All Forum Posts by: Benjamin Haberman

 This is golden!!!!!!!!!! Thank you!!!

Hello!

I was invited to speak at our high school career day, which is this thursday. I am speaking to high school seniors and plan to talk about buy and hold investing. I was thinking of explaining how I figure out my deals (napkin method), but I am thinking this is too much for them. I might end up just talking about my flips. I don't know. If you have any ideas, please let me know. I am 33 and forget what its like to be a senior in high school! Thanks BP!

Real hardwood?

 Nothing better than being honest. lol

Why would you ever do this?

Bob,

I apologize if my tone came off as competitive. To be honest, I am new to commercial real estate, so your input is very valuable. Thank you. My original quote, "They would sell it for $12.5 Million but the deal still works out to be a 5.23% cap rate at $14 Million". I was just trying to say there was wholesale potential and even at a $14M sales price it was the equivalent to a 5.23% cap rate. I was saying that is a good thing and leaves a window open for whole sale. But I will admit, maybe that is a far fetched way of looking at the deal. Regardless, thanks for all of your input.

Matthew,

Right. But wouldn't it be worth it to put it under an option contract, then market it? I am trying to strategize so once I go out to the commercial brokers, I have rights to the property first. Maybe you are right though. The owner made it very clear that he didnt want to list it because he would lose business if tenants found out he was getting out. I agree with him there. 

Bob

The NOI is $732200.

$732,200/$14,000,000= 5.23%

now when the puchase price decreases, the cap rate increases. When the purchase price changes, that doesn't affect the NOI

$732,200/$12,500,000=5.86%

How am i wrong?

Bob. 

Getting off subject, I was asking about wholesaling a campground. Not sure where you are confused here. The NOI stays the same. If purhase price decreases, cap rate goes up . Am I wrong here?

@Account Closed sorry I didn't clarify. The cap rate is larger at a purchase price of $12.5M