“People can open doors for you… but ultimately, it’s your choice to walk through them.” – John C. Maxwell.
Whether you are a ‘seasoned pro’ with multiple properties in your portfolio… or a beginner looking for your first one. The numbers are so important in this field of play.
Even in the trickiest of markets, there are always investors making transactions.
That’s because they themselves are performing the necessary due diligence to find opportunities.
Or… they have enrolled a Real Estate professional who can run the numbers for them and explain each potential purchase in great detail.
I have multiple tools for Rental Properties, Airbnb, Fix & Flip and more. These tools run very specific data analyses on each property. They are customizable to your risk tolerance. And they account for more than most people even think about when it comes to buying an income property.
You can almost always profit from Real Estate if you are calculated, informed and leave emotion at the door.
REAL ESTATE INVESTING
Please note – I am not a qualified licensed investment advisor and I do not provide personal investment advice. I can provide tools for you to conduct your own due diligence and/or work for you during the due diligence process. You should still consider consulting a licensed financial advisor or broker before making any and all investment decisions. Should you choose to work with me in finding your Real Estate investment property, we will enter into a contract specifically outlining expectations at that time. As always, I suggest you work with your lawyer and investment advisor to ensure you are comfortable with any and all associated risks attached to Real Estate Investing.
British Columbia And Beyond
While I’m currently only licensed to perform Real Estate transactions in BC, I’ve helped clients buy investment properties from Newfoundland to BC. I’ve referred excellent local realtors to navigate their purchases and draft their contracts in each location.
Having a realtor working in the market you plan to invest in is crucial. These men and women know their local market better than anyone surfing the web and looking at pictures of properties.
But having a Real Estate professional who can spot a potential investment and run the necessary numbers is a great asset as well.
If you are curious about Real Estate investing, how to get started or want to continue growing your portfolio I’d love to speak with you. Let me buy you a coffee and we can talk about opportunities to achieve your Real Estate goals.
Drop me a line or call LETS CONNECT
INCOME ANALYSIS METHODS
Here are some “back of the napkin” analysis methods you can run:
Net Operating Income (NOI)
= Gross Rental Income – Operating Expenses
● Ex: $30K gross rent – $12,000 operating exp. = $18,000 NOI
Cap Rate
= Net Operating Income ➗ Total Purchase Price
● Ex: $18,000 NOI/yr ➗ $250,000 = 0.072 or 7.2% cap rate
Net Income After Financing (NIAF)
= NOI – Financing Costs
● $18,000 – $13,800 financing cost/yr = $4,200 NIAF/yr
Cash-on-Cash Return (ConC) **investors love this one
= Net Income After Financing ➗ Down Payment
● $4,200 ➗ $50,000 down (20% of $250K) = 0.084 or 8.4% ConC
Gross Rent Multiplier (GRM)
= Total Purchase Price ➗ Annual Gross Rent
● Ex: $100K price ➗ $9,600 annual gross rent = 10.42 GRM
One Percent Rule
= Monthly Gross Rent ≥ 1% of Total Purchase Price
● Ex: $2000 monthly rent ≥ 1% of $190,000 purchase price (1% is $1,900)
