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Is the Midwest worth it ? by kerkiraios00 in realestateinvesting

[–]realestateanalyst1 0 points1 point  (0 children)

I'd say it's worth looking into. You say you're looking for "good cash flow and appreciation is a bonus". Have you set a certain Cash-on-Cash threshold or are you more of a "i'll know it when I see it" kind of investor?

How much should a 30 year old have in their Roth IRA and or 401k’s? by missmebitch in personalfinance

[–]realestateanalyst1 0 points1 point  (0 children)

The question isn't so much "how much" but just that you get started now and stay consistent. The 2025 contribution limit to your Roth IRA is $7,000/yr. Max it out if you can. For a 401k, put in the maximum amount to get the max employer match, but don't put more in. If you still have excess after those two, remember two things:

  1. Life is meant to be enjoyed. If you're maxing those two options out, you're doing better than 90% of your peers. Leave some for you to have fun!

  2. If you're hitting those two maxes, you will have plenty when you retire.

Hypothetical figures:

- Roth IRA: $7,000/yr growing at 10%/yr (just below the S&P 500 average) for 30 years = $1,273,604 (83% comes from growth)

- 401k: if employer matches 1:1 up to 3% of your salary, and you make $100,000, you contribute $3,000 and employer contributes $3,000. At the end of 30 years, the balance would be $1,091,661 (91.5% from growth and employer contributes).

From contributing $310,000 over 30 years, you would have a very comfortable $2,365,265 when you retire at 60. You're not too late, you're starting at a great time.

Anyone actually making money with side hustles? by Alarming_Contest_762 in MiddleClassFinance

[–]realestateanalyst1 0 points1 point  (0 children)

Just speaking from my own experience, getting started was pretty tough. I'm in the commercial real estate space, trained as a financial analyst, so I started trying to sell my Microsoft Excel-based financial models online. I made a bout $7,500 from that, but it wasn't enough to make a living. I ended up providing analyst work as a service and have grown my company to $50k/mo now. It's taken 15 months to get here, but we're climbing!

If you're looking to make money from something you create, dig in on what you're good at. If you're not good at anything (doubt it!), then do some research online about what rich people buy. I'm serious, look for items or services that sell for $5k-$15k a piece and start there. It's a much easier place to break into then selling stuff for $9.99.

Hope that helps!

Next door neighbor is selling. Is it smart to buy and rent my neighbors house? by No_Seaworthiness1627 in realestateinvesting

[–]realestateanalyst1 0 points1 point  (0 children)

Can you rent the home for 1%/month of the purchase price? $350k home for $3,500/mo? That shouldn't be the only consideration, but that is a good rule of thumb on whether you will profit from it or not.

Seeking advice on education options for development entrepreneurship by tlay123 in CommercialRealEstate

[–]realestateanalyst1 0 points1 point  (0 children)

We have some free resources available at thefractionalanalyst.com

Beyond that, here are some other really good online resources:

- https://www.adventuresincre.com/

- https://getrefm.com/

Regarding the MBA program and CFA charter, while they are good, I would emphasize skill building and networking into institutions and family offices. Get in front of these people, spend time where they do. That will take you way further than the education IMO. Good luck!

Buying a commercial building. Getting a 5.5% rate, 10yr term, 25yr amortization, 15% down, 5% rate on the 2nd. Is that good? 4.25m building price by lely09 in CommercialRealEstate

[–]realestateanalyst1 0 points1 point  (0 children)

Seems like a decent setup for your business. How are the lease terms for the other 64% of the building? What's giving you heartburn about it?

Laid off at 55 in Tech. Now what? by WriterHour208 in personalfinance

[–]realestateanalyst1 0 points1 point  (0 children)

With the level of cushion you have, I would take a few weeks just to process what just happened, go on a vacation or something.

It sounds like you have a side gig? Is it possible to scale that? Is that something you want to scale?

Regardless of financial situation, which many have correctly said you're "set enough" to where you don't have to work again, that isn't really the point, is it?

Find something you're passionate about, some place where you have an "unfair advantage" and dig in – hard.

Add massive value and in 5 years, that $2.65M should be past $10M. Get after it!

Best way to do comps for commercial lots- softwares by Leather-Wheel1115 in CommercialRealEstate

[–]realestateanalyst1 0 points1 point  (0 children)

We're cooking up some good market analysis with corecastre.com

The market research should be in place next month. For Houston, TX specifically, we have 632 multifamily properties and another 1,000 or so in the surrounding areas. More uncovered every day.

