All Forum Posts by: Spencer Slaton

Hey Everyone - 

I'm ramping up my knowledge to prepare for my second multi-unit next year and want creative financing strategies to be a part of my tool set. However, I can't find sources that layout the details on how to execute them (i.e. paperwork, process, etc.). I'm a pretty heavy book person and often here "whole books are written on these things" yet I can't seem to find them. Where should I go to learn these things and/or how did you?

Also for specificity, I'm looking for information on any of the following strategies:

- Private loans (one lender -> one property, not necessarily using a pool but that would be great to know too)

- Partnerships 

- Seller financing

- Lease options

Thanks in advance,

Spencer

Hey everyone, I'm looking to purchase a multi-unit building (2-4 units) in Chicago (Logan Square / Bridgeport). The price range is in the 200K-400K range, and I'm having a major issue in my evaluations. To set my baseline, for a sale price I need one of two things to be accurate and i'm having issues with both.

• Area cap rate - I have no way to accurately determine what cap rate should be for my areas. I've heard everything from 5%-6% to 8%-10%.
• Comparables - There just doesn't seem to be any source online to generate an accurate comparable. Most sites have a far too small sample size and are often far different than my building.

How do people get passed this issue? If any of you have bought in these areas or Chicago in general what was your target cap rate and why?