BIG multi family development idea: need help!

[Justin Gottuso]

I have a lead on a BIG commercial property that’s able to be converted into a 100+ unit multi family property. Anyone have experience in assessing the financials and getting funding for big projects like this?

[Greg Dickerson]

Originally posted by @Justin Gottuso:

I have a lead on a BIG commercial property that’s able to be converted into a 100+ unit multi family property. Anyone have experience in assessing the financials and getting funding for big projects like this?

You have to work it backwards. Start with determining what the net operating income would be then calculate value based on CAP Rates in the market for that type of property. You need to make sure the NOY will service the debt and that the value will come in 25 to 30% more than cost in order for the project to be viable for financing. In order to secure funding you're going to have to have serious experience and deep pockets or you will need to find partners that can fill those roles