All Forum Posts by: Shawn C.

@Seth Wilson What is the purpose of having me sign a NDA then? I would think the purpose of me signing the NDA was so I could get complete access the the information required to make an educated offer. Also, what are the standard clauses for Multi-family? This is my first venture into something like this?

Thank you for your comments they are greatly appreciated. Like I said at the beginning of my post mi just trying to learn and the learn the stand the process of multi family.

@Aaron Montague

This was of great help and I thank you very much. That is very good advise and will help me greatly as I enter the Multi-Family Market. I really appreciate your advice as well as the others that have responded so far.

@Brian Cowan

No offense but I believe your asking price is way to high. If you follow the 70% of the ARV minus repairs your asking price should be at $215,000.00 including your assignment fee.

This is how your numbers look.

$3330,000.00 ARV

$30,000.00 Repairs

$21,000.00 Real Estate Commission at 6%

$17,500.00 Closing costs and Buyer Concessions figured at 5%

$261,500 Grand Total- This does not include closing costs when property is purchased from you, holding costs, hard money loan points and payments and overages.

Because of these numbers I feel your asking price of $255K is to high. 

You may want to see if they will come down in their price and include seller financing, then it could make this a more attractive deal.

If you are able to bring the numbers closer to the 70% of the ARV minus repairs I may be very interested.

@David Womack 

Thank you for that very interesting perspective. I will keep plugging away and see if we can come to mutually beneficial compromise.

Thank you for taking your time to respond, it is greatly appreciated.

@Jamal Okon 

Thank you for your comments. I was thinking about just forgetting the deal but I also don't like to give up easily. I did ask if he is not going to allow me to see that paperwork then would he allow me to have a management company of my choosing as well as a building inspector inspect the building so I could makes some type of educated offer to him instead of just pulling a number from my but to send him. I am waiting for his response.

I really appreciate you responding to my post and assisting me with the learning process. All suggestions and criticisms to help me become a better investor are greatly appreciated.

Thank you for your time.

Shawn

@Nick L. The apartment building is not in Austin, it is another state entirely. I always ask to see if seller financing is an option. I like to prepare fore the worst and hope for the best. I like as many options as possible.

I am not sure how I can submit an offer without really knowing what the numbers are based on. He wont even answer me on why he states it is 100% occupied (7units) but only shows rents for 6 units. The seller also had me sign a NDA and I offered to show him proof of funds for more than the 20% required so I would think that could qualify me as a serious buyer. 

Like I previously said, I am new at multi-Family investment properties and I really appreciate your comments.

Hello Everyone,

Let me start by telling you I have only done Wholesaling, Fix & Flips as well as New Construction at this point in my real estate investing career. I have finally decided to try Multi-Family investing.

I contacted the seller about a 7 unit apartment building they have for sale and the asking price is $199,000.00 and they are willing to do seller financing with 20% down. I informed them I have more than the 20% down and I am willing to show proof of funds. After I signed the NDA, they sent me what looks to be an incomplete CAP Rate sheet. They have state total Gross Rents are $47,220.00 total expenses at $18,176.25. Net Income is listed at $29,043.75. They don't have anything listed for property management fees, capital Improvements and I assume they pay all utilities.

They stated it is 100% occupied but on their spreadsheet they only show 6 units rented.

I requested a Profit and Loss statement, Schedule E for the past two years as well as the past tow year worth of tax returns as relating to the property.

Their response is they would not supply that information other then the CAP Rate sheet(they had already provided me) unless a purchase price presented and agreed upon and money is placed in escrow.

Now I know this is one of the first properties I am looking at but am I wrong to ask for this information? I am also going to want to have my property management team and possibly a building inspector inspect the property after reviewing the paperwork to see if it is even worth pursuing and I am now afraid that will also be an issue? Should I just walk away?

Any help or suggestions you can offer will be greatly appreciated.

Thanks,

shawn

I am interested in the property you have listed. Please send additional information to: [email protected]

Thank you for your time and I am looking forward to doing business with you.

I am interested in the properties you have listed. Please send additional information to: [email protected]

Thank you for your time and I am looking forward to doing business with you.

I am very interested in this property. Please send the NCD and additional information to: [email protected]

Thank you for you time and I look forward to doing business with you.