All Forum Posts by: Diogo Marques

Send the property to a property manager and get their input. If they are on your side, they'll give you a ball park estimate. Don't go in fudging the numbers

No. Assume nothing. It starts with what the last guy did. Send the property to the property manager and ask what they think. Pick up from there

@Arun Iyengar I am not a broker. The 1% of