Hi everyone!
Just wanted to announce that I've moved my blog over to WordPress.
The new URL is http://www.goodfaithinvesting.com/ and all the content has been transferred.
Please visit the new site and update your RSS feed/subscription.
Thanks so much for reading!
Thursday, December 4, 2008
Wednesday, December 3, 2008
Done deal.
We closed on the Ft. Lauderdale property today. It was a roller coaster. The lender and title were working together very closely to try to get this done today...I am yet to see the final HUD but the lender told me the amount and it was less than the initial estimate HUD so I'm pleased. Anyway, because they couldn't pull off the closing by the 2 pm deadline we gave them due to my husband's availability, they actually sent out a notary to his job and -- between massage clients -- he managed to close on this property in 15 minutes. Hilarious.
I just got back home from the Broward Real Estate Investors Association (BREIA) meeting. It was pretty informative. I'll have to try to get to those more often. The good news is that I met a couple investors, contractors, and hard money lenders. I also got a valuable tip on how to determine maximum offer price on a duplex/triplex. I'll explain that in a minute. The bad news is that I had to leave the meeting early since its a school night and I needed to get the kids in bed at a decent hour...which means that I didn't get a chance to take advantage of the post-meeting networking.
Going back to the determination of offer price on a multi plex....here's what David suggested (and he's been investing for 20+ years):
You want to make sure that you are able to get 2% of the purchase price in rental income. So for example, if a duplex is going to cost you $100,000 then you need to be able to make $2,000 gross rental income per month to make it worth your while. If you can't get $1,000 per home in the duplex per month then you shouldn't pay $100K . He said that 2% is actually pretty high and that 1.5% can get you solid deal but he wouldn't go down as far as 1% like he used to do before the market went nuts. Obviously one must account for the costs for financing (if applicable) to ensure cashflow, but this was David's rule of thumb. I'll have to run some numbers and see how it comes out.
We haven't ventured into these types of properties yet, but we very well may...and perhaps we'll work on wholesaling one.
Ta for now.
I just got back home from the Broward Real Estate Investors Association (BREIA) meeting. It was pretty informative. I'll have to try to get to those more often. The good news is that I met a couple investors, contractors, and hard money lenders. I also got a valuable tip on how to determine maximum offer price on a duplex/triplex. I'll explain that in a minute. The bad news is that I had to leave the meeting early since its a school night and I needed to get the kids in bed at a decent hour...which means that I didn't get a chance to take advantage of the post-meeting networking.
Going back to the determination of offer price on a multi plex....here's what David suggested (and he's been investing for 20+ years):
You want to make sure that you are able to get 2% of the purchase price in rental income. So for example, if a duplex is going to cost you $100,000 then you need to be able to make $2,000 gross rental income per month to make it worth your while. If you can't get $1,000 per home in the duplex per month then you shouldn't pay $100K . He said that 2% is actually pretty high and that 1.5% can get you solid deal but he wouldn't go down as far as 1% like he used to do before the market went nuts. Obviously one must account for the costs for financing (if applicable) to ensure cashflow, but this was David's rule of thumb. I'll have to run some numbers and see how it comes out.
We haven't ventured into these types of properties yet, but we very well may...and perhaps we'll work on wholesaling one.
Ta for now.
Tuesday, December 2, 2008
All set to close #2
Tomorrow we will close on the Ft. Lauderdale property - FINALLY! It's been a long time coming....this was our first signed contract on October 10. We're going to be calling a couple roofers tomorrow to get quotes on a new roof on the Sunrise property and also need to make some calls to get a referral on a good electrician who can change out the old school fuse box to a circuit breaker.
I reached out to one of my husband's massage clients today to set up an appointment to go through a formal presentation on our investing program so hopefully I'll have my first presentation within the next week to 10 days.
Things have been quiet from the last batch of offers we sent out, but there was one agent who came back and said we'd need to close in 10 days and put down a 10% deposit in order for the bank to consider our $32K offer. We're just going to go for it and start making some calls to see if anyone is interested.
Tomorrow night is my first Broward Real Estate Investors Association meeting. Looking forward to making some new contacts. I'll be sure to give an update on that tomorrow.
I reached out to one of my husband's massage clients today to set up an appointment to go through a formal presentation on our investing program so hopefully I'll have my first presentation within the next week to 10 days.
Things have been quiet from the last batch of offers we sent out, but there was one agent who came back and said we'd need to close in 10 days and put down a 10% deposit in order for the bank to consider our $32K offer. We're just going to go for it and start making some calls to see if anyone is interested.
Tomorrow night is my first Broward Real Estate Investors Association meeting. Looking forward to making some new contacts. I'll be sure to give an update on that tomorrow.
Subscribe to:
Comments (Atom)
Posts
