All Forum Posts by: Dan Sears

I sent you a message @Tim VandenToorn

I am purchasing a 4 unit and 6 unit in Grand Rapids, MI. More specifically in Standale / Allendale.  I am looking for a professional property manager that is fair on price.

@Jason V.Yeah I recently backed out on a 20 unit in a town over. During the due diligence process the numbers were not what was presented to me. It was more of a proforma. I look at it personally as buying wholesale vrs retail. I am not going to pay a price on what something COULD be. One thing I could do different is sign a NDA and get more numbers before signing a LOI. That is one of those things that is going to be a learning lesson for me.

On my deal that fell through the numbers were not what I liked and I made a different offer during due diligence which was declined so I gracefully walked. To me its non emotional and all numbers. Although I do need to get better with the numbers.  That is why I am here.

@Jason V. as soon as I get more info I will be able to reveal more. 

The basic info I know. At my offer the cash on cash while managed is more than 15% while being managed. The insides of the units are not in bad shape at all. I will be able to inspect further during due diligence. I look at this deal as a learning lesson. This is not me going all in on this deal. I am pretty certain this will not negative cash flow.

Also I would like to get more involved with seminars and any other mentor-ship programs. I am always looking to learn more.

@Tim VandenToorn

I have to go to Paris this week leaving Wednesday, but I should have some time free the week after. Would love to hear your insight on this.

My only problem is they denied an offer at 300k so I tried to come up with something that made sense.  The cash on cash return seemed to be really good even at the current rental rates. I also figured there is potential for upside. I could potentially leave it as is and make nearly 20% on  my cash.

@Ben Leybovich  Thanks for the well thought out response. Some of what you said here is over my head, but it is something id love to learn. 

1. If I did acquire this property one thing I would do is force a new lease, and there would be a no smoking policy in the building and attached would be a fine.  This would either be an upgrade in tenants or cooperation. 

2. The units inside were actually very nice at a quick glance. A little painting and I think they would be good.

3. This is slightly over my head.

I offered 290k, and felt it was a decent offer, but I may be wrong.

@Mateusz Prawdzik Local Company. 

@Doug Johnson this is a higher CAP rate than the average. I structured a pretty cool offer. I think that it works to my advantage.

Land Contract 17.2% down. 4.5% interest. and 65k below ask. I dropped 3.8% of the down payment to allow for some rehab and not cut into my cash on cash return as hard. I also made it so I am not allowed to pay off the Land Contract before the first 5 years. To allow him to recoup some of the loss on purchase price in interest.

Let me know your thoughts.