All Forum Posts by: John Quiles

Hi guys,

I'm on a very very frustrating scenario here.  We are buying a portfolio with 50 rental properties in Macon, GA for $1,3MM. That's $26k per property on average but the actual value of the properties fluctuates between $25k and $60k.  Even though the deal has a gross rent $28.7k/mo gross rent, the total expenses are only $9.5k/mo since the tenant pay utilities, the lenders won't lend on it because the value per unit is below $50k.  I don't get it.  I have a NOI of 230k with a cap of 18% (13% using 50% rule) which means there is plenty of money left to pay the loan.  To the point that I can go as low as 40% vacant and still be able to pay the loan.  Why instead of worrying about my ability to pay the loan they are more worried about the fact that each property doesn't appraised for $50k or more?  It make it sound like they are more willing to lend on a ok deal with properties worth $50k than an awesome deal with cheaper properties. This deal cashflow all day long and it is a pretty safe deal.  Why is so difficult to find a lender for it?   

@Peter Mokan Send me a PM.  What can you bring to the table here?

Hi guys,

Hope you can help me here. We are buying a portfolio with 50 rental properties in Macon, GA. That's an hour from Atlanta.

- PP $1.3MM

- 100% occupied

- $28.7k/mo gross rent

- $9.5k/mo expenses

- NOI 230k

- 18% CAP (13% using 50% rule)

- The management company that currently takes care of the properties manages 800 properties in Macon, GA and have only 3 vacancies. Rental market is rock solid in Macon.

The deal is amazing but our previous partner is not picking up the phone lately and we are starting to think he is not in anymore. It could be spring break, but also it could be he is hesitant about about putting such a large amount of money.  Is it too late to find a partner or a private lender for this size of a deal with 10 days left? What would you do if you can't get an extension?

@Mark Allen Hi Mark can you send it to me too?

@Kyle Nelson Thanks!!!!

@Brian Pulaski  You are right on that one.  Thanks!!!

@Davis Sessums You are right.  We gutted the first one and just kept one wall and re-do the whole thing brand new.  The other one was a regular rehab.  The other one was gutted like this one.

I just finished this deal in Decatur, GA and I am wondering if it looks better than the other one I did in Kirkwood. I would like to know your opinion since I'll be using that picture for my webpage.

 Bob haven't receive your PM yet.  

@Bob Green Yes it is for an acquisition.  I do have the current rent roll.