Cap Rate Equals Net Operating Income Divided by the Property Value Net Operating Income is Gross Rents Minus Operating Expenses.

Operators?

If you want to be invited to participate with GPs in larger deals, you need to have one more useful skills to contribute to the partnership.Some skills that many operating groups need:- Ability to find deals- Underwriting, proforma analysis, rent comps, market analysis, etc- Due diligence and create accurate budgets- Asset Management- Construction Management- Investor relationsOr, if you have a high net worth, many GPs will provide equity in return for your signing on the debt.All of these things are valuable to operating groups, and if you're really good any one or more of them, you may be able to trade your skills for equity in a deal(s). 

We can get too focused on the potential cash flow without considering the consistency of collections, the wear and tear of the property, the turnover, and the headaches related to operating. 

Hi all - I'm a mobile home park owner and operator based in Denver.

Some make so much money doing what they do that handing some of it over to good operators is exactly the right thing to do.

Just to give you a bit of my background, I am the owner-operator of RAL's in GA.

We currently invest and operate our real estate investment sales business on the Treasure Coast (from Sebastian to Stuart) essentially Indian River, St.

@Bruce Lynn is pretty close, and maybe right on the money with some areas/operators. 20-30% is pretty common.

HML said an alternative is to change operating agreement to show >80% equity by primary borrower.To me, running credit on all the partners is the obvious solution before changing the operating agreement.