Anything above that magic number 4 will be a commercial loan that will be more flexible in the sense that your group can give the bank the pro forma of the property in question and they will fund the deal off that information.

I would tell him he must form a partnership between him and the other cash investors he has, and that new partnership becomes the partner in the next deal(s).Don't add on any partners with split roles.  

You should include these costs in your Cap Rate calc - don't take their pro forma stuff.

If yourself and husband form a partnership vs.

This apt is far from stabilized and it is going for 11 cap using pro forma numbers.

There are banks that lend based on the pro forma of the asset itself and while you still need to qualify, they look at the asset more than they look at you.

In short, pro formas showing $300 or $400 per month in free cash can easily be swallowed up by the cost of a new furnace or roof or in some cases by a difficult tenant who knows the rules of the game.   

I can work on a T-12 or a Pro-Forma package over the weekend.

Weekly status reports are tracked for we and our investors to make sure things are tracking as much as possible to our pro forma projections.

form a 6 person group of newby friends.