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5 January 2018 | 8 replies
Sponsor essentially “buys out” investors.I have 6 years of property management experience, 2 years of putting deals together, managing contractors, maintenance personnel, financial analysis, good relationships with local investors.Example Deal (One that I've analyzed recently):Purchase Price: $14,200,000 Down Payment: $4,260,000 Closing @ 2%(Estimate from CRE): $284,000 Sponsor Acquisition Fee (1%): $142,000 Cash Outlay: $4,686,000Cap: 7.24% NOI: $1,028,080 Debt Service (2.6% Float/4.5% IO/4.5% P&I): $9,940,000 ($258,440 / $447,300 / $596,400)CoC (Float/IO/P&I): $769,640 / $580,780 / $431,680 CoC Return (Float/IO/P&I): 16.4% / 12.4% / 9.2% Preferred Returns of 6%: $281,160 Annual Bonus of 4%: $187,440 Splits (35/65) 11-16%: $98,406 / $182,754 ($281,160)Investors get a realized rate of 13.9%Potential upside in first 18 months is annual gross rental increase of $106,200 Feel free to eat me alive, I've got a pretty thick skin.
27 April 2018 | 3 replies
But reading up and researching seems that there are multiple ways to skin this cat...Are there any other methods that make sense in this situation?
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19 April 2018 | 23 replies
Not only are these points important in sydicating the equity, a lender is going to want skin in the game and a track record for a deal this size.
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5 January 2018 | 56 replies
The buyer/ borrower may say Im so sick of paying someone elses mortgage and on the surface it sounds like they hate renting but there is always other emotional/lifestyle/psychological reasons for the purchase.
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11 January 2018 | 28 replies
Good luck man ..... for me when i went to school i always thought of that "Degree" as an "asset" that must pay dividend for 30+ yrs to come and also should have a minimum market demand .....so i went after Engineering ..and it paid more dividend that i could even dream ....So, my vote is for you to think "Physics/Chemistry/Math"and your world will be different..... example: A) you can do MAGIC just by spending 15 mins to identify best deal on the block using one math equation (simple regression) analyzing Comps that will take lot of years of experience to figure out ....and B) Guys with physics /subsurface background in Houston are killing by buying mineral right where everyone is fighting for above surface.
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10 January 2018 | 16 replies
If I was the bank, and I was trying to write a loan, this is what I see:1 - Purchase = $650k2 - Your skin in the game = 03 - The Loan I'm giving to you = 0 (See #2)
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22 January 2018 | 6 replies
This includes; roof, HVAC, plumbing, all surfaces, some wall removals, landscape, mold/asbestos remediation, foundation issues, sea wall repair/replacement, etc. 2021 +Once I move to SE FL, I do want to buy two/year 3/2/2 SHF homes and rehab these.
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11 January 2018 | 15 replies
Are you willing to install a covering for every surface on your property?
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4 July 2018 | 4 replies
--Only the area that failed needs to be abated, which would simply involve encapsulating the lead paint (properly scraping and painting it). " A failed test most likely would be due to unclean surface (window sill, trough or floor) or not cleaning it correctly.
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20 September 2017 | 10 replies
But still, I agree, there has got to be more to it then what is on the surface here.