I'll give you a 30% return on ~$50,000 on 10 unit purchase

7 Replies

I'm buying 10 units in Cincinnati Ohio.  I'll need up to $50,000 to close on the deal.  I'm willing to pay a 30% annual return on your money.  See the proposal here.

Let me know if you have questions, or if you're interested.

Originally posted by @Paul Gwilliam :

I'm buying 10 units in Cincinnati Ohio.  I'll need up to $50,000 to close on the deal.  I'm willing to pay a 30% annual return on your money.  See the proposal here.

Let me know if you have questions, or if you're interested.

Link is broken.

@Paul Gwilliam don’t know if you’re looking for input. I came up with a 7.29 cap for the portfolio. Again I am not real familiar with the area, tenant stability and area employment. But 7.3 cap seems that there is not room in the deal for upside profit. It would also be nice to see a proforma and area rental comps. Best of luck

Originally posted by @David Miller :

@Paul Gwilliam don’t know if you’re looking for input. I came up with a 7.29 cap for the portfolio. Again I am not real familiar with the area, tenant stability and area employment. But 7.3 cap seems that there is not room in the deal for upside profit. It would also be nice to see a proforma and area rental comps. Best of luck

I see what you did. There is a difference between the "purchase price" of 340k and the loan amount of 272k. 

Your Cap rate calculation uses the higher purchase price.  I'm using the "Net purchase price" of 272k in my calculation which gives me a cap rate of 9.18 at purchase.  Let me explain

I'm using a nothing down strategy to limit my cash required at closing.  There is a 68k credit from the seller in the contract that allows me use the purchase price of 340k for financing purposes(as long as it appraises that high). However, the net purchase price for the seller is 272. That's what I'm paying.  If I can find a 80% loan, this 68k credit essentially gets me into this property with nothing down. 

Now... I'm not sure about the appraisal, and I think I can only find a 75% loan, which means I need a down payment, although not a full 25%.  Hence my ad for a partner.

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