All Forum Posts by: John Roth

I get these emails daily. Today if I had a BG, SBLC, MTN, CD or good old cash they will give me 288% in two days non rescourse loan. This was the best one yet. And of course they all have g mail accounts.

The Vic is where I stay. I go a couple of times in the winter.

Don,

I like that statement! Anyone can claim to be a guru. A while back I was getting all of the hype on "Rich Dad Poor Dad" and went out and bought his books. Silly me, I got home with the book and then decided to google the author. Only to find out he is just another fraud. I threw the book away still wrapped up.

Good job Frank! I am happy for you.

I should have been more clear. I am looking at that is for sale is Orlando, FL. Banked owned, asking 6.8MM, NOI 1.4MM. It used to be a Ramada and now is being marketed as an extened stay. They are popular in Indy to a mix of people. A lot of them stay there for long periods of time. I know a guy who has a couple of them. But, Orlando is a completely different market than Indy.

Has anyone had experience with Extended Type Motels?

The complex is actually located in a stable middle class neighborhood and across the street from a couple of other complex's. If you know Indianapolis, it it just south of BroadRipple. I am trying to get a price the rehad that needs to be completed. I know the streets in min. repair as there are some pot holes. Rents are about $200 less than the market.

The figures I received are just from the realtor, I have not done any research on this property yet, just got the package over the week end.

I agree that 8M is way to high and would not make any money on it.

Bank note for 22MM, bank is wanting to sell for 8MM. Has a negative cash flow right now.

398 Units, 1,2 and 3. New roofs in 2004. Updated units 1998 and 2003-04.

Rents are below market rents. Complex's nearby have a vacancy of about 9%.

Gross Scheduled Income: $2,414,064
Loss to Lease: ($13,340)
Gross potentail Income: $2,400,724

Vacancy Loss: ($518,886)
Rent Concession: ($147,515)
Delinquencies/Bad Debit: ($157,515)
Total Vacancy Loss: ($1,093,187)

Net Rental Income:$1,307,537

Utility Charges: $32,201
Late Fees $58,409
Applicatiion Fees: $8,705
Misc. Income: 67,029
Total Other Income: $166,344

Effective Gross Income: $1,473,881

Real Estate Taxes: $139,664
Property Insureance: $89,244
Electricity-Occupied: $19,371
Electricity-Common/Club House: $43,756
Electricity Vacant: $29,573
Gas-Occupied: $23,116
Gas-Common/Clubhouse: $3,242
Gas-Vacant: $35,125
Water/Sewer: $77,314
Trash: $15,377
Total Fixed Expenses: $475,782

Payroll, Tax & Benefits: $542,428
Management Fee: $49,036

Maintenance & Repairs: $73,388
Turnover: $71,901
Contract Services: $158,815

Advertising/Marketing: $9,292
Administrative:$104,168
Total Variable Expenses: $1,009,028

Total Expenses: $1,484,810
Net Operating Income: ($10,929)

2009 NOI Was $203,877

I recall him but, I don't recall anything about him. Flashy cars, big boat in the water, work 5 hours a week....all seem to go hand in hand with the TV guru's.

I know a lot of the guys from the 80's have filed BK, done jail time or are just broke. I am sure there are still some making it big and doing well.

I did not realize 45 was old! Well, almost 46. Now that scares me!

Someone requested this info.

Property has to be seasoned at least 12 months. OO only. Has to be at least 30% equtiy in the property. I have credit partners who will purchase the property and then put it in a land trust and the buyers will have 2-5 years to improve credit and get conventional financing. Property values from 75K - 400K.