Duplex Deal - Looks Good to Me! Yet no one's interested?

[Jose Alvarez]

So after years of studying real estate investment (and also years in site development) I have what I think is a nice deal put together/under contract, and it looks good to me! So why when I show it to potential investors is the response not as enthusiastic as I imagined it would be? On BP they say "if the deal is good, the money will find you"...certainly not my personal experience thus far! Is it how I am presenting it? Is my math off? At the risk of getting a royal public smack down, I am going to provide a link to what I send out to potential investors in hopes that the feedback will be a help to others as well as myself. So here it is Investor Package what's wrong with it? Thanks!

[Michael Le]

Only taking a quick look at your package my comments would be

- Margin seems low for a development deal. There is higher risk with costs and execution and longer timelines involved and yet your sale price is only 17% higher than your costs.

- Not sure why you are modeling cash flow when you plan to sell.

- Unless your cash flow model is because you're trying to calculate NOI and sale price based on that 8% cap rate. Which because these are duplexes they will be sold on comps and not income, so you need to confirm your sale price.

- I don't see any costs relating to the sale in your model. Realtor, title, etc.