Need a funding partner...
OK, OK...we are getting off the sideline and into the game.
We are looking for a "funding" partner. A POF will be requested, at the appropriate time.
Preferably someone has done "this" before on a project by project basis; will have a signed understanding in place before any real estate contracts are signed or work is done.
Right off of BP, here are negotiable terms to get the conversation started:
- Who is putting up funds and how much are they giving?
- What is the percentage split of funds?
- Who will be actively managing the property?
- What will each partner’s specific responsibilities and expectations be in the day to day care of the property?
- Who will be on title?
- Who will apply for the loan?
- How will expenses be covered?
- How will future capital contributions be dealt with?
- How will any monthly profits be split?
- Exit strategy, predetermined and agreed upon.
- If sold, how will the proceeds be split?
We, Tidaback, LLC look for class A & B properties that can pay for themselves; 50+ units, CAP rate 8% +- 1%, DCSR 1.1-1.4 range, Breakeven range 85% or less and an expense ratio of not greater than 65%.
If we cannot make money on the front end and have the portfolio pay for itself monthly we do not pursue. We do not get emotionally involved, we are a strictly numbers business.
What we offer is due diligence, management experience, budget expertise and honesty for a long-term relationship.
If this interests you, please contact me.