All Forum Posts by: Will Barnard

That's not bad. Now if you put only 25% down and leveraged the balance, your COC would be closer to 20% or more.

Without All the information on this oportunity, it is irresponsible to claim this is a "terrible deal".

Looking at at with only one agenda, cash flow, it is not a good cash flow deal.

Yes. You need to keep all the LLC finances seperate from your personal including insurance to avoid the possibilty of someone's ability to pierce the corporate veil.

?????
I dont think so.

Expect nothing less Josh!

You should post more details on the investment to get more complete responses:
How old are the units?
Any repairs/upgrades necessary?
What are the area demographics?
What has been going on in the values in this particular area?
Your $40k down estimate is also low. Most lenders today want 25% down on quadplexes + closing costs and impounds.You are looking at something closer to $60k down, assuming you are using traditional leveraging.

You will probably here from someone that this is a terrible deal. They will explain that your financials will be this:
$2320 Gross income
$1160 Less operating expenses
$ 910 Less mortgage payment (approx)
-----------------
$ 250 monthly cash flow

It is hard to say, judging from the lack of information, if this deal is a winner or not. You also need to inform us of your exit strategies, goals, and any reserves you may or may not have.

The lender is going to pull their credit and find that they have another home. They may want to pursue them for that.
The second would easily take a short as they are 100% upside down. You could start there, but your equity position for the work is not very compelling.

I'm on board with Jim. There has been too much negative behavior and personal attacks, not just recently, and it has become overwhelming. I certainly hope that something permanant is done about it to prevent further occurances as the majority of people here are interested in giving/receiving positive and beneficial information without a few bad seeds interfering.
I am not sure this has happened yet, but will keep a positive hopefullness that it does.

Commercial PM indusry is quite different from residential as are the tenants. Failure to pay gives you much better recourse with a business rather than an individual tenant.

The key is knowing how to create and negotiate a contract agreement which protects your interests and is financially reasonable.
It is common that a PM company in commercial will take the entire value of the lease and charge a % of it.
Example: 3 year lease at $3,000 monthly gross = $108,000 lease value X PM %.