Updated over 5 years ago on . Most recent reply
CapEx reserve account at selling
Hi!
Hope you guys are great.
Few weeks ago saw on the internet, might be youtube than the reserve account for capital expenditures in a multifamily property are handed to the new owner after selling. Is this the standart normal procedure in the industry?
Have been learning a lot with GC videos and he mentions that running a multifamily is, almost always above 35% expenses to be subtracted from the income but have been analyzing deals (+5 yrs old) and almost always the expenses are very little.
Love to have your insight. Thanks, by the way.
Most Popular Reply
@Fran Arti if you are suggesting any remaining funds either held by the property or lender for Capex reserve funds not spent is handed over to the Buyer upon sale - NO that isn't accurate or correct.
If I misunderstood your question, please clarify.