All Forum Posts by: Abel Sng

@Jeff Greenberg for sure! I should have clarified and said rent comp reports.

Another resource would be property management companies. We work with one pretty much exclusively and they run comp reports for us anytime we ask. They will be key if you plan on scaling.

Good luck!

Like @Mike Dymski capex isn't included in your NOI however you'll need to factor it into your offer. We like to raise our capex budget upfront for any deferred maintenance or rehab so we won't be in a bind down the road.

Is the property through a broker? At the end of the day the NOI and cap rate is just to get the party started in negotiations. @Tom Dunkel hit the head on the nail... if you plan on deriving your offer based on the NOI and you include capex, most likely you'll fall short of what others will be offering.

Good luck!

How many units are the properties? Are you using a 506(b) or (c)? That will really dictate your strategy on how you can market the deal.

Sounds like you already know the answer to this one! Listen to your gut... remember you make your money on the buy not the sell!

@Marc C. I totally agree with you! However, it will all depend on the sophistication of the investor... We typically structure our deals with an 80/20 split and keep it simple. In my experience, if you can't clearly explain the proposition and returns in less than 5 minutes you've already lost the investor.