All Forum Posts by: Dee Xixi

Hey Dion,
My thoughts were, the current owner transfer the property into a llc and give me an equitable title. Which would make me part owner. Pay him his equity upfront then wait six months to refi the note on the property. In my state MA, I ask few local investors, no one can get me a clear yes or no answer with out refereing to DOS. if you have experience on doing this type of transaction maybe I can PM you and you can walk me thru the process.
Thanks

I have a burn out landlord that want to sell a 7 units in my area. lRight before the market crash he put up some serious money into the building for a complete rehab. He wants to sell the property for a reasonable price which will still cash flow positively and cap rate at 9% for the area is not an awesome deal by no mean.
I offer to take the property with existing financing but I am wandering what is the best way to transfer to an llc or trust and at the end i can refi instead than purchase?

Please help out.

I am looking for a green apartment deal analyzer. if anyone have an excel pro form feel to share or any recommendation on available softwares.

Thanks

The property in question is in Good condition. New roof( 18 months old), new appliances( less than a year old), new electrical, windows, kitchen and so on. he is a burn out landlord, 70 years.

Here is the number:

offer to pay: 200k
rent income: $3450 monthly
Down payment: 20K
Insurance: $2550
Tax: $3930

Hi All,
I am buying a 6 units with owner financing. I suggested to the seller that I am putting 10% down with 5% interest on a amortized of 25 yrs. Ballon payment 7 years. He likes everything but the downpayment. He affraid that I can trash and walk away from his property. I am thinking to get a life insurance polic and make him the beneficary of it.
Have anyone done that? what is the in and out of that. Or any other suggestion

The seller absolutly doesnt want to go for the deed idea. She prefers the option idea, as a safer way to avoid the DOS clause.

Here is the proposition: Is this a good deal????

Selling price: 330k
I pay: 10k non refundanble upfront toward credit at closing
Estimate repair: 55k
Pick option time: 30 months
ARV: in a range of 435-450K. Depends of the market in 2 years.
closing cost:6%

I take on everything have to do with the house.
PITI = $2089 a month
Owner Lease option: $356.78 a month.
Rent = unit 1: 1200 and unit 2= 1500 = 2700.

Please help me decide if I should settle for the lease or keep fighting for the deed or just walk away.
Exit streategy to keep for myself if I could but a sale is not out of the question.

This is my first wrap around, I am puzzling everything to present to the seller. Anyone with experience walk me to the process and hoow to refinace please.

Thanks

is there any way what so ever to refinance a home in a land trust, even using a local bank instead than a big bank? A buyer offer me a property via a wrap around but I am thinking about exist strategy before moving forward with the transaction, if i cant refinance in a land trust that my idea to control the property via a land trust wont do us any goods. any suggestion?

Thanks

Hi Folks,

There is this 96 units property going to auction. As I am preparing a financial summary for a 25/75 split equity. 25%---me and the equity partner 75%.

Here is the number

23 studios x 800 = 18,400 ....... low end rent (800-875)
40 One Bedroom x 1125 = 45,000..... Low end rent (1125-1175)
33 Two Bedroom x $1225.00 = 40,425...... Low end rent (1225-1300)

Monthly Income: 103,825
Yearly: 1,245,900
Other income (laundry): 5,000 (very conservative)

AGI: 1,250,900

Figuring out Acquisition Price

Expense analysis @ (50% rules) = 625,450

Net Revenue: 1,250,900 - 625,450 = 625,450 (subtract the 50% operating expenses from the gross revenue to solve for the net operating income (NOI).

Cap Rate = (NOI / Purchase Price)

Purchase Price = (Net Operating Income) / (Cap Rate = 10%)

625,450 /10% = 6,254, 500

@ Cap Rate = 7%

8,935,000



Offer price:

Factoring acquisition @ (10% cap rate incl ( Rehab + 3% acquisition cost)) = 450,000 + 187,635 = 637,635

6,254,500 - 637,635 = 5,616,865

@ 7%

8,935,000 - 718,050 = 8,216,950

I am thinking at the auction 6.5- 6.8 mil probably the highest I should bid. Any feedbacks.

Exist strategy:

Refinance property in 5 years with Government back loan to payoff equity investor.

Sale home for a profit in 5 years based on a Net Operating Income with Cap Rate of 7-10%. should have enough money to pay investor.

Does anyone have a good investment pro forma? please

Thanks to Jon & Will. Great advice.