All Forum Posts by: Account Closed

@Jason Graves Thanks for the input. I’ve bought a few residential properties myself. I’m in Mobile, AL.

@Jay Hinrichs obviously I need to ask more questions when I meet with him. This whole situation makes me never want to partner with anyone....

@Kealoha Pilares It’s not necessarily about being “HIS” partner. I’ve done a few flips myself. It was a headache. I made descent profit though. Partnering with someone who does all the rehab work and I just get a check seems like the way to go...

@Henry Lazerow Thank you for your reply. I’ve never partnered with anyone on investments. I’m a doubter in every area. Ugh...

@Bryan Devitt I Question every deal. I’m a natural worrier. Geez... Comparing it to marriage?? Lol def don’t wanna do that!

@Kealoha Pilares Thanks for your input! Seems clear...

@Jake Stuttgen I’m meeting with him Tuesday evening. I’ll get more details then. Honestly, I don’t know where to start with all of this....

He is an experienced investor who I’ve wanted to partner with for a while. He seems to be very successful. He is asking for $100,000 Hard cashup front. Looks like return is 8% cash on cash. I need guidance. These are the details:

64 unit complex $2,375,000.00

Total loan amount $1,995,000.00

Down Payment $380,000.00

Upfront repair costs $300,000.00 (all new roofs, curb appeal, and vacant units)

40 2 bedroom @700.00

24 1 bedroom @600.00

Gross annual rental income $508,800.00

10% vacancy $50,000.00

Effective gross income $457,920.00

Expenses:

Insurance $12,000.00

Taxes $11,800.00

Utilities $60,000.00

Dumpsters $9,000.00

Accounting $7,000.00

Maintenance Reserves $38,000.00

Management $40,500.00

Total expenses $178,300.00

NOI $279,620.00

Financing $154,245.76

75 / 25 split Roughly $94,030.68 / $31,343.56

8% cash on cash return for investor

$10,000.00 needed up front and the remaining at closing