All Forum Posts by: Amit Ronghe

Replying to follow..

@Corey Hawkinsoni just sent you a message. I would like to pick your brain on this topic.

Thank you so much.

@Luciano A.hi, I am just following up to see how the RUBS implementation go in your Houston property. I would be interested to hear more.

Thanks for your help.

@DeAndrea Douglas in this case since you don’t have any actual numbers so you will have to work on some Proforma numbers. Looks at the neighboring similar properties for market rent. You will have to factor in a lot of initial expense to make it livable it looks like. Get a general contractor to give you an estimate and I would recommend add 50% (or even double it) on top. Get an inspector to inspect it as well. If it’s been vacant for long there may be a little t of unknown issues that may come to bite you. Gather as much info as you can about the area and properties around to see if this property will be worth it. Try and understand from the owner as to why it is in the state it is. Hope this helps.

@Brendan Chisholm thanks a ton for sharing your experience. Although u didn’t close, this deal should be counted as a success for you. As you said the learnings from this deal are well worth that..!! Good luck for your future deals.

@Matt Nusbaum, thank you for the tips.. I appreciate it.

@Bruce Petersen thank you. I will be there around 5:00 - 5:30 pm. Let me know if this time works for you. I have sent you a connect request. I can PM you my number.

@Eric Kundinger so your private money source is a debt partner not an equity partner. Is that right? Also if you don’t need to have a partner on for this deal, I would recommend going solo. If your partner is not bringing in money nor is being an active asset manager I don’t see why you would want to get him onboard but if you do need to then you already have a leverage over him and ask for 60:40 in your favor and may be agree on 50:50 as you negotiate.

But if your private money source is an equity partner then typically you should get an acquisition fee from them (you may also get this fees from debt partners as the acquisition fees will be part of your acquisition costs again anything can be negotiated ) but then they would get/expect something like 70:30 or 60:40 split depending on the money they put in the deal. In which case you and your partner will split the 30% or 40% between you two. Again I would recommend if you don’t need a partner go solo.

@Eric Kundinger to be honest, anything can be negotiated but if I understand it right the private money will bring in the down payment and the seller financing is the rest? Is your partner the source of the private money (I assume so)? Also will he be active asset manager or more of a passive investor? Depending on how much money he is putting into the deal he/she will expect more share than 50:50 split as it’s his money on the line. When you refi, are you both going to be on the note? There are a lot of variables and combinations that may play into it but again as I said everything is negotiable. That’s my 2 cents.

@Bruce Petersen I am looking for 50+ units. It looks like you are from Austin. I plan to be there this Thursday early evening if you are free to connect. Thanks Bruce.