All Forum Posts by: Davit Gharibyan

Hi fellow investors.

I was evaluating a 88 unit complex and based on T12 financials it runs 69% expense ratio. Based on the actuals it is worth $4.2mm.

Now the property doesn't have a listed price and they are looking for the highest market bid. However they have mentioned they are looking for an offer in $9mm range, which is based on around 50% expense ratio.

The property is obviously mismanaged and has a high expense ratio. The deal is to reduce the expenses to increase the value, and the rents are below market so there is a potential there as well.

How would you come up with the valuation? Based on the actual financials or the story that the broker is selling?

Your feedback is greatly appreciated.

Great info and tips! Thank you everyone.

@Chris Seveney thank you for the suggstion, great idea. Let's say I am clueless and never invested in RE, I have only done stocks, 401K, IRAs. Willprivate placement memorandum explain the process or it simply talks about that particular investment? 

Hi guys, I need your advise/suggestions.

When and if you'd invest in syndicators deal what questions would you ask to learn more about the process and vet the syndication. Let's say I am clueless about the whole thing (e.g. I am a doctor and I want to invest in a deal but I have no idea about the process).

Thank you for suggestions.

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@Tim Joyce let me know if there is anything I can help you with.

Hello all,

I am working with a homeowner whose property is going to be auctioned off on November 21. This will be a sheriff's sale. The house is in MN, Dakota County.

The ARV and the loan balance owed make sense and it can be wholesaled. Do I just submit a purchase agreement and run the transaction like a normal wholesale deal?

Does the deal have to be compete before the sale?

I know in MN the homeowner has 6 months after the sheriff's sale to redeem the property.

Any suggestions are greatly appreciated.

Hi @Amber Gonion, would you happen to know the cap rate in Maplewood/ North St Paul area? I am guessing around 7.5-8. Please advise, thank you.

The property is good but there are many worrying issues (missing 2nd borrower, etc)

Thank you Dustin and Brian, I was suspecting that this could be a messy situation but you have confirmed it. On top of everything the person who lives in the house now wants additional 2-3 months after the redemption to move. That could be another interested development.