All Forum Posts by: Alisha Decoteau

When you have a private funder and you are paying cash on your property.   How do you calculate the  Cash on Cash Return ( annual CF / down-payment)?  Its paid off with cash so there is no down payment correct? 

Also,  there is no Mortgage payment correct?  

@Account Closed Hey Brendan, unless I overlooked a POF I didn't see any. However, what you stated makes so much sense.

We haven't talked to the lender as of yet.     

More due diligence about the area will definitely be done.    

The area doesn't look bad from the pictures/ google earth.   However,  I would have to see the actual area, see the community to determine if its an area I will live in.

Best,

Alisha D 

@Jeff Greenberg   Interesting,  now I know.   It will be a huge project but my partner has more experience than i do.  

Thank you 

Does anyone have an example of the LOI and POF?

Does the POF have the exact amount the Investor is willing to pay for?

Our position is: My partner and I have looked at the #'s the #'s add up to around the asking price.  However, due to the area, we would consider asking for less.  It is a large 300+ property with no cash flow    

The property is currently in a revitalization area but we don't know the extent of the plans for that particular area.     Also, the property is near a cemetery (just wanted to throw that in as an FYI).   

Any examples or advice would be greatly appreciated. 

Okay Noted,  thank you.   We have decided not to move forward with this portfolio.   I thanks everyone for their advice. I will consider the information moving forward. 

@Michael Le Definitely understand, makes sense and noted for the future.

@Andrew Johnson  Thank you for the break down i really appreciate it. I will confirm if the properties were professionally managed or not. 

Makes total sense @Ian Whitney I am totally going through and working with REA or Brokers. Here is the issue I'm running into: I've requested information on properties from a Broker and a REA that's sent me listings on the MLS the info is very vague or delayed in getting back to me.

one focuses on residential but states she partners with commercial experts on any commercial deals. When I asked her for the details like operating expenses, vacancy rates & cap rate I'm getting a very delayed response. Is that normal? or that may be what @Robbie referred to, the information might not be available bc of bad record keeping.  

With the broker - should I approach her differently, are they expected to get the operating expenses ( since listed on MLS) review and give details information since their the expert even though we may not go forward with the deal? Do they get a small payment? If so, how much is suggested?

@Robbie Reutzel      @Ian

What is the best way to find out the Cap Rate in Atlanta or in the area of the property?  When you say across the market are you referring to SF vs Multi-Unit? 

@Ray Johnson    I thought that was odd that each property price per unit was the same. That totally makes sense, never know what problems lye under the surface.

Love the tip on NDA, definitely, will include that in the discussion.

@Robbie Reutzel items for list noted. Just to confirm, the LOI goes to the owner once the analysis checks out as a win-win deal on paper, then we can go in and do further analysis correct?

Appreciate you :-) 

@Michael Le   Thanks for the feedback.  I actually didn't calculate anything.   I simply showed the information that was provided in the offering memorandum.   

I did mention besides the checking out each unit or property to further access any and all expenses. 

I thought more due diligence is needed, which brought me back home to bp :-)  Your comment is confirmation.

thanks much