Does this exist?

[Juan Maldonado]

Hello, I am looking into an opportunity to acquire 46 units for my company, the owner is willing to do owner financing, but is demanding us to get Private Mortgage Insurance does this even exist? I have never heard of it.

[Dion DePaoli]

I do agree with Wayne Brooks and Bill Gulley that you may be diminishing your margins for no good reason. Apartment complexes, as I stated are pretty attractive investments. Larger capital players are willing to drive the cap rate down to low levels in order for them to get their money deployed.

The one counter concept to your pro-forma is that I think you may be able to reduce the down payment and end up with a better interest rate. I also recognize your return target is not known nor is the property cash flow stability or upside.

The advice there is don't over bid your proforma numbers for the sake of getting the property. When the numbers do not make sense any more, walk away.