All Forum Posts by: Amir Khan

This is addressed towards experienced flippers who currently flip in DFW market. We have been trying to find deals that following simple formula: OFFER PRICE= ARV x 07-repair costs. But looks like most wholesalers are bringing deals to market that are well over this number. So my question is:

1. Do you ever buy properties for flipping (rehab/retail sale) at price that is more then the offer price formula above? If so, does that mean you are making less profit?

2. You only buy properties for flipping at price at or below the offer price formula above. If that is the case, do you buy from wholesalers or do you source your own leads?

Thanks.

@Joel Owens thank you so much for clearly explaining the concepts. I appreciate your thoughtful and helpful answers. 

@Don Konipol thanks for sharing!

@Damon Pendleton thanks for your feedback and suggestions. So I understand, to make financing with investors work; asset has to be priced right, produces enough income to pay debt financing plus some cash flow for investors (higher cap rate). What would you suggest to offer acceptable rate of return for investors and/or exit strategy equity sharing? Your suggestion about investing in a project passively is great, are there any specific places online where there are syndication groups actively posting opportunities?

@Vic Reddy thanks.

@Joel Owens @Damon Pendleton thanks for your responses. 

Damon yes, you're right about me not accounting for debt servicing. So if most (or all) of it goes to debt servicing ($1.76 million at 5%= $114K yr), how are deals like this ever put together? Would investors ever be interested in only investing for profits at exit strategy?

Joel lease term is 20 yrs ending 2027, this is large national bank with solid deposit history, 4 x Five (5) Year Options, 10% Increases at each 5 year option. Great location in a large DFW area city, just off busy interstate highway.

So I am looking at available properties that I could possibly syndicate (while I am experienced with residential real estate, I am relatively new to commercial RE). Here is a situation:

- Property type: bank leased NNN

- Cap rate of 5.%

- Asking price $2.2 million

- NOI: $110K

If I wanted to put this together, financing it with 20% down ($440K) by bringing 10 investors together each bringing in $44K, the deal will yield 25% cash-on-cash for each investor (NOI/no. of investors = 110K/10=$11K/yr, return per investor/cash investment per investor = $11K/$44K = 25%. In addition, each investor will be offered equity in the property and profit sharing when pursuing exiting strategy. Are my assumptions and calculations correct? If you were to structure it how will you do it? What are the pros and cons?

Hello Houston Folks!

I will visiting Houston on 12/18 for few hours (I am based in Dallas), interested in meeting Houston investors interested in networking and/or creating syndication opportunities. Would love to meet you for coffee on 12/18. 

Thanks.

@Andy Webb thanks!

@Annitta Brinkley thanks.

@Phil Dodd thanks.