Million dollar Potential wholesale deal

[Willny Guifarro]

Hey fellow BP members I'd like to get you guys and put on this deal I'm supposed to get on the contract. It's a packet of apartment buildings in Jefferson Louisiana. 77 units in total. Bringing in $48,000 a month in revenue. Gross is $576,000 Annually. multiply that by .55 45% of that in expenses and miscellaneous. Leaves me at a $316,000 NOI He is looking to sell the property for 3 million all-cash. I have a potential buyer who maybe interested in the property and has bought several apartment buildings on the same street. I was wondering how do I go about showing all 77 units and prequalifying this buyer so he doesn't waste my time. My exit strategy would be wholesaling this deal. Any advice or tips on double closing? Wording of contract ? I never done a deal this huge before and I need all the advice I can get Thanks !! 😀

[Nick B.]

@Willny Guifarro, it all depends on the property class. For C class 45% is too low. Use 55-60% as a sanity check for expenses. That is if the rents are $100K and expenses are $60K, it's normal - 60% ratio. But if expenses are $30K in the same example, find out why.

Do not use these %% rules to figure out expenses based on rents. Expenses do not depend on rents!