All Forum Posts by: Diego A.

Hi Shannon Savage welcome to BP!!! Have fun learning some REI strategies! :)
Good luck!

Brandon Turner is there a way to repost my response with the active "@mention"? I just want to properly link the people that said hi to me. I think that it doesn't work with my tablet because it is working fine with my computer.

Hi Kiara Walters, the internship was RE related. However I did some financial analysis for some of the properties the investor was thinking about acquiring. It was a lot of fun because it was really hands on!

I hope everything is going well!

I recently found a Multi-Family deal that should pay it self. I have run the analysis with all the research that I have done and so far the numbers work, yet I am not sure how to set up the debt.
I virtually have no downpayment so I am trying to raise capital for it, but I am not sure if that capital can be use immediately or if it has to season before I can use just like it needs to season for a residential deal.
Also, I am not sure what options are out there for me to finance a commercial deal like this.

Any ideas are greatly appreciated it. Thank you in advance!

Hey everybody! This is my first post outside the "New Member Introduction area" but I have several question for a deal I am trying to set up. This deal is the reason I stumble onto BP, so the research already paid up!
This is the deal (I am going to work with some approximations and a factor for respect to the owner)
Price - $660K (it is negotiable)
Units - 16 units with space for 8 more (two buildings - one newly built and the other one newly remodeled)
Target renters - low to medium income
GRI - about $11K per month and $130.7K per year
Vacancy - I assume a 10% vacancy loss however the property is fully leased
Operating Expenses - $3.7K per month and $44.6 per year. This includes: Advertising, Utilities, Insurance, Landscaping, managers fee, Taxes, etc. This has a lot of overestimations for the expenses.
NOI - $6.0K per month and $73K per year
Monthly Payment (PI) - $2.8K and PITI - $4.4K based on a 5% interest with an amortization of 30 yrs.
Base on this analysis CF - +$3.3K per month and $39.1 K per year
This yields a cash on cash of 29.7 %
and a income to debt ratio of over 2.1.

Base on this numbers this deal looks great! However, I am concern about some things:
1) With this NOI the cap rate is about 6% which is really low for a class c+ property and the area. Which means that if valuation is done with the higher cap rate, this property will be worth a lot less than the asking price even when the number work. So it will affect financing.
2) The tax office only value it at about 30% of the price is this a red flag?
3) What financing options can I get and how do I reach them? (I have done a smaller deal, 4 units, before so this is new to me) Especially because I don't think I can qualify for such a price just by myself but I think the property can cover it.
4) How can I make sure everything is in order? The owner acquire the property only a year ago and I am not sure what to think about the owner's paper work (no schedule E or proper files for units).
5) I am basically starting out so I was thinking about raising some capital for the downpayment. Is that something I can do or does the money have to season like a residential deal?
6) What steps can I take to ensure everything is ok in a FSBO property?
7) Any other suggestion or info I should try to get?

Thank you for the help in advance (sorry about such a long post but I read that if we want to ask for help we need to include as much info as possible. Also if this is posted in the wrong place please let me know. I am trying to make sure I don't break any of the forum rules)

Welcome to BP Fabio!! I think helping people and giving back to the community is a good way of thinking when doing some of the wholesale deals!!

Good luck!

Welcome to BP Ginny!

Welcome Jeff!!! You are in the right place to learn!!!

Good luck!

Welcome to BP Kiara Walters!!! I recently joined myself and I noticed that there is a lot that anyone can learn in this side so you are definitely in the right place!!

Have a good one and good luck!

Hi Shavon Scott! welcome to BP. You are right there is so much information on this site it is amazing. Have a good one and good luck on your future endeavors!