Would you partner with this investor? I’m nervous.

[Account Closed]

He is an experienced investor who I’ve wanted to partner with for a while. He seems to be very successful. He is asking for $100,000 Hard cashup front. Looks like return is 8% cash on cash. I need guidance. These are the details:

64 unit complex $2,375,000.00

Total loan amount $1,995,000.00

Down Payment $380,000.00

Upfront repair costs $300,000.00 (all new roofs, curb appeal, and vacant units)

40 2 bedroom @700.00

24 1 bedroom @600.00

Gross annual rental income $508,800.00

10% vacancy $50,000.00

Effective gross income $457,920.00

Expenses:

Insurance $12,000.00

Taxes $11,800.00

Utilities $60,000.00

Dumpsters $9,000.00

Accounting $7,000.00

Maintenance Reserves $38,000.00

Management $40,500.00

Total expenses $178,300.00

NOI $279,620.00

Financing $154,245.76

75 / 25 split Roughly $94,030.68 / $31,343.56

8% cash on cash return for investor

$10,000.00 needed up front and the remaining at closing

[Bryan Devitt]

Business relationships are like marriages, if you're questioning if you should do it, don't do it. Maybe it turns out good, but maybe it turns out horrible and it is a very messy, expensive and drawn out divorce. Is the risk of the second worth reward of the first?