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.
5. 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
7. 1) Personal Investment Plan
2) Find Your Deal
4) Analyze the Deal
5) Checklist for Site Visits
6) Presenting an offer
7) Due Diligence Stuff
8) Asset investment plan
9) Sources of Capital
10) Closing Table- Now What
11) Getting Money Out!
21. Gross Income
-Vacancy
-Rent Loss
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Adjusted Gross Income
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Fixed Expenses:
-Property Taxes
-Property Insurance
-Fees and Permits
Variable Expenses:
-Utilities
-Maintenance
-Professional Fees
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Net Operating Income (NOI)
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22. Key Ratios
TYPE OF RATIO FORMULA IDEAL RATIO RANGE
CAP 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
23. Back of Envelope Analysis
Assumptions
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
28. Littleton Investment- Facts
Asset Facts
Asset Type: 3 Family Asset
In-place Rents: $ (What is the number?)
Expenses: $12,000 (As provided by Seller)
Sale type: Short Sale
Deal Source: GSMLS
29. EQUITY + DEBT = CAPITAL STACK
Debt Sources
-Mortgage
-Preferred Equity
-Bridge Financing
-Mezzanine Capital
Equity Sources
-Self Directed IRA
-Syndicate Capital
-Operator Equity/Cash
30. Littleton Investment-
CAPITAL TABLE
Investor Facts
Re: 10%+
Risk: Moderate to High
Capital Source: Equity & Debt Combination
31. Legal agreements to learn:
-Letter of Intent
-Purchase & Sale Contract
-Option Contract
32. Home Inspection
Environmental Inspection
Municipal Inspection
Financial Analysis
Market Analysis
33. Asset Plan
Investment Target Strategy
Asset Current Financials
Value Add Opportunities
Stabilized Financials
Exit Plan