All Forum Posts by: Erik Hatch

Before covid I’d underwrite 30% down to close a deal. I’m thinking it’s more now. 

Is this kind of a we work model? I have been inside a we work building before in Boston and it was pretty interesting. 

A, and B plus. Thinking that people who live in the more expensive properties are better able to weather this storm

I just closed on a HELOC from Huntington last week. Personal residence at 85% LTV and 3.64%. Very easy to deal with.

Those numbers look pretty good then. Plus you get depreciation and appreciation. My VERY rough number would be you put down $195,000 leaves you debt service on $580,000. That's $29,000 a year at 5%. $29000/$60000 gives you VERY rough 48% return. Add in all the expenses etc and that will come down. I think it would be wise to plan for less of a return. 

What will the financing structure be?

Gary you have some work to do. Be careful not to advertise this because it can get illegal if not careful. If you need some direction pm me. 

Many challenges out there for sure. I spoke with Dan at your firm at length the other day as well. Looks like the well oiled operators should fare ok but not immune to the current situation. The uncertainty is enormous.

If there is a current management company in place there, could they be a partner?

That’s a good question. I think it depends if you plan on it as a business or just taking income in. Deducting expenses in businesses is how you reduce taxes generally.