All Forum Posts by: John H

When discussing with the broker, I'm getting that the expenses are low due to energy efficiency and are based on actuals, as determined by the insurance company.

He's saying that 30-35% are typical unless the property is in very poor condition.

In addition, he's also saying that in the innercity market, 7+ cap rates are not going to happen.

Which is one reason why I'm looking out of the inner-city market.

What's the best way to present his option to buyers/sellers?

In terms of getting paid, it would depend on the terms or structure and it would come from the buyer or seller.

There was one idea from William Bronchick about getting buyers who would purchase properties conventionally with extremely low interest rates, and then having them do a wraparound with a buyer having difficulty. That seems to me to be a bit more difficult to implement.

What's the best way to form a niche around closing deals with more investor emphasis, i.e., getting buyers/investors to close on deals with creative financing like wraps, lease options, etc.

I want to form my residential and commercial business by working with motivated sellers and investors through creative purchases. I want to be an in-depth expert at structuring these deals, finding these deals, and negotiating these deals.

One reason for this is that I am an investor myself, and it seems like a lot of agents don't get into the investor perspective too much.

Any ideas? The biggest challenges I see are in the networking in terms of finding the buyers and sellers.

What do you guys look for when considering multifamily properties?

I'm looking at a 7-unit property currently with the following figures:

*Total Gross income (Rent + Laundry): $78, 000
*Operating Expenses: (Based on 10% vacancy and including 8% management fee): $32,000
*NOI: $46,000

Based on a 7% cap rate, I'm getting at a value of around $650K.

In terms of upside potential, there is not much in terms of rent-increase or maintenance/management. The property is currently 100% occupied. However, in the operating expenses given, the vacancy is only given as 3% which seems low and there was only a minimal maintenance/management expense because the original owners performed it themselves (something which I do not plan to do).

Please give me any thoughts on the property analysis, especially how one might determine the operating expenses.

What's the best way to get the names and addresses of property owners who own multifamily properties?