All Forum Posts by: Peter Tiberio

Hello, I'm looking to find a small-midsize (8-40 units) apartment deal in Memphis, TN. If anyone can point me in the direction of a broker or fellow investor in that space I would appreciate any help. Thank You!

Awesome! Thank you @Melanie Johnston

Hello, I'm likely moving my business to the Phoenix/Scottsdale area for a number of reasons (both personal and professional). Been in the Seattle area since 2013 and have done mostly home flips and new construction projects. 

In Phoenix looking for value add multifamily deals. Ideally good location, distressed, small-mid size multifamily properties. As of now I'm looking at coming down the weekend of Jan 16th. Any agents/wholesalers with something that might be appealing would be a great help.

Thanks,

Peter

@Adam D Rinehart

I'm pretty conservative when it comes to analyzing creative deals like this so take that into account while you read this. Management number definitely seems low.

My biggest concern (aside from pending approval to build 12 units but you have contingency in place) is the structure of the loan. Interest only always scares me especially in a market which is very high (assuming the market you're in is). I'm sure you've considered this but the possibility of the value of the building being less than what it is today, or value of the building less than the current value + cost of improvements could leave you in some trouble. Just my thoughts. Everything else seems solid, I love the idea of investing in a small growing college town

@Jeffrey Enkey A $43k difference seems big on a bank owned property (assuming all offers were cash and home was being sold "as-is"). If those two things are not accurate and they weren't all cash offers and maybe the home wasn't being sold "as-is" the obvious answer would be that things came up after mutual and the Buyer was able to negotiate the price down due to maybe an inspection or something else that may have come up during a due diligence period. Other concern would be if your offer wasn't cash maybe their offer was. Third thought is maybe they waived real estate commissions, something common if the buyer is their own agent. Without knowing much about the offer process these would be somethings I would consider. Could be any combination of the above scenarios.

@Jeff Owen Cap rates in smaller areas away from major cities can be tough. I can't say I know Franklin, TN but that's what makes me think it's a smaller city with not many small multifamily building transactions. My advice would be to be similar to what Johnathan said and find the nearest city that you feel has a cap rate that you're comfortable determining and then from there discount or add a premium to the cap rate of your city and then your neighborhood.

When you say no local comps is that in the direct neighborhood?

Obviously I don't know the city or neighborhood and don't know cap rates that would be appropriate but using a 5% cap rate and the numbers you provided previously (I think it best to always factor in a management number as you might want to place it into management later and would rather have that priced in than not). Your numbers provided above give you an NOI of $21,550. That NOI and a 5% cap rate (again don't know your area at all) gives you a ARV of +/- $430,000. 6% cap rate gives you a ARV of +/- $360,000

@Bob Malecki Thanks and I'll see you Thursday

@Steve Hodgdon Thanks Steve!

I'm looking at purchasing a note (potentially my first note). I've read/listened to a considerable amount on the topic but one question still remains. During my due diligence I have learned that the property has a considerable amount of property taxes that have not been paid. The property is in New York. Does anyone know if the delinquent property taxes are passed through foreclosure or is there a way to have them forgiven (for lack of a better word). It does not seem the taxes have been sold. Any information on the topic would be a great help. Thanks!

I'm looking at purchasing a note (potentially my first note). I've read/listened to a considerable amount on the topic but one question still remains. During my due diligence I have learned that the property has a considerable amount of property taxes that have not been paid. The property is in New York. Does anyone know if the delinquent property taxes are passed through foreclosure or is there a way to have them forgiven (for lack of a better word). It does not seem the taxes have been sold. Any information on the topic would be a great help. Thanks!