Anyone purchased with FIG (Fourplex Investment Group?)

[Jamie Garcia]

Anyone purchased any 4 plex with FIG? If yes we are your thoughts and how did the numbers work out for you?

Thanks

[Ray Johnson]

@Jamie Garcia I've never purchased with them but everything they are offering is way overpriced, It's clear you'll have to do some hard negotiating, and that's on the older assets to start, the new construction Assets are even worse, a projection of $661 month cash flow on a $750K property is terrible, and since it's new construction the expenses aren't seasoned yet and expenses never go down as a new construction seasons.

I say negotiate hard on the older product and let us know how it goes.   

[Jamie Garcia]

@Ray Johnson what markets are you targeting? I see your in Irvine, I’m in the Sand Fernando Valley. Great to see another Californian in here lol.

[Jon Crosby]

@Jamie Garcia, I checked them out for a long time, have a few conversations with their acquisitions team but in the end, the numbers just didn't make sense.  It would be nice to have new construction but the realistic returns were never there for small to mid-size investor, not enough meat on the bone.   Probably better suited for smaller institutional type situations it seems like who just want to park a lot of money.  

Just my 2 cents though, it's been about a year since I looked at them last.  

[Craig Bussey]

 I'm looking at a 16 unit and I'm slightly confused by the proforma..I might be reading it wrong but the purchase price of a 16 units is 2.2M with income of 141K-- that is an ROA of 6.4% GROSS. The cash flow would be an ROA of 1.5% for the first 25 years until the mortgage is paid off. You make more money in a savings account then the property with zero risk. Perhaps I'm reading the proforma incorrect.. Seems overpriced but I'd like to be corrected. 

[Sherida Zenger]

@Craig Bussey I would love walk you through a FIG proforma and explain it to you.