interested in cash flow, like you said, so I am guessing that the only way to pay them back the principal of their investments is by re-financing. Am I correct? I don't want to sell (unless the property does not cash flow for any reason).

In my case, I want to get a small multi-family property, a four-flex, and it is a good deal that returns 800+ a month and 12%+ of ROI. The problem is that I do not have money for the down payment, so I need to raise OPM for this deal. And I am struggling on how to make it work for this deal.

Any ideas or suggestions would be really appreciated :) It is my first deal, so I am still learning.

Thanks a lot!

Hi All!

I have been struggling with figuring out how to distribute money money between investors when raising money for a real estate deal, and maybe you guys can help me out to understand this.

I see investors looking for investors, and they offer 12% returns annually with a minimum to invest. I wonder how is this possible? How can you give somebody 12% if they invest the minimum, and also give 12% to somebody that, let's say, invest double the minimum? It just does not make any sense to me.

Does anybody understand how this process work?

For instance, let's say I am looking for investors to put $100,000. And I know that my property has $10,000 of return annually. If I tell my investors that I will give them 12% annually, I would be lying on this case, Ince 12% is more than what we make, correct? So, how do I calculate how much to give the investors?

Hopefully I explained myself clear :)

Thanks a lot!
Victor.

Hi Everybody,

My name is Victor! I am originally from Spain but I have been living in Silicon Valley, California, for about 11 years now. I have to say that the experience has been positive so far, with a few negative items such as the evolution of home prices and how expensive has become living on this state.

At some point during this period I had a complicated health issue and I ended up getting into a lot of debt to pay for my medical bills. This really made me realize how important is to build wealth and having passive income. I I didn't have a job at the time that this event happened, I would have been in real trouble.

So I started investing time and money in my financial education and IQ. From reading books like Rich Dad Poor Dad, and other RE investing books, taking online classes and courses, going to meet-up groups. I did read and study a lot and finally became aware of lots of things. I am not at that moment where I can start taking action, so here I am in BiggerPockets.

I just wanted to say hi to everybody and share my story. Maybe some of you can relate to it.

Glad to be here!

Best,
Victor.

View report

*This link comes directly from our calculators, based on information input by the member who posted.

Hi all!

This is my first time posting in the forum, and I decided to do it by sharing my first cash flowing deal that I was able to find after several changes in the rental calculator.

I do not understand the "financial info" in the report, so I was hoping that some more experienced investor could chime in and try to explain me the meaning of them. For instance, in my report I see:

* 1.07% 2% rule --> Why 1.07? I thought this was just a rule to say that my income has to be more than 2% the price of the property. The income for this report ($4000) is more than 1.07% of $345,000 (without counting repair), and more than 1.07% of $373,000 (including repair), so I don't get where that 1.07% is coming from.

* Gross Rent Multiplier: 7.19 --> What does this mean?

Other than that, I can see a cash on cash return > 12%, which is good, and > $200 per unit, which is good. What do you guys think?

Thanks a lot for helping me get better at analyzing deals :)
Victor.