All Forum Posts by: Devin A Hanley

Hello,

I am currently in the process of purchasing a multifamily and I have someone who is interested in doing a joint venture on this property with me. They willing to put down a 25% down payment. We plan to hold this property as a long term investment. I would cover the closing costs and initial renovation costs, which are not expected to be more than a few of thousand dollars. I would handle the day to day operations on this property, which primarily will consist of managing our property manager.

Their down payment would get them 45% of the property and it's earnings. They will also receive 8% of their initial investment back before I am able to start to take my share.

I am curious what peoples opinions of this structure is. Do you believe it is fair? I am not sure what the typical arrangement, if there is one, for a deal like this would be.

I appreciate an insights any of you may have. Thank you for your time!

Hello,

I am currently in the process of purchasing a multifamily and I have someone who is interested in doing a joint venture on this property with me. They willing to put down a 25% down payment. We plan to hold this property as a long term investment. I would cover the closing costs and initial renovation costs, which are not expected to be more than a few of thousand dollars. I would handle the day to day operations on this property, which primarily will consist of managing our property manager.

Their down payment would get them 45% of the property and it's earnings. They will also receive 8% of their initial investment back before I am able to start to take my share.

I am curious what peoples opinions of this structure is. Do you believe it is fair? I am not sure what the typical arrangement, if there is one, for a deal like this would be.

I appreciate an insights any of you may have. Thank you for your time!

Hello,

I am currently in the process of purchasing a multifamily and I have someone who is interested in doing a joint venture on this property with me. They willing to put down a 25% down payment. We plan to hold this property as a long term investment. I would cover the closing costs and initial renovation costs, which are not expected to be more than a few of thousand dollars. I would handle the day to day operations on this property, which primarily will consist of managing our property manager.

Their down payment would get them 45% of the property and it's earnings. They will also receive 8% of their initial investment back before I am able to start to take my share. 

I am curious what peoples opinions of this structure is. Do you believe it is fair? I am not sure what the typical arrangement, if there is one, for a deal like this would be. 

I appreciate an insights any of you may have. Thank you for your time!

I am currently under contract for a 13 unit apartment building in Minnesota that has recently been remodeled. The renovation was completed earlier this year which included a new metal roof and boiler system. I am looking for a person, if not two people, who are willing to come into the deal bringing in a total of $121.5k. For this they would then take on 25% ownership of the property if they would like to partner. If you would like to act as a private lender I am open to that as well.

This property cash flows a great deal. It has a CAP rate that is over 10% and its COC is over 15%. I have lending for the remaining 75% of the purchase lined up as well as property management. This property is basically a turnkey unit and once this last piece of the puzzle is complete we will have the final inspection and be able to close on the deal. As of now my closing date is 10/27 but the contract could be extended if needed.

Please let me know if this is something that may interest you. I would be happy to have a conversation over the phone and send you over my proforma and the sellers financials.

Thank you for your time and I hope you have a great day!

Hello,

I have just gone under contract for a 16 unit property in Texas. I was wondering if there is someone on here, or if there is a service provided by BP, that I could have double check my numbers. This seems a like it will cash flow almost immediately. 

I currently own to single family rentals and a business condo. I have been researching multi-family for a long time and have finally found one that seems to fit all of my criteria and then some. I don't know anyone personally who is experienced in this world which is why I am reaching out. I would be happy to send over any of the details and would be willing to talk on the phone as well. If you have some expertise in this I would be happy to compensate you for your time as well. I am really just looking to be double-checked and get a bit more educated on any pitfalls a newer investor in this space my stumble into.

Thank you!

Thank you for your response Abel! 

Just for the record,

The leases will all be up in the next 6-12 months.

The cap rate is 8% and typical cap rate for a B-class building in this area is 5.24%

The debt service ratio is at 1.15, but with a $25 dollar per month raising of rents (which is still a fair market price) it then becomes 1.40

Thank you again for your thoughtful response. It really is helpful. I will make sure to keep you posted. I am in the process of comparing lenders for this place now.

Thank you for your input Jake! I hope a couple of those people poked holes in their roofs and were still turned down. 

That is good to know that the weather is not too much of an issue. From googling McAllen flooding is some of the first things to pop up. I feel better moving forward.

Thanks again!

Thanks for your response Kasey! I am glad to hear it. I am going to continue to look into the property and if a question pops up I may just reach out to you! Thanks again

Hello,

I am looking into an 8-unit apartment building. The builder had the apartment classified as condos, so that is what they technically still are. 

I am curious if there is any benefit to buying this as 8 separate mortgages rather than as 1 commercial building. I understand that the rates may be better if purchased individually. I believe that it then also gives me the option to sell them individually down the road if I would like. 

But, the overall process of this seems like it could be a bit more messy. 

Do any of you have any insight, suggestions or pros/cons to this that I may be missing? Thank you for any insights you may have!

I am currently looking into a 8-unit apartment building. It was built in 2011. The asking price is $600k. It was built as "condos" so there is potential to purchase it as 8 separate mortgages and have a lower interest rate than there would be for a commercial building. 

*Rooms are individually metered for water and electric. Tenants pay utilites  

Gross Rent: $6000

5% Managment fee: $300

5% Cap Ex: $300

Maintenance: $180

Insurance: $200

Vacancy: $60

Taxes: $1670 (Yes, they are that high. Yikes)

P&I: $3220

Cash Flow: $566

These numbers are if purchasing at asking price. If purchased at $575k then it cash flows at $700. As well, the rents can be raised another $25 per room, bringing in another $200 monthly, and still be a fair market price. 

As of now there do not appear to be any upcoming CapEx costs. The building is only 8 years old and is built from brick and concrete. It has been self managed up until now and the owner is retiring. It is currently fully booked. 

I am curious what your opinions are on this and if it seems I am missing something. As of now it cash flows less than I would like, but I do feel that the CapEx funds will be able to stack up well for a while.

Thank you for any input you may have!!