All Forum Posts by: John Quiles

20 or 25%

I need either crowdfunding, a portfolio lender, or a blanket loan for the deal I have in Macon GA. There are 50 properties generating around $28K a month in gross rent. Properties meet the 2% rule. All the numbers look great but now I need to find financing for a million. Any lender that would do this deal?

I need either crowdfunding, a portfolio lender, or a blanket loan for the deal I have in Macon GA.  There are 50 properties generating around $28K a month in gross rent.  Properties meet the 2% rule.  All the numbers look great but now I need to find financing for a million.  Any lender that would do this deal?

@Brian Adams let me know if you want to take a look at this deal.  @Percy N. looks like he is in if you think the deal has legs.  Let me know.

@Jeff B. you are totally right.  That's why I needed to partner with someone who has experience on these kind of deals.

@Tyion Bridgeman I agree about the 4% but they wouldn't push my LOI unless I accepted the 4%. The problem is there are 3 guys involved and that's why is higher than usual. The owner was managing the property himself ans that's why is not there but I'm accounting for that. He was asking about $6.5MM but he'll sell it to in the $5s. He already told my broker. I'm thinking, if I can get it low enough, I may assign the contract instead of actually buying it. Any advise about doing that?

@Brent Shryock thanks for the advise.  I rounded my expenses up to 50% as my worst case and the numbers still work. Are you saying I should go up to 60%?  I don't know about employee salaries and benefits, but I do know that the owner and the maintenance people all live in the complex.  I'll get that info during the DD period.  How much should I put in reserves? 5%?  Since you are a Lender how much do you think its going to be the closing costs?  ballpark

@Mike Nelson Expenses include the following: taxes, water, electricity, insurance, telephone, supplies, legal professional fees, garbage, repairs and maintenance.  

The income is mostly rent (176 units between $490 and $725) and you may get few bucks with washers and dryers, and soda machines but I don't know how much is that yet.  It shouldn't add that much.

@Tyion Bridgeman the property is 1965, B- and B-. And I agree about the expenses.  They do look low. It includes: taxes, water, electricity, insurance, telephone, supplies, legal professional fees, garbage, repairs and maintenance. So it looks like nothing major have been left out.