Cash Flow Friday Tip #32: The One Big Mistake You Don't Want To Make When Running Pro-Forma's on Investment Properties

Real Estate Investing for Cash Flow with Kevin Bupp

Kevin Bupp

Reit, Consultant, Syndication, Seniorliving, Retail, Kevinbupprealestate, Acquisitions, Realestate, Selfstorage, Donaldtrump, Assistedliving, Apartmentinvesting, Flow, Shoppingcenter, Kevinbupp, Coach, Investing, Kevinbuppflorida, Foreclosure, Realestateinvesting, Cashflowinvesting, Office, Business, Entrepreneur, Cashflow, Commercial, Real, Industrial, Education, Mergers, Trainer, Shortsale, Millionaire, Investments, Privatelending, Legacywealth, Funding, Podcast, Multifamily, Broker, Estate, Apartments, Commercialrealestate, Experts, Mobilehomeparks, Cash, Privatemoney, Valueadd, Hedgefund, Robertkiyosaki, Defaultedpaper

4.9 • 675 Ratings

🗓️ 11 September 2015

⏱️ 6 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Thank you for joining me today as I share tips and strategies that will hopefully bring you a ton of value and help take your real estate business to the next level.

This week I'd like to cover a mistake that I see real estate investors make all too often when running their financial projections or pro-forma's on a new potential acquisition and how it can be the difference between a good deal or a bad one.

Listen in as this is one show you won't want to miss.

Recommended Resources:

Download my free success guide, “7 habits of highly successful multi-family investors” by going to www.KevinBupp.com/guide
Schedule your free 30 minute "no obligation" call directly with Kevin by clicking this link https://www.timetrade.com/book/KV2D2
Looking to invest in Mobile Home Parks? Want to JV with me on deals? If so, schedule a call with me and let’s talk. Click here https://www.timetrade.com/book/FGF7S

Transcript

Click on a timestamp to play from that location

0:00.0	Welcome to Kevin's Cashflow Friday Real Estate Tip, where Kevin shares with you strategies and tips that will help increase your cash flow,
0:12.8	make you a more sophisticated investor, and provide you with the tools necessary to take your real estate business to the next level.
0:19.5	Now, here's the man you've been waiting for, Kevin Bub.
0:23.2	Hey guys, Kevin Bubb here with episode number 32 of the Real Estate Investing for Cashflow, Cashflow Friday Tip.
0:29.4	Thank you for joining me today as I share tips and strategies that will hopefully bring you a ton of value and help take your real estate business to the next level.
0:36.8	And this week, I'd like to cover a mistake that I see real estate business to the next level. And this week I'd like to
0:37.5	cover a mistake that I see real estate investors, both new and season, make all too often when
0:43.1	running their financial projections or performance on a new potential acquisition and how this
0:48.0	mistake can be the difference of a good deal or a bad one. And this one big mistake that I'm
0:52.7	mentioning here is running your financial
0:54.8	projections using the most recent property tax bill on a property that hasn't been reassessed
0:59.9	recently and where the new purchase price is significantly higher than the current assessed value.
1:05.4	And what this means is that there's a fairly strong chance at some time in the not so distant
1:09.6	future that the county assessor
1:11.3	will reassess this property, which means that your tax rate is bound to see an increase,
1:15.9	right? Just makes sense. If the property is going to be worth a lot more than when they reassess
1:20.2	it, your tax rate's going to go higher. Okay. So here's a quick example on a park that we were
1:25.0	looking at recently. We had under contract where if this wouldn't
1:29.4	have been done on the front end, if we wouldn't have known any better, it would have meant the
1:33.3	difference. Like the actual, the property would have been reassessed in the not so distant future.
1:37.5	And our taxes would have gone up almost $10,000, which on this park was like a nine cap park.
1:42.7	That would have meant over $100,000 in lost value
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from Kevin Bupp, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of Kevin Bupp and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.