All Forum Posts by: Nic A.

Thanks in advance for the help here. What other organizations or services do you know of that supplement our tenants security deposit, rent, utilities, etc?

Quote from @Eliott Elias:

Give the owner a profit share of the development when it's completed 

 Can you explain this one a little more? Different Examples

Quote from @Mason Hickman:

Its off market. Its a quad that is worth a million based on current listings and recent sales. Would require a full rehab to get there. 

@Nic A.

Is the property listed or is this an off-market deal? I ask because the key is what's the property worth? He may want $650K and you may want it for $550K but I would be working to get a "meeting of the minds" for its actual value. An option would be to put it on the market and you get a first right of refusal. Find out what it is worth to the marketplace and then you can escalate $X over the highest bid if you want to purchase it. 

Hi all I have a dilema. I want to buy a property next door to a property I own. The objective is to knock the buildings down and put up condos to sell. Seller wants $650k and I want to buy at $550k. What are the creative routes to get this done? Perhaps giving 100k later somehow. Please don’t provide opinions on the market as my upside is pretty sizable. 

Hey team, in AZ we are not required to have architects when doing flips or rehabbing residential property. Wondering if anyone has used Upwork, Freelancer, etc. for blueprints. Any recommendations? 

Hi Team, I feel like I should step my game up on my inspections. What tools do you use that are awesome? Recommendations?
Moisture Testing? 
Mold Testing? 
Plumbing Scope? 
Laser Tape Measure? 
What else?

I know visual inspection is a bunch of clues. Please keep the discussion focused on tools.

Can a 4plex be sold based on Cap Rate ever at all? Its in the East Valley of Phoenix near Arcadia if that helps. 

Hi all, this is my first apartment complex and I am looking to do ground up construction. My business partner and I are acquiring 1 acre of property near Arcadia for about $1.2 million. We have closed on 1/3 of it so far and the other two sellers are down to sell.

Build 22 one bed one bath units and 23 two bed two bath apartments that are 500sq ft or 750 sq ft. 28250 sq ft total

Rough numbers @ $125/sq ft * 28k sq ft = build out of $3.5mm. Lets round up to a total of $5 Million in A&D, costs, etc.

Rent for 1 bed in the area averages about 1100, 2 bed is 1500. Gross Income (1100*22) 24,200+(1500*23)34,500 =58,700*.98 (2% vacancy) = $690k. In the area I have seen 15% expense factor rates on C class buildings. Lets go 20% for conservative numbers and cap rates are about 5% on C class properties as well. Ill use 6% for conservative estimates.

Mine will be an A property since its a new build in a B class area. So the math is 690k*.8/.06=$9.2mm valuation or what I can potentially sell for.

Is this math correct?

I have some funds in an IRA that I want to move out of the markets and into real estate. I had saw an article about this in BP but I cannot find it now. Anyone know of that article or have banks in mind that can tackle this with me.

Thanks!

@Andrew Johnson strong call my friend. Why would I stop what I am doing, when it has been relatively successful with little effort? In the time that I posted this I already went and put a purchase contract down on another property that should net 30k-40k. Aside from taxes if I do 4 flips a year that net at least 25k for 10 years I am at a my goal. Very doable. Needed a little reminder/reality check