Wholesaling a 6 unit apartment building

[Jestin Sorenson]

Hey guys,

I have a lead on a 6 unit apartment building. I have a buyer. I don't know enough about evaluating a 6 unit to even know what to get it under contract for. The buyer is open to discussing terms. I know you guys need to a lot more info about the property, but as a ball park, what might be a good whole fee or equity percentage for a finders fee. Instead of wholesaling the property, I could get a portion of the equity. What would be a fair amount? The 6 units noi is about 18k per year. Purchase price is 4-500k. I need to negotiate that still. Any help on navigating this or something that at least points me in the general direction would be greatly appreciated. Let me know if you need more info. There is possible value add of bringing the rents up from 800 to 1000 per month per unit. There is also a basement and garage that could be more value add. Prob C class neighborhood.

[John Woodrich]

@Jestin Sorenson I don't have time now to look over other deals, sounded like everything is very questionable at this point. I think you need to get solid numbers before structuring this deal. In the matter of days NOI has jumped $12k, sounded like there was an opportunity to increase rents, now it sounds like rents have already been increased and there may not be much room for improvement. Must be a nice 1BR for $800 if the 2BRs are going for $900.

If I were a potential buyer here I would be very concerned with this movement in the numbers. I suggest you get numbers you are confident in and present those realizing what the financing limitations are.  I would also talk to your commercial lender to be certain how they would be looking at the seller carryback.