All Forum Posts by: Michael V Akbar

@Sam Grooms, @Todd Dexheimer , @Michael Le 

Thank you gentlemen for your input.  I was away for over a week and am late in acknowledging your comments and support.  Thanks.

So this is the part that I am confused about as well. Am I correct that Capex is not counted in the operating expenditure, and as such is not reflected in the NOI? So my math in calculating the actual cash flow of the property can be very different than that of the seller. How do you folks typically approach that in negotiation?

@Sam Grooms and @Michael Le , Thank you gentlemen.  

Michael,

Thank you.  What an eye opener.  I am glad I asked the question and really appreciate the insight.

Best,

Michael

I know that there may not be a science for this but I thought wouldn't hurt to ask the question: 

Just for initial planning purposes is there a way to come up with a swag at annual capex number for a class B apartment as a ratio related to its NOI, price, on-going maintenance costs, or some other parameter, way before you go on with a full due diligence?

@Kevin Vandenboss thank you Kevin.  This is very helpful.  Have you thought about writing a book on this.  It would be a huge service.

@Kevin Vandenboss when would I arrange for and get to have the walk through, check out the roof, HVAC, heating system things like that for example.  What would be the timing and mechanism to arrange for that.  I warned early on I am really green on this stuff :) .  And Kevin thank you for so patiently guiding me here.

@Kevin Vandenboss   @Alina Trigub  @Grant Rothenburger  @Dan Bernstein @Angie Brooks

Thank you all for your incredible input. I have a follow up question.

If I have a list of items I need for due diligence, a) some requiring information to be provided and b) things like inspection of systems and facilities, would I provide that at the time I submit the LOI or at a later time?

Obviously I would like signing of the PSA to be subject to satisfactory result of those inspections which I also would like to use for further negotiation of price. So what's the sequence again because when the attorney is drafting the PSA or the CRE agent is helping me we may not even know what's all the issues. So I am confused about the sequence.

By the way am I doing this @name thing right to make sure you are notified of my response?

@Kevin Vandenboss @Alina T. @Grant Rothenburger @Dan Bernstein @Angie Brooks

Thank you all for your incredible input.  I have a follow up question.  

If I have a list of items I need for due diligence, a) some requiring information to be provided and b) things like inspection of systems and facilities, would I provide that at the time I submit the LOI or at a later time?

Obviously I would like signing of the PSA to be subject to satisfactory result of those inspections which I also would like to use for further negotiation of price. So what's the sequence again because when the attorney is drafting the PSA or the CRE agent is helping me we may not even know what's all the issues. So I am confused about the sequence.