All Forum Posts by: Ryan James

Hey Zeke. Found this one an hour outside of Columbus while checking out another 8 unit property. I had a couple buyers in mind but both have moved on to larger properties in A and B neighborhoods in a little better condition. I found it beneficial to partner with a commercial broker my friend works with as he's well connected to buyers and already had a few in mind when i shared with him the numbers. We're spiting the deal 50/50. As a condition of our arrangement, he asked that I not attempt to find buyers to avoid a situation where we both bring an equally qualified buyer. 

Quick update. We were able to lock this property up under contract. I was fortunate enough my friend offered his partner who is a commercial broker. He knows two interested buyers in the Columbus, Ohio market. We made an agreement to split the proceeds 50/50. He walked me through the LOI and Purchase Agreement. We toured the property and found a lot of differed maintenance. Super fortunate this Brooklyn property owner had an outlier property in Ohio and wanted out.

We didnt discuss earnest money. This deal requires $120,000.00 cash to close or 5% of 2.4 mil. The seller will carry 15%. It is true that i may get cut out of the deal after 90 days. 

I'm not prepared to purchase this property as I don't have the experience necessary to oversee the improvements. I'd like to wholesale the deal. These are the numbers:

Current Valuation:

96 Apartments // 12 Buildings // 8 Units Each Building

(Qty 4) 2 beds $475 $1,900

(Qty 2) 1 beds $365 $730

(Qty 2) 3 beds $515 $1,030

Monthly Gross Rent $43,920

Annual Gross Rent $527,040

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Proforma Valuation After Rehab

96 Apartments // 12 Buildings // 8 Units Each Building

(Qty 4) 2 beds $625 $2,500

(Qty 2) 1 beds $550 $1,100

(Qty 2) 3 beds $700 $1,400

Monthly Gross Rent $60,000

Annual Gross Rent $720,000

Quick NOI $360,000

Stable Value $5,142,857 ( 7 Cap )

Max Cost Basis $3,600,000 ( 70% ARV )

Renovations $1,200,000 ( 12,500 per unit )

MAO $2,400,000

Hello. I came across the owner of a 96 Unit apartment complex that would like to sell his property. He owns the property free and clear. I'd like to put the property under contract for 90 days and include his willingness to seller finance 15% of the down payment. Which form do I email him to put a property of this size under contract?

Does anyone have some prudence to lend on this deal? 

I have a property (1156 Magdalyn Drive, Akron Ohio) under contract for $123,000.00. Unfortunately, there's a squatter in the property and no appraisal is possible. I've offered up to $2,500.00 to the squatter to allow an appraiser in the property and it doesn't appear this will happen. With the hard money willing to lend on a BPO with no appraisal, I'm looking at 3 Points to close, 30% down and 1% interest per month or 12% per year. As this property was purchased at an auction, there's 4 months holding time (2 months to get the deed and 2 months to evict the tenant). Buy and hold isn't really an option for me as the rent in this area is only $1,150.00. The property is 3 bedrooms 1.5 baths and 1,500 sq feet built in 1967 in a desirable school district.

$215,000.00 ARV

$123,000.00 Purchase

Rehab Unknown (Exterior looks great tenant told me the bathrooms and kitchen are dated 1970's)

$3,444.00 Holding Cost (Minimum 4 Months)

$36,900.00 Down Payment (30%)

12 % Interest

I could walk away and leave a $5,000 deposit or maybe wholesale the deal to a buy and hold investor. I was super excited about this deal before the 4 months holding and steep hard money; now I'm feeling a little jaded. With $42,927 out of pocket for 4 months does anyone have some ideas moving forward?