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What is Property Pigs ? |
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Formally? Property Pigs™ is a compilation of the knowledge and experience of real estate investors, real estate professionals, contractors, mortgage lenders, building professionals, and financial analysts. Property Pigs™’ purpose is simple - to provide knowledge and support to individuals who are looking to create wealth through real estate investing. Informally? We’re a bunch of well informed people who are trying to make a lot of money through real estate and help others to do the same.
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| Q.2 |
How can I become a Property Pig ? |
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Buy our stuff! No seriously, buy our stuff - you automatically become a member.
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| Q.3 |
Should I go and see every property I analyze? |
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Absolutely not! Why waste your time looking at properties that are losers financially? Remember the 50-5-1 rule: Analyze 50 – Go look at the financially best 5 – buy the physically best 1. (Besides, if you spend all your time driving around to look at every property, your significant other will likely drop you like a stone).
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| Q.4 |
How many properties should I analyze before I buy one? |
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How ever many it takes for you to achieve a comfort level with your market. I analyzed hundreds of properties over an eighteen month period before I was ready – (but then again, I’m a very anal pig).
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| Q.5 |
What down payment percentage should I expect to pay? |
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It depends on if your income property is considered residential or commercial. A property with four or less units is usually considered “residential” – which will put you in the 10% down range. More than that and you are entering “commercial” property territory – more typically in the 20% down range. However, shop it around. There are plenty of unconventional lenders who will vary from these norms.
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| Q.6 |
Is it better to put as much or as little money down on a property? |
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The opinion of the Pigs is…AS LITTLE AS POSSIBLE. Read the “Pig Philosophy” on this website.
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| Q.7 |
Should I use a Property Management Service? |
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At some point in time perhaps – like when you have a full trough of properties. But remember, it will cost you (6% of gross plus expenses is normal). Property Pigs recommends going it alone at least for awhile. Get a feel for the business. Pick your own tenants. Be your own Pig.
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| Q.8 |
When using Property Pigs’ Market Hog©, should I delete an analyzed property if it turns out to be a dud? |
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No! Keep it in your data base. The other properties will be glad you did – it makes them look that much better and gives you a truer picture of the market.
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| Q.9 |
Should I have a property professionally inspected before I buy it? |
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Oh yea! Let’s just say that not getting a property professionally inspected made our top ten list of biggest mistakes!
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| Q.10 |
Can anyone make money in real estate investing? |
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Probably – but having a support group of fellow Property Pigs makes it easier, more fun, and certainly more profitable.
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| Q.11 |
Why do you think real estate investing is better than other investments? |
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Leverage!!! What do we mean? Read “Pig Philosophy” on this website.
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| Q.12 |
Where do I get all the property information that Property Pigs’ Market Hog© requests? |
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The listing real estate agent. Simply e-mail or fax them the Property Info Request sheet that the software provides. They should have all the info you need (or else they will get it for you from the current owner).
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| Q.13 |
Why does Property Pigs’ Market Hog© want to know the age of a property’s roof, heating system, etc.? |
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Market Hog© provides not only financial analysis numbers, it also warns of estimated future capital expenses that might occur based on the age, type, material, and cost of various systems and building components. In a nutshell – Market Hog© Real Estate Investment Analysis Software is pretty damn thorough!
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| Q.14 |
What is a normal Loan Term for a property? |
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Remember our discussion of residential vs. commercial properties? If you don’t, shame on you for skipping around! Loans for properties with four or less units (“residential”) can usually be amortized over 30 years. Loans for properties with five or more units (“commercial”) usually are limited to 20 years.But again –shop it around. These numbers are just rules of thumb!
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| Q.15 |
When using Property Pigs’ Market Hog©, what number should I use for Occupancy Rate? |
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37,784. Just kidding. It depends on the property. The listing realtor will have the rental history of the previous years. Using 92 (92%) would assume that each unit would be vacant 1 month a year. This isn’t bad.If your rents are priced right, vacancies should be less than a month.
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| Q.16 |
With all of Property Pigs™ diversity and experience, have you considered writing a book that corals it all? |
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But of course! A book, not surprisingly titled “Property Pigs!” is under way and will be available soon!
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| Q.17 |
What is the best way to find income properties that are currently for sale? |
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You’re using it – the Internet. Contact a realtor in the real estate market that you will be tracking and find out what site they are using to list properties.
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| Q.18 |
I’ve researched the real estate investment software that is on the market. Most of the other programs are $80 or more (some much more). How is Property Pigs™ able to offer Market Hog© for so little? |
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We have lousy accountants? Hmm. Actually the answer is simple. Market Hog© is an efficient program. It provides thorough financial analysis results, it generates clear and concise property reports, and displays easy to sort market comparison charts and graphs. It includes everything that you need to make accurate, well informed decisions… and nothing more. No waste. No slop. No pig poop. Why pay for what you don’t need?
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| Q.19 |
Does Property Pigs’ Market Hog© consider inflation when estimating future property returns? |
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Sure does. An inflation constant is applied to all future value and return calculations.
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| Q.20 |
What kind of analysis results does Property Pigs’ Market Hog© provide? |
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All monthly operating info including gross and net operating income, expenses breakdown including utilities, insurance, taxes, property management fees, lawn/snow removal, repairs/upkeep, (DEEP BREATH) association fees, advertising costs, professional fees; monthly cash flow info including mortgage payment, pretax cash profit, cash-on-cash return; annual taxable income info including mortgage interest and depreciation; capitalization rate, debt coverage ratio, addition to net worth, and estimated capital expenses. Did we mention that all these results are provided for years 1, 2,3, 4,5,10,15,20, and 30?
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It’s a ratio between a property’s net operating income and mortgage payment. The greater the value over 1.00, the more comfortable the lending institution will be lending you money.
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It’s a ratio between a property’s net annual operating income and the purchase price.Look at it and understand it – it is very useful for comparing properties to one another.
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| It’s a ratio between a property’s annual pretax cash profit and down payment plus out of pocket closing costs. This is a very good indicator of what the investment yield of a particular property really is. |
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