RE-160 Lecture Notes - Lecture 20: Fix-Up, Estoppel, Cash Flow

• School: Diablo Valley College
• Department: Business Accounting/Management/Marketing/Real Estate
• Course: RE-160
• Professor: burnaford

Document Summary

Don"t buy the building, buy the cash flow. If it doesn"t pencil be willing to walk away. The market doesn"t care what rate of return you need the market is the market. Jumping at the first opportunity versus looking long and hard for the best deal. Not clearly defining your criteria for purchase. Lack of knowledge read, listen, consult. Remodeling the property to the standards you would set if you were to live in it. Miscalculating cost of work to be done & cap. Not checking local ordinances and zoning restrictions. Not willing to pay for inspection (inspections are. No estoppel on personal property or rental rates and terms. Not set up to manage property before purchasing. Paying too much up front profit at purchase. Not creating a capital reserve in your numbers. Not considering time value of money during time taken to fix-up. Investing in real estate the property without rents etc.