squall74
New Contributor
I'm reading a lot of books and articles online, and had some questions regarding making offers to a potential property. As every property is strictly a business transaction (Will it cashflow, and is it worth the time and money invested), I would have to value every deal and make offers based on what the property is really worth.
This might be very general but I look at the potential rent, operating expenses, and add in a return percentage that makes financial sense. So on a 4plex bringing in $2,800 ($700/unit) less operating expenses of about 50% (conservative) would be $1,400 per month. Do I then multiply the yearly return ($16,800) and multiply that by that by the preferable rate (lets say 10%) to come to an offer of $168k? Would this matter over COCR?
Also my next question is how do you make a bunch of these offers? Is it possible to work out a deal on each property I am interested in and submit offers to every potential deal? Should I work with a realtor on my end? If I do and make 100's of offers based on my financial analysis will they still work with me? It seems like the realtor won't want to spend time with a tire kicker but I can only acquire properties if the deal works. I know that properties listed with realtors usually won't mean motivated sellers but I am looking to expand my numbers as much as possible to locate deals.
This might be very general but I look at the potential rent, operating expenses, and add in a return percentage that makes financial sense. So on a 4plex bringing in $2,800 ($700/unit) less operating expenses of about 50% (conservative) would be $1,400 per month. Do I then multiply the yearly return ($16,800) and multiply that by that by the preferable rate (lets say 10%) to come to an offer of $168k? Would this matter over COCR?
Also my next question is how do you make a bunch of these offers? Is it possible to work out a deal on each property I am interested in and submit offers to every potential deal? Should I work with a realtor on my end? If I do and make 100's of offers based on my financial analysis will they still work with me? It seems like the realtor won't want to spend time with a tire kicker but I can only acquire properties if the deal works. I know that properties listed with realtors usually won't mean motivated sellers but I am looking to expand my numbers as much as possible to locate deals.
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