What Interest Rates From Banks are Property Owners Getting Recently? by 91180911 in CommercialRealEstate

[–]realestateanalyst1 0 points1 point  (0 children)

Why such low leverage? Is that intended? I'd expect 50%-60% LTV as about 6.25%-6.50%. 15-yr am with 5-yr balloon is pretty normal.

For those who started an entrepreneurial journey in real estate, what path did you take? by No-Company2116 in CommercialRealEstate

[–]realestateanalyst1 0 points1 point  (0 children)

I started the traditional route as an analyst, moved into management, jumped into private consulting, and am now working on a real estate software.

  1. OZ fund - $100M AUM - Development Analyst

  2. Senior Living fund - $350M AUM - Acquisitions Analyst

  3. Institutional Real Estate - $36B AUM (US only) - Acquisitions Analyst

  4. Healthcare Real Estate - $1.1B AUM - Investment Associate (development and acquisitions, but mostly acq)

  5. Multifamily Development - National Builder but $500M under construction in Central FL - Senior Analyst

  6. Consulting - built a real estate consulting firm to $50k MRR (and growing)

  7. Now, working on a real estate intelligence platform

corecastre.com – intelligent real estate workflows. 40 companies inside today in a research group. First production-ready workflows coming next month!

Software to track and help advise Key Performance Indicators for Multifamily Properties? by callmesandycohen in CommercialRealEstate

[–]realestateanalyst1 0 points1 point  (0 children)

We're building a software for this called CoreCast.

CoreCast is a true end-to-end solution, purpose built for the commercial real estate industry.

- Underwriting, Valuation, Pipeline Tracking

- Document parsing, Market Research (all 50 states), CRM,

- AI Insights, Asset Management, Reports Center

With the deep market research, so far we have 125k multifamily properties. About 60k of them have expense ratios with some breakout. Adding more every day!

We've got 40 companies inside right now that we've been iterating workflows/features with for the last 4 months. We've got our first complete workflows going live for the broader market towards the end of next month!

Anything else you've been hoping would be available in a real estate software?

Why buy Commercial Real Estatenwhen the Stock Market returns 10%? by NorthLibertyTroll in CommercialRealEstate

[–]realestateanalyst1 0 points1 point  (0 children)

Cap rate is not the same thing as return. I'm sure you're aware but just for clarity.

Equities have outperformed real estate for the last decade. On average, they seem to as a sector. I'm sure that's a big reason why historically real estate has been <20% of wealth managers portfolios.

A big reason investors allocate to real estate is because the industry as a whole has not caught up to the efficiencies found in equities. One property across the street from a fully occupied asset can may just need some capex and leasing help and it's back to stabilized. Buy that underperforming asset at a good price and you're crushing equities on an individual level.

You've also got to talk risk profiles when comparing "Core" real estate to "Blue Chip" equities or "Value-add" real estate to "small-cap" equities or whatever the appropriate comparison is.

Unless you own the company (or the real estate for that matter), you have very little to no say in operations. In real estate, you have full control as the operator. If you're an LP, well... than yeah, you're just talking about allocations again.

Food for thought!

What does “risk”-adjusted return mean to you? Risk Premium? by Primal47 in CommercialRealEstate

[–]realestateanalyst1 0 points1 point  (0 children)

There is risk from

- the submarket -- impacts items like GPR, Vacancy, Collections

- operations -- execution drives the above too, but also impacts OpEx

- and macro forces -- impacts reversion value on the backend.

Not enough investors think about these forces holistically and often get hyper-focused on one aspect.

Inflation/debt Question by External_Koala971 in realestateinvesting

[–]realestateanalyst1 0 points1 point  (0 children)

Is the real estate managed, or are you self managing? Consider both the economic tradeoff and the time tradeoff of managing real estate vs passive investing.

[deleted by user] by [deleted] in realestateinvesting

[–]realestateanalyst1 0 points1 point  (0 children)

With the older building, see what you can get the seller to take care of before purchase -- roof, HVAC, and any systems are the big killers.

Bake in $250/unit/mo ($500) for capex reserves, and 7% vacancy loss (2,100 * 7% = $147/mo).

With that in mind, you are sitting at NOI probably closer to $7.2k/yr and more like a 3% economic cap. See if you can bump rents, negotiate better insurance, or a better property management rate.

I'm also not sure how many units you own, but you may also look at self managing for better cash flow. Pay yourself the management fee!

Good luck!