Jul, 2023

Property Walkthrough 101

Rob Rowsell talks with our Addicted To Life Community group about how to do a property walkthrough. If you intend on investing in a real estate property, you need to do your due diligence. Walk the halls and examine every nook and cranny. Get to know all of the staff at the property. You must ask a LOT of questions, so that there are no surprises. That way, you will make sure you won’t invest in a lemon!

How To Perform an Effective Real Estate Property Walkthrough

Rob started the video recalling a property walkthrough he did with a seller. When the session took place, Rob’s partners walked the vacant units with the seller, while Rob joined via live video. He requested phone numbers from the seller and maintenance manager. Get these contacts, if at all possible, since you will think of something you missed asking about while walking the property.

While walking through the property, you should ask questions and get to know everyone you can who works there. They may not realize it, but you are effectively interviewing them for their own jobs! If and when you take over, you may or may not want to retain their services. If you use a property management service like Rob does, you will save some future headaches by passing that information on to them.

Current tenants can also be a great source of information. They may not know their property is for sale, so tread lightly. If renters see you walking the property with their landlord or property owner, you may give off the vibe of a maintenance worker inspecting issues with the property. Don’t be surprised if they start spilling their guts to you about their leaky faucet or broken air conditioning unit! All of this, of course, is useful information. Take notes of what problems people are experiencing. Knowing their issues have been going on for months without a fix can be a real eye opener.

Remember, a property walkthrough is a fact finding mission. Leave no stone unturned in searching for the information you need to make your investment choice.

Join Our Real Estate Investors Community

Do you own multi-family properties? If not, do you aspire to one day? Then you should consider joining our online discussion group, the Addicted To Life Community! Each month, Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Enroll today!

30

Jun, 2023

Cash On Cash Return Explained

In this clip from our Addicted To Life Community Gathering, Rob Rowsell lays out the Cash On Cash Return Real Estate Formula. If you are an aspiring cash flow investor who is looking to replace your business income with recurring passive earnings, then this video is a must watch!

Rob Explains His Cash On Cash Return Real Estate Formula

Rob starts the clip out with a review of two real estate deals he is raising money for. Both of them would qualify as momentum plays. Over time, each investment will yield an average of 7% cash on cash return. Through renovations and rent increases, these properties’ values will increase.

When he sells these properties, Rob uses a formula to calculate total returns. The back end equity earned, plus the cashflow from the five to seven year ownership will equal the total.

Rob then explained the principle of the 2X multiple, which is his goal typically with real estate holdings. In order to reach his stated goal of doubling his money, Rob may need to hold the investments longer than he had originally planned.

For example, let’s say you had invested $100,000 in a property, kept it for six years, and earned back $140,000. Then you would divide $140,000 by six in order to arrive at around $23,000 profit per year. You will have roughly gotten a 23% return on your initial $100,000 investment after six years. That cash on cash return may sound too good to be true. However, in reality, it’s not!

Join Our Community

Do you own multi-family properties? If not, do you aspire to one day? Then you should consider joining our online discussion group, the Addicted To Life Community! Each month, Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Enroll today!

14

Jun, 2023

Offering Memorandum Review (OM)

Rob Rowsell stresses the importance of working closely with your CPA before you make an offering memorandum. Review the details and summary of your P & L every month, so if the day comes that someone wants to buy your business or real estate property, you’re ready to sell.

Advantages of an In-House Bookkeeper

Rob recalls an astounding previous experience of working with an outside CPA. When they returned his records, they had drawn up a P & L, despite not having anything organized. They didn’t ask any questions in order to gain a deeper understanding of his business. He then understood the advantages of hiring an in house bookkeeper.

Let’s say you have a potential buyer interested in your business. They will need to examine your books before making an informed purchase decision. When you don’t pay close attention to your numbers, they will come back with many questions that you as the owner can’t answer. If there are too many question marks surrounding your records, they may walk away. Who needs that headache?

If you have the capacity to employ your own bookkeeper, you should. Whether you’re gearing up for a sale, or providing numbers for your business coach, you always have the answers on hand. Your bookkeeper should know all of the categories and formulas needed to run the financial side of the business, so you, the owner, can focus on other duties.

Offering Memorandum Checklist – Review Your Finances Monthly

Next, Rob suggests a monthly numbers review with your financial officer. A single one hour meeting each month should do it. Don’t let any other tasks interrupt this important meeting. You need to concentrate on both the detailed and summary versions of your P & L statement. Require that they generate those numbers by the 12th of each month. This way, you can make any course corrections necessary. Make sure you have a paper copy, so you can highlight important lines and make notes in the margin. Hold onto your copy for future reference.

This process is so crucial if you have a potential buyer. If you don’t have up to date numbers to include in the offering memorandum, you might miss out on a huge payday. Quarterback those numbers, because nobody will care as much as you do!

Join Our Community

Do you own multi-family properties? If not, do you aspire to one day? Then you should consider joining our online discussion group, the Addicted To Life Community! Each month, Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Enroll today!