All Forum Posts by: Account Closed

be sure to check on The insurance, you are going to need Hurricane here in Miami with a bank loan. The $250 may not be enough. 

The bank will also calculate numbers with management in place they don't care that you will be managing it so I would keep it there.

The $2K for loan acquisition seems low and you need to account for legal fees and other closing costs. Double check with your bank that they are going to amortize the loan at 30 years and not 25. 

The question of the return is all relative, what part of town is this in, some areas in Miami sell for 4 Cap and other for 12 Cap. 

@evan

@Evan Cruz What is it about real estate that got you hooked?

@Eli Rods you should connect with @Avrohom New 

@Avrohom New make sure you perform background checks etc and I would speak to your attorney as to if you should sign some sort of document 

Stay away, can only be a big headache, there are more deals out there!

@Marty True please post what you find. I have a team but not in love I want to get it revamped.

what has been the experience of some of the folks whom live in areas which have had high condo development over the past years like in Miami, here most developers are stepping off new condo development and holding out or have converted to rental. 

 My question specifically is did you find in the last cycle that when the condo market had a glut, developers tried to rent out their units on the cheap and if so did that affect the mom and pop multi family units that are always on the market. The "rental" buildings,  older properties that lacked the luster and amenities of these new condo buildings.  Of course these properties developers built are not designed to be rental buildings so eventually they will go condo or will sell off the units the question is during the cycle of the downturn do mom and pop investors get slaughtered because they have to compete with these awesome new units 

welcome!

@Joseph Gozlan @Joel Owens

Thanks for the insight, I am deff. Going back in for a renegotiate but needed to be pulled out of the emotional side! I have met with the city, DERMA, zoning etc. and I am assuming $90PSF on the rehab with plenty of contingency so that "should" cover me. I am going to request a $400,000 decrease. Will keep you posted. 

Hello BP Freinds, I need some advice.

A vacant 24 unit property in the Shannedoah market of Miami. The seller offered 75% financing on a $1.9M purchase price + a buyers commission of $100,000. Initially the building looked liked it needed about $700,000 total, for which I got a pre-approval from a local bank on 75% of the construction costs. During DD one thing after another popped up, zoning informed us the property would need to be converted to 21 units, structure has issue, and the electric is shot. So in short the building is now a complete gut renovate. With out boring on the details this went from a 15% + return cash on cash, with an ARV of $5M+, to now being a 6% to an ARV of $4.3M. However the total cost for acquisition and rehab will be $4M, so that gives me only $300,000 so hear is the question....

Given the unforeseen issues with the city and the building condition I think I can get the owner to give me 90-100% financing. So there is a chance I can get into this deal for $600K total of my cash, I am a buy and hold guy and something is telling me to take this even though the return is so low, as the opportunity for 24 units in this market in the long run will appreciate considerably, however prior to this deal landing on my lap, I would not even consider anything less than 12% on a leveraged deal. However those deal were 8 units max not 24 units on a half acre of land. 

Am I right in my thinking, take the deal because I'm in it for so little cash or run for the hills...