Brrr Commercial 130+ unit Apartment Complex

2 Replies

Hey All!

Listening to BP podcast #212, and I know of a few properties in FL I would love to get under contract, approach a global property management and investment firm to manage the transaction, the property management and the eventual upgrades around the place.

Is this possible with no money out of pocket and paying everyone on the backend?

What do the numbers need to look like to make this a plausible situation?

And finally, I don’t live in FL or have any intention of going down there, is this an outrageous stipulation?

I’d love to open a discussion about these points!

You need money to get a property under contract. Usually it is 1% of the purchase price. In many cases that money goes "hard" (non-refundable) on the day of the contract execution.

On the other hand, you may have found a needle in a haystack - you are direct with owner, there are no brokers involved, the owner is clueless about the market and is willing to sell you a $10M property (you have an appraisal for it already) for $5M on 100% owner financing. In this case you're golden :-)

The first question I would ask is if you have any experience? 

To see what your numbers need to look like I would contact a pm firm and investment firm to see what their costs are. You can run your number based off their estimates. For rehab you could do a per unit cost estimate to get an idea of the total rehab cost.

Promotion
Apartments.com
List, Screen, Lease, Get Paid, Manage.
No Better Place to Lease Your Place
Owners rely on the #1 rental site to get the best results from their rental properties.
Get Started Now