Income Investing 101
Why Are We Here?Value investing is at its core the marriage of a contrarian streak and acalculator."                      ...
Value Investing
EDUCATION   MBA- Finance   Real Estate Instructor License   Masters in Real Estate Finance (NYU) EXPERIENCED    Invested i...
My Reasons
1)   Personal Investment Plan2)   Find Your Deal4)   Analyze the Deal5)   Checklist for Site Visits6)   Presenting an offe...
Income Investing?Investing into instruments that providerepeat cash flow with diminishing effort
InvestingInstruments Multifamily Student Housing Tax Liens Discounted Notes Commercial Assets
I.    Investor TypeII.   Investment StrategyIII. Capital AvailabilityIV. Return on Equity    RequirementV. Risk ToleranceV...
Investor Type
Return on Equity:                          Beat My Return on Equity?Return you want to makeon your invested cash!
High RiskMedium Risk Low Risk
"We dont get paid for activity, just for being right. As to how long well wait, well waitindefinitely."                   ...
Online          Realtor.com          Loopnet.com / Showcase.com (Commercial Asset Specific)          Auction.com          ...
Cash Flow? NOI?CAP Rate?....Ahhhh
Gross Income                      -Vacancy                      -Rent Loss        ----------------------------------------...
Key RatiosTYPE OF RATIO            FORMULA                IDEAL RATIO RANGECAP Rate (ROA)           NOI/Purchase Price    ...
Back of Envelope AnalysisAssumptions   ROA                   10% (Cap Rate)   Vacancy Rate          10%   Management Fee  ...
Analysis & Legal Tools
Prospect Deal
Checklist ItemsLocationAssetTenant
Littleton Investment- FactsAsset FactsAsset Type:       3 Family AssetIn-place Rents:   $        (What is the number?)Expe...
EQUITY + DEBT = CAPITAL STACKDebt Sources       -Mortgage       -Preferred Equity       -Bridge Financing       -Mezzanine...
Littleton Investment-            CAPITAL TABLEInvestor FactsRe:               10%+Risk:             Moderate to HighCapita...
Legal agreements to learn:        -Letter of Intent        -Purchase & Sale Contract        -Option Contract
 Home Inspection Environmental Inspection Municipal Inspection Financial Analysis Market Analysis
Asset Plan   Investment Target Strategy  Asset Current Financials Value Add Opportunities Stabilized FinancialsExit Plan
 HUD Statement Mortgage Document Note Document Title Report Insurance
Get Your Cash Out:Open Market SaleAuction SaleRollup SaleTIC SaleSeller Financed Sale
@Ankit_RER              Facebook             Real Estate             Roundtable
Income Investing
Income Investing
Income Investing
Income Investing
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Income Investing

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If you need to know how to invest into cash flow investment real estate then check out this presentation. Email me at aduggal@rernj.com to request the video that further explains these slides.

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  • <<Embed Video: http://youtu.be/pgE6i8JHbUs?t=4s>>
  • Add Images of NJ Biz, Clifton Journal, NJ.com, North Jersey.com
  • Talk about CAPM
  • Places to find data resource page. Copy from Book
  • Put a resource page together with these websites
  • Provide the PPM
  • Show them HUD, Mortgage, Note, Title Report
  • Income Investing

    1. 1. Income Investing 101
    2. 2. Why Are We Here?Value investing is at its core the marriage of a contrarian streak and acalculator." - Seth Klarman
    3. 3. Value Investing
    4. 4. EDUCATION MBA- Finance Real Estate Instructor License Masters in Real Estate Finance (NYU) EXPERIENCED Invested in over $15 million of Northern New Jersey since 2008 Buy & Hold Investment in Section 8 and Student Housing
    5. 5. My Reasons
    6. 6. 1) Personal Investment Plan2) Find Your Deal4) Analyze the Deal5) Checklist for Site Visits6) Presenting an offer7) Due Diligence Stuff8) Asset investment plan9) Sources of Capital10) Closing Table- Now What11) Getting Money Out!
    7. 7. Income Investing?Investing into instruments that providerepeat cash flow with diminishing effort
    8. 8. InvestingInstruments Multifamily Student Housing Tax Liens Discounted Notes Commercial Assets
    9. 9. I. Investor TypeII. Investment StrategyIII. Capital AvailabilityIV. Return on Equity RequirementV. Risk ToleranceVI. Target Hold Period
    10. 10. Investor Type
    11. 11. Return on Equity: Beat My Return on Equity?Return you want to makeon your invested cash!
    12. 12. High RiskMedium Risk Low Risk
    13. 13. "We dont get paid for activity, just for being right. As to how long well wait, well waitindefinitely." - Warren Buffett
    14. 14. Online Realtor.com Loopnet.com / Showcase.com (Commercial Asset Specific) Auction.com MLS Public SitesOffline Signs/Marketing Bankruptcy Attorney Real Estate Brokers/Agents
    15. 15. Cash Flow? NOI?CAP Rate?....Ahhhh
    16. 16. Gross Income -Vacancy -Rent Loss ----------------------------------------- Adjusted Gross Income -----------------------------------------Fixed Expenses: -Property Taxes -Property Insurance -Fees and Permits Variable Expenses: -Utilities -Maintenance -Professional Fees ----------------------------------------- Net Operating Income (NOI) -----------------------------------------
    17. 17. Key RatiosTYPE OF RATIO FORMULA IDEAL RATIO RANGECAP Rate (ROA) NOI/Purchase Price 6-11%Return on Equity (ROE) Net Cash Flow/Equity 10-20%Break Even Ratio Debts + Expenses/GPI 60%<Loan to Value Debt/Asset Value 80%<DSC Debt Payment/NOI >1.25
    18. 18. Back of Envelope AnalysisAssumptions ROA 10% (Cap Rate) Vacancy Rate 10% Management Fee 5%Asset Case Facts: Total Units: 4 Purchase Price: $200,000 Gross Income: $40,000 Operating Expenses: $20,000 NOI: $ Market Rent/Unit: $1,500
    19. 19. Analysis & Legal Tools
    20. 20. Prospect Deal
    21. 21. Checklist ItemsLocationAssetTenant
    22. 22. Littleton Investment- FactsAsset FactsAsset Type: 3 Family AssetIn-place Rents: $ (What is the number?)Expenses: $12,000 (As provided by Seller)Sale type: Short SaleDeal Source: GSMLS
    23. 23. EQUITY + DEBT = CAPITAL STACKDebt Sources -Mortgage -Preferred Equity -Bridge Financing -Mezzanine CapitalEquity Sources -Self Directed IRA -Syndicate Capital -Operator Equity/Cash
    24. 24. Littleton Investment- CAPITAL TABLEInvestor FactsRe: 10%+Risk: Moderate to HighCapital Source: Equity & Debt Combination
    25. 25. Legal agreements to learn: -Letter of Intent -Purchase & Sale Contract -Option Contract
    26. 26.  Home Inspection Environmental Inspection Municipal Inspection Financial Analysis Market Analysis
    27. 27. Asset Plan Investment Target Strategy Asset Current Financials Value Add Opportunities Stabilized FinancialsExit Plan
    28. 28.  HUD Statement Mortgage Document Note Document Title Report Insurance
    29. 29. Get Your Cash Out:Open Market SaleAuction SaleRollup SaleTIC SaleSeller Financed Sale
    30. 30. @Ankit_RER Facebook Real Estate Roundtable
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