When raising money for apartments,
How much would you guys factor in when raising funds to set aside per door?
This isn't just for fixing the place up, more so setting it aside
That you perhaps won’t need to go back for a capital call..
It depends on the size and condition of the porperty.
Are you refering to Syndication?
some lenders ask you to put some capital in reserve account while some investors do that anyway, by alocating 7%-15% of gross rent towards Repairs and Miantanance.
And some allow $250-$300 per door per year.
Yeah it’s syndication. We have been running our numbers based on a 25% down payment plus an additional 5% of purchase price so 30% all in all invested. But this would be for just normal operating capital. Not sure if there was an generic industry number people used.