All Forum Posts by: Sam Shah

Hi Everyone,

We are considering purchasing a 12 unit property in Hartord, CT area. We don't live in the area. We live upstate NY. We have a good agent who has sent this deal our way. I'm just doing some due diligence in terms of what the community here thinks of the area. The property is located on Capitol Ave. Buildings have been as a condo status since before the current owner purchased it.

I'm not familiar with how this works when apartment units have been set up as condo status and the pros and cons associated with that. Looking for help from the fellow investors in the area here.

Any comments you can provide regarding the area or about the apartments set up as condo status or anything else I should know about, would be appreciated!

Thanks in advance!

Sam 

Have you looked at using Google docs?

https://docs.google.com

@Danelson Rosa Not really sure but would love to get in touch and discuss together.

@Danelson Rosa I would be interested in collaborating in developing this sort of tools. I have a tech background as well as real estate investment background. We should chat. 

We usually look at the cap rate as well as cash on cash return. We try to target a cap rate of 8+ and cash on cash return of 12+

Though keep in mind that cap rate differes from location to location. So you should try to creat relationship with some commercial brokers and try to get an idea about what the average cap rate is for that area. 

Again, there are more things to look at but we start from here and then if a property matches the criteria then we dig deeper.

Hi Brian, this is really great information that you're sharing with BP folks! Can you talk more about your process in terms of how you approached the potential accredited investors as well as how you went about pitching for this? Not sure if you have any template pitch deck that you work with but anything that you can share would be great. My goal is to get into syndicating larger deals like you. Trying to learn anything and everything regarding this process. 

Thanks again for sharing and congrats on this deal!

I'm loving this discussion as I'm also looking to invest in an apartment complex ideally 16+ units. I recently looked at a 23 unit and was about to go into the contract but found something that made the numbers not work anymore so I'm back in the market. I'd love to discuss partnering possibilities to get into a $1M+ deals.

I would be interested in hearing more about this as well. Just recently I started inquiring about this and found out that it could be as high as 10% of Gross rent. I was under the impression that 6% was more common. Though, I'm talking about upstate NY (Hudson valley area - About 2 hrs from where you are)

Appreciate all the help here. Thanks @Scott Buchholz and @Dennis H.

@Brian Adams that's great! Im new to this world and trying to soak up all the knowledge from people like you. 

Can you help explain how the appraised camelback so much higher than the purchase price? I guess what I'm trying to understand is how can the seller have priced it so low?

Again, apologize if this is fairly obvious to everyone else here. Like I said, I'm new and trying to understand the process here. Thanks in advance and good luck with this deal!