If you need to know how to invest into cash flow investment real estate then check out this presentation. Email me at aduggal@rernj.com to request the video that further explains these slides.

1. Income Investing 101

2. Why Are We Here?
Value investing is at its core the marriage of a contrarian streak and a
calculator."
- Seth Klarman

3. Value Investing

5. EDUCATION
MBA- Finance
Real Estate Instructor License
Masters in Real Estate Finance (NYU)
EXPERIENCED
Invested in over $15 million of Northern New
Jersey since 2008
Buy & Hold Investment in Section 8 and
Student Housing

6. My Reasons

7. 1) Personal Investment Plan
2) Find Your Deal
4) Analyze the Deal
5) Checklist for Site Visits
6) Presenting an offer
7) Due Diligence Stuff
8) Asset investment plan
9) Sources of Capital
10) Closing Table- Now What
11) Getting Money Out!

9. Income Investing?
Investing into instruments that provide
repeat cash flow with diminishing effort

10. Investing
Instruments
Multifamily
Student
Housing
Tax Liens
Discounted
Notes
Commercial
Assets

12. I. Investor Type
II. Investment Strategy
III. Capital Availability
IV. Return on Equity
Requirement
V. Risk Tolerance
VI. Target Hold Period

13. Investor Type

15. Return on Equity:
Beat My Return on Equity?
Return you want to make
on your invested cash!

16. High Risk
Medium Risk
Low Risk

17. "We don't get paid for activity, just for being right. As to how long we'll wait, we'll wait
indefinitely."
- Warren Buffett

18. Online
Realtor.com
Loopnet.com / Showcase.com (Commercial Asset Specific)
Auction.com
MLS Public Sites
Offline
Signs/Marketing
Bankruptcy Attorney
Real Estate Brokers/Agents

20. Cash Flow? NOI?
CAP Rate?....Ahhhh

21. Gross Income
-Vacancy
-Rent Loss
-----------------------------------------
Adjusted Gross Income
-----------------------------------------
Fixed Expenses:
-Property Taxes
-Property Insurance
-Fees and Permits
Variable Expenses:
-Utilities
-Maintenance
-Professional Fees
-----------------------------------------
Net Operating Income (NOI)
-----------------------------------------

22. Key Ratios
TYPE OF RATIO FORMULA IDEAL RATIO RANGE
CAP Rate (ROA) NOI/Purchase Price 6-11%
Return on Equity (ROE) Net Cash Flow/Equity 10-20%
Break Even Ratio Debts + Expenses/GPI 60%<
Loan to Value Debt/Asset Value 80%<
DSC Debt Payment/NOI >1.25

23. Back of Envelope Analysis
Assumptions
ROA 10% (Cap Rate)
Vacancy Rate 10%
Management Fee 5%
Asset Case Facts:
Total Units: 4
Purchase Price: $200,000
Gross Income: $40,000
Operating Expenses: $20,000
NOI: $
Market Rent/Unit: $1,500

25. Analysis & Legal Tools

26. Prospect Deal

27. Checklist Items
Location
Asset
Tenant

28. Littleton Investment- Facts
Asset Facts
Asset Type: 3 Family Asset
In-place Rents: $ (What is the number?)
Expenses: $12,000 (As provided by Seller)
Sale type: Short Sale
Deal Source: GSMLS

29. EQUITY + DEBT = CAPITAL STACK
Debt Sources
-Mortgage
-Preferred Equity
-Bridge Financing
-Mezzanine Capital
Equity Sources
-Self Directed IRA
-Syndicate Capital
-Operator Equity/Cash

30. Littleton Investment-
CAPITAL TABLE
Investor Facts
Re: 10%+
Risk: Moderate to High
Capital Source: Equity & Debt Combination

31. Legal agreements to learn:
-Letter of Intent
-Purchase & Sale Contract
-Option Contract

32.  Home Inspection
 Environmental Inspection
 Municipal Inspection
 Financial Analysis
 Market Analysis

33. Asset Plan
Investment Target Strategy
Asset Current Financials
Value Add Opportunities
Stabilized Financials
Exit Plan

34.  HUD Statement
 Mortgage Document
 Note Document
 Title Report
 Insurance

35. Get Your Cash Out:
Open Market Sale
Auction Sale
Rollup Sale
TIC Sale
Seller Financed Sale

36. @Ankit_RER
Facebook
Real Estate
Roundtable