possible 1st deal
8 Replies
Brian Jones Investor from Richmond, Virginia
posted almost 3 years agoHello all I was wondering if anyone thinks it's good idea to assume a assumable loan from a property cash flowing about 3k after all expenses?any ideas as to the best way to approach this owner who is willing to negotiate other than a sub to?
Brian Jones
Rob Beland Investor from Leominster, Massachusetts
replied almost 3 years ago@Brian Jones Im assuming you mean $3K/year which is pretty tight. What are the rest of the income/expense numbers?
Brian Jones Investor from Richmond, Virginia
replied almost 3 years ago@Rob Beland no sir its 3k a month after expenses ill give you the rest of the details when I get in front of it as not to give you the wrong numbers..
Brian Jones
Jeremy Pace from Pittsburgh, Pennsylvania
replied almost 3 years agoi'm interested in these details as well, thanks!
Sean Ploskina Investor from Virginia Beach, Virginia
replied almost 3 years agoMake sure the loan really is assumable. It is rare these days unless the loan was originated a long time ago.
Confirm all expenses via tax returns and income from deposits and rent rolls.
When you say expenses does that include debt service? Check to see their loan is something you can afford. If it is cashflowing 3k per month it is a larger apartment complex so you will really need to check the condition of the property.
Sean Ploskina
Brian Jones Investor from Richmond, Virginia
replied almost 3 years agook Gentlemen @Rob Beland @Sean Ploskina @Jeremy Pace We have a assumable VHDA loan with a balance of 1.1 million asking 1.5 million sales price with locked interest of 5.22 % NOI of 177198 Total expenses 89262..you have a debt service of 115536..capital reserves of 7250..loan payment of 3k a month..95% vacancy 2014 year was income of 218657 total expenses 90738..
Brian Jones
Brian Jones Investor from Richmond, Virginia
replied almost 3 years ago
@Sean Ploskina I am going to look over the property next week 90 % was newly renovated back in 2013 with new HVAC & roofing through out the entire complex
Brian Jones
Sean Ploskina Investor from Virginia Beach, Virginia
replied almost 3 years agoIs your yearly debt service the 115k? If so what is the 3k per month loan payment.
I am assuming you meant 5% vacancy and 95% occupied
If your 2014 income was 218k -expenses 90k= 128k- debt service 115k=13k yearly cash flow so closer to 1k per month cash flow
Sean Ploskina
Brian Jones Investor from Richmond, Virginia
replied almost 3 years ago@Sean Ploskina I would have to email you the entire financial page cause im sure I screwed up something while writing
Brian Jones
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