All Forum Posts by: Jason Grimm

@Oliver Carey Interesting. Would you mind fleshing that out a little?

@Simcha Davidman Thanks for the thorough breakdown. @Dennis M. The numbers I used for NOI were based on an average rent of $480. I'm still waiting to hear back with the actual rent numbers and what sort of monthly payment the seller would go for. I actually used to live in one of the apartments about 11-12 years ago and paid $435/mo. My wife and I moved back to the area about 3 years ago and could only find a single apartment for rent in the area. It was a 2/1.5 in B-/C condition, and was listed for $650. The apartments in question appear to be in better shape than the one we tried to rent, but are owned by a mom & pop type. It's a series of 2,3 & 4 unit buildings, built in the '80s, all in good shape with repairs being made regularly (as far as I can tell). A walkthrough would clear this up. The listing agent said to make an offer. Let's assume I can come up with an offer number that actually cashflows. I'm concerned about the steps moving forward. I don't have the money for the down payment, and can't think of a way to come up with by myself in the foreseeable future. I would definitely need a partner of private money to do this deal. Aside from asking on BP, I don't know where to look for those funds. And I'm nervous about my offer being accepted without any prospect for actually being able to purchase. I suppose I could write in a financing contingency to cover myself (any other tips for contingencies?) but IF my offer were accepted, how much time would I typically need to close? Can I build in a fund-raising timeline in the contract? How long for due diligence, etc? Thank you for your help.

Thanks, @Simcha Davidman. After running some numbers, the NOI is approx $90000 annually, and local cap rates between 6 & 8%. Currently all units are occupied and the average rent is 480/mo. Low for the area, a 2/1 typically goes for 650/mo. Based on using 1 month's rent = 1% of value, that would make it "worth" 960k. ARV with rents to market rate would boost that number to 1.3M. It's listed at 1.25M, which doesn't seem like a deal. Monthly NOI would be appx. $7500. Once I subtract the monthly debt payments, I could be barely cash flowing, if at all. That would leave little to no room to make any improvements or save for cap ex. Even saving 1000/mo I wouldn't have enough to refinance out after 24 mo. But this is all estimated until I find out what the seller is actually willing to go for. Have I missed anything?

Thanks, Tim. After running some numbers, the NOI is approx $90000 annually, and local cap rates between 6 & 8%. Currently all units are occupied and the average rent is 480/mo. Low for the area, a 2/1 typically goes for 650/mo. Based on using 1 month's rent = 1% of value, that would make it "worth" 960k. ARV with rents to market rate would boost that number to 1.3M. It's listed at 1.25M, which doesn't seem like a deal. Monthly NOI would be appx. $7500. Once I subtract the monthly debt payments, I could be barely cash flowing, if at all. That would leave little to no room to make any improvements or save for cap ex. Even saving 1000/mo I wouldn't have enough to refinance out after 24 mo. But this is all estimated until I find out what the seller is actually willing to go for. Have I missed anything?

Hey guys. I'm a rookie investor/agent mostly interested in multifamily for cash flow. I came across this 20 unit portfolio on my local MLS, and reached out to the listing agent. They said they would be willing to do seller financing for 24 mo with a down payment probably between 100-150k. Instead of throwing in the towel due to lack of money, I thought I would throw this out to BP and see if somebody can point me in the right direction, whether that's hard money, partner, etc. The numbers look good, I just don't have the resources or experience to come up with such a significant down payment. Any advice or help would be awesome and greatly appreciated.

Hey guys. I'm a rookie investor/agent mostly interested in multifamily for cash flow. I came across this 20 unit portfolio on my local MLS, and reached out to the listing agent. They said they would be willing to do seller financing for 24 mo with a down payment probably between 100-150k. Instead of throwing in the towel due to lack of money, I thought I would throw this out to BP and see if somebody can point me in the right direction, whether that's hard money, partner, etc. The numbers look good, I just don't have the resources or experience to come up with such a significant down payment. Any advice or help would be awesome and greatly appreciated.

Sounds awesome, @Jonathan Bolano. Glad to hear things are going so well. Nothing new to report here, however. Still trying to get things rolling.

Thanks for the response @Jack. I'll have to digest this for a little bit, but I'd love to hear more details of you've got the time.

@Jack Medford I'm interested in the idea of selling a property to your LLC. Never heard of or even considered that a possibility. Could you walk me through it, either here or in PM? I'm effectively in the same position as @Albert L. Thank you.
- Jason

Yes sir. Thank  you so much, Andrew.