Prior to getting the OM, I didn’t know reverse 1031s existed.

Assumptions: You did everything inline with your OM AND fulfilled your fiduciary responsibilities as managing member/GP (whatever you title is and whatever the specific responsibilities of that role).

So I got an OM on a 70 units deal and it metioned that some of the building on the property are in a flood zone.

He payed my exam and application fees and I plan om hanging my license with him.

Assume the following Pro Forma OM numbers (rounding):Gross Potential income: $895,000Effective Gross income:  $920,000Operating Costs: $330,000NOI: $595,000Asking: $6.1 milNow assume underwriting as done by me, my partner, and a PM with 15,000 units under management:Gross Potential income: $900,000Effective Gross income: $835,000Operating Costs: $335,000NOI: $203,000LOI: $2.5 milThis was declined.  

This meant that for the first three days of my week in OM I was scrubbing walls, applying layer upon layer of primer, and basically working from the moment I got up until I crashed on the floor at night.

Just b/c they list it on an OM or even in income or bank statements, doesn't mean you want to run the property with fly by night insurance or spit and bubblegum, or no marketing.

@om Account Closed it depends on your goals but I personally would involve more investors so that you can create a track record with more people and help scale the business on future deals.  

The first one, OM didn't even include maintenance expense.  

The lender doesn't want the borrower spending all the cash flow without adequate reserves and then an event happens for which they do not have funds to prop up the property etc.It's all based on the deal after the lender has reviewed the Om package and the operating statements in pre-screen as to what terms they will offer or if they will even give a loan on the property.