All Forum Posts by: Jerry Stein

@Luke Carl I'm curious, what the CoC numbers like for deals in the last month or so with the folks you've worked with?

Newbie looking for some thoughts. 

I am under contract with a financing contingency based on the loan estimates I had received when I was evaluating the deal. My lender can no longer offer the financing product we were working with (and was written into the contract), and has suggested other options, including a few different ARM products.

Based on the products we are working with now, the CoC return for this STR has gone from 20% to 16.7%. If I were evaluating this deal from scratch, it wouldn't have made the cut for putting in an offer - 20% was my cutoff, and I wasn't considering ARMs for financing. My estimates of revenue come from comps that are similar using Pricelabs, and this is the CoC is based on the slightly better than average revenue numbers.

Numbers are numbers. I know everyone is different, but wondering how folks would approach this situation, what things would you consider in deciding whether to move forward?