All Forum Posts by: Brendan Levesque

I have a seller who has offered to carry some papers on a semi large (~3M) commercial portfolio. I'm not sure what I should offer.

Ideally I'd like him to carry 25-30% at 4.5%. does he laugh in my face?

Background - the deal doesn't make sense with me putting up 20%. about 7.29 cap rate, 2.88 COCR. BUT if he'll put up the 30% at less than 5.5 my COCR skyrockets.

thanks.

In Boston.

REO in very rough neighborhood. listed at 299k and needs work.

At 20k of work I'm going to try and get it for 225k-240k. Already spoke to the agent, it's been on the market with no offers for 7+ months.

Property was former Sect 8. Once repairs are done and apartments are up to spec the 2 bed units should get 1,200 and the 3 bed 1,600 per the current market.

So even at 240k +20k repairs/carry:

Total annual income 48k
Expenses 24k

NOI of 24k

Cap of only 9.37%

but,

if I put 20% down at 7.5% that's a cash on cash of 13.30%

thoughts? Any serious problems renting to Sec 8 I am missing?