My Sucess story

[Nir]

QUOTE (manojsingh @ Jul 2 2009, 10:38 PM) Thanks a lot for your comments. I am honored. I am not feeling that I have done some extra but feeling that I got lucky. It`s really a big motivating factor for me. I feel that REIN is "The Place" to be. Majority of my properties are financed with the help of vendor 2nd mortgage. I feel little bit lucky that I got such a wonderful team and such a nice community. The power of like minded group is so essential. One small example yesterday morning I was looking for plumber (made mistake not to keep some one in team) with in two hours got name for four. What more I can ask. With respect to numbers I am following the REIN system 1% rule.

Manoj et al,

Do you prefer/search for properties with AROUND 1% ratio or the higher the ratio the better!?

Obviously, the higher the ratio the better the cash flow for SIMILAR properties. BUT.. usually we are not talking about the same properties.
Properties with around 2% ratio for example (yes, monthly rent to purchase price) do not exist within 2 hours from Toronto and are in a worse condition.

Thanks,
Neil

 

[lilbuffet]

very nice! I like

 

[rezasal]

QUOTE (investmart @ Jul 3 2009, 06:52 PM) Manoj et al,

Do you prefer/search for properties with AROUND 1% ratio or the higher the ratio the better!?

Obviously, the higher the ratio the better the cash flow for SIMILAR properties. BUT.. usually we are not talking about the same properties.
Properties with around 2% ratio for example (yes, monthly rent to purchase price) do not exist within 2 hours from Toronto and are in a worse condition.

Thanks,
Neil

Hi Neil,

Can you please explain this 1% ratio? I have not heard it yet, but then again I haven`t been active on REIN lately? Thanks in advance, and I hope I don`t come across stupid here.

Cheers,
Reza

 

[invst4profit]

Monthly rent on a property should be 1% or greater of purchase price of property.

1% rule:

Monthly rent $1000.
Maximum purchase price $100,000.

 

[jarrettvaughan]

wow, that is very impressive and inspiring. Keep the stories coming.

Congrats

 

[RanjitPlaha]

Hey, Manoj.
AWESOME story!
Glad to see your success in a relatively short period. You applied yourself and are winning.
Hope to see you at the meeting in the near future.

 

[eddyb1978]

Congrats Bud!
Cheers,
Eddy

 

[JoefromTO]

From what I learned, the proper way to establish purchase price is the 10% rule...Iv`e never heard of the 1% rule personally. I`m guessing it must have been mentioned in a thread somewhere but I dont remember ever seeing it. But in regards to the 10% rule it works that the total gross annual rent should equal 10% of the purchase price...so $10,000.00 annual gross rent would give you a $100,000 purchase price. It works out the same but $1000/month ends up being $12,000.00/year...which is obviously better against a $100,000 purchase price, but much harder to find.

Anyone care to comment?

Btw Manoj, amazing story...very inspirational. That`s alot to achieve in 9 months.