All Forum Posts by: Jordan Archer

What is the market standard for determining a property's Cap rate and NOI? Do you get a professional appraiser or is it just as off the cuff as it appears to be on Loopnet?

Are their certain expense items you can leave out, or is it very important to keep strict accounting records? 

If I buy a property where the market cap rate is 5% and I get it to a 6%, then I know I've added value. However, the accounting standard seems to be vague for how the market cap was determined. 

Looking for Passive Money Partners who expect a 10% Cash on Cash return.

I'm purchasing a performing commercial multifamily property between $1mil - $2mil , once the market cools off in the next year or two, and need to raise between $200,000 - $400,000 for the downpayment of the acquisition.

I'm offering a passive investment opportunity to an investor who expects professionalism, transparency, and a thorough understanding of real estate as an investment. My role in the partnership will be to identify, negotiate, finance and manage the property.

As a realtor, landlord and flipper, I bring a high level of experience to the table in the following categories:

1. Property Management

2. Deal Finding and Market Analysis

3. Due Diligence and Investment Protection

4. Profit Analysis and Maximization

I created the post in anticipation for the down turn in the real estate market; right now prices are just too high. Once prices come back down I will be looking for commercial properties (10 - 20 unit apartment complexes) that are in B-C markets that will allow for a 20% Cash on Cash return for any money invested (splitting that 50/50 with my partners) I'll be working with commercial lenders, so I'm raising money for the down payment.

Currently, I don't have any deals on the table, but I'm looking to network with individuals who would have interest in an equity position. The investment would be completely passive for anyone I'd be working with. I would be the one finding, negotiating and managing the properties.

My search will not be limited to markets in FL, where I live. I'm looking for any market that shows a strong economy and population growth in addition to showing good returns on a spreadsheet.

Please let me know if you have any interest as well as your criteria for a suitable deal.

Thank you.

@Alex Hamilton

Thank you for suggesting an alternative solution; I really appreciate it.

This is a route I have considered, and I would like to know from someone like yourself who has experience, what are the typical interest rates on these lines of credit?...assuming a credit score over 700.

Thank you

Thank you @Amy Aziz!

Investment Info:

Single-family residence fix & flip investment in Fort Pierce.

Purchase price: $98,000
Cash invested: $1,000
Sale price: $145,000

This property was bought in an area where the property didn't need any upgrades or repairs, so I sold it in the same condition I bought it in. This particular area heavily used FHA loans, so I had to wait the required 90-day FHA Holding Period before I could resell.

A very easy and low input flip. I used hard money to finance at 12%

This was found by marketing to probate leads.

What made you interested in investing in this type of deal?

I knew what price I could flip it at, so once the seller accepted the offer it was a done deal.

How did you find this deal and how did you negotiate it?

I found this through marketing to probate leads. I negotiated as a cash purchase (though I used hard money, so technically not) and closed in 30 days. I paid for seller closing costs.

How did you finance this deal?

Hard Money

How did you add value to the deal?

No repairs or upgrades were required, so I resold as-is.

What was the outcome?

Profited $22,000 after taking financing, purchasing, resale and holding costs in to consideration.

Lessons learned? Challenges?

The roof was replaced in 2005, but wasn't permitted. I thought this would be a major hang up for FHA, but it turned out to be a non-issue.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

This is the second deal I used Cogo Capital for. They got the deal done, but of corse they managed to charge me some additional fees that were not mentioned up front.

Looking for Passive Money Partners who expect a 10% Cash on Cash return.

I'm purchasing a performing commercial multifamily property between $1mil - $2mil , once the market cools off in the next year or two, and need to raise between $200,000 - $400,000 for the downpayment of the acquisition.

I'm offering a passive investment opportunity to an investor who expects professionalism, transparency, and a thorough understanding of real estate as an investment. My role in the partnership will be to identify, negotiate, finance and manage the property.

As a realtor, landlord and flipper, I bring a high level of experience to the table in the following categories:

1. Property Management

2. Deal Finding and Market Analysis

3. Due Diligence and Investment Protection

4. Profit Analysis and Maximization

@J Scott

Was this back in the early days of the recession? Just curious why you aren't doing foreclosures any longer?

@J Scott

Are you mainly flipping auction properties or REO's listed on the MLS?

@Alex Bekeza apparently the ductwork cleaning is only $200. After calling a few people I found out that the best companies will actually come out for 2 years after the initial cleaning to make sure all residual odors are eliminated.

Cogo is charging me 12% interest and there are a handful of other closing fees attached to that. Most hard money lenders I've reached out to charge a similar rate. Others charge less interests but require a higher down payment.