Borrowers: what they say…….and what they mean

[Don Konipol]

Borrowers: what they say……..what they mean

1. I’ve established a class A “team”……….. I finally got an attorney to work without a retainer

2. I’ve got extensive experience in multi family residential ………………. I live in a rental apartment in a large complex

3. I have 15 years experience in real estate …………….I own my own home

4. I’m buying the property with equity partners…………..I don’t have any money personally to invest

5. I’ve syndicated my last purchase………………I got my mother and father to provide an early inheritance 

6. The property cash flows at a 15% ROI…………………..before insurance, debt service, utilities, management, vacancies, repairs, maintenance, payroll and property taxes

7. Tax returns for the property are unavailable………………tax returns show consistently large loses

8. Here is the pro forma financials for the property……………they assume 150% occupancy and a 150% rent increase 

9. Here is my business plan………….copied from another business with the old name not changed in some places

10. I plan to self finance and do all needed repairs myself ……….. I have no money to do repairs and no clue how to get any