April 19, 2017
With so many different real estate options, what and where should we be investing in?
At our 3rd Real Estate Investor Meetup in San Mateo last Wednesday, we presented four past deals from individual investors.
Kevin - Private lending in Florida
Patrick - Private lending in California Bay Area, assisted care facilities in Arizona
Henry - Turnkey rental property in Oklahoma City
Key Lessons Learned:
Each deal is unique - know your numbers before getting into a deal (worst case and best case).
Private Lenders protect their downside and prefer to lend when the borrower has “skin in the game” plus reserves.
10,000 baby boomers are retiring each day and will require better housing options to fulfill their aging needs.
Multiplexes (i.e. duplex, triplex, quadplex) if properly managed and maintained, can create solid long term returns.
Returns on each deal is the result of properly structured deals, experienced professionals, and individuals' abilities to find, analyze, negotiate and manage the deals.
Some key terms we discussed (definitions from Investopedia):
After Repair Value (ARV) is an estimate of the property’s fair market value after repairs and renovations are completed.
Capitalization Rate allows investors to compare properties by evaluating a rate of return on the investment made in the property.
Cap Rate = Net Operating Income / Current Market Value
Cash On Cash, unlike ROI, only measures the return on the actual cash invested, normally used for investment properties that involve long-term debt borrowing.
CoC = Net Operating Income / Total Investment
Return on investment allows investors to evaluate the efficiency of an investment made in the property by measuring the amount of return on an investment relative to the investment’s cost.
ROI = the benefit (or return) of an investment / cost of the investment.
Debt Service Coverage Ratio (DSCR) is a measure of the cash flow available to pay current debt obligations.
DSCR = Net Operating Income / Total Debt Service
Interested in finding out more? Feel free to reach out for more details.
Kevin + Kiri
March 2018 - SF Bay Area. Time to buy???
March 9, 2018
2018 - Will It Be A Good Year For Real Estate?
February 5, 2018
November 25, 2017
October Recap of Real Estate Investor Meetups
November 21, 2017
KPI Lending Portfolio Update: Nov 2017
November 11, 2017
Private Lending 101
October 28, 2017
September Recap of Real Estate Investor Meetups
October 21, 2017
Book Review - Rich Dad, Poor Dad
October 6, 2017
Fall 2017 Real Estate Market Update
September 30, 2017
August Recap of Real Estate Investor Meetups
September 23, 2017
Five 401(k) Myths Killing Your Returns
April 12, 2017
March 2018 (1)
February 2018 (1)
November 2017 (3)
October 2017 (3)
September 2017 (3)
August 2017 (1)
July 2017 (2)
June 2017 (2)
May 2017 (1)
April 2017 (4)
Portfolio Updates (2)
Meetup Notes (12)
Book Reviews (1)
Market Updates (1)
Personal Finance 101 (1)
Getting To Know Us (2)
Private Lending Basics (1)
Risk Management (0)