All Forum Posts by: Joe Gleason

Thanks for the suggestions Mike. While the seller didn't sign the letter of intent (non-binding anyway) it has prodded her along and we are working to come to an agreement.

In the meantime, I have found there may be some tax credits available to assist in the purchase and rehab. I have a meeting tomorrow to see exactly what strings are attached.

Also on a positive note, the seller did go ahead and replace the roof over the theater and installed individual gas heating units to all the aprtments and storefronts. I'll need to verify the numbers of course but it looks like the heating cost has dropped by 40%. Not insignificant in the Northeast!

That's a heck of a good interest rate on your financing. I thought commercial was closer to 9%.

Even if you adjust your expenses to 50% and financing is more than you've shown it is still looking like a great deal. Congrats!

Between Thanksgiving and Christmas the owner contacted me. After several extensive conversations with her I sent her a letter of intent (non-binding) last week. She was willing to come down from her price and I was able to satisfy my own needs to make the deal work. If she accepts the letter of intent then its full steam ahead. So, I'm waiting for her response at the moment.

Hi Ken,
Holidays have slowed the deal down. Working out the nitty gritty details now and hope t have a signed agreement shortly. Yes, there will be seller financing involved. I've got another thread around here somewhere about the property. I'll be updating it as soon as I've got definite news to report.

Hi All,
I've noticed several downloads of the file I posted here. Feel free to post or email me any comments especially if you notice any errors in calculation! :mrgreen:

I ended up passing on this one, mainly because an earlier opportunity has sprung back to life (commercial 18 apartments, 9 stores, 1 theatre).

Hi Adam,

I've attached the one I use.

Hi Jay,

Rule of thumb is 50% of gross rents for expenses. NOI is gross less expenses.

Jon,
I'm just making sure I understand the typical fix-and-flip formulas. Is this example correct:

ARV (AfterRepairValue) = What it should sell for after repairs, correct?

Assuming an ARV of $250k and Repair costs of $15k then using your formula gives the following result:

(250k * .70) - 15k = $160k

Thanks for the info. I have a couple of questions in to the seller. Will let you know how it turns out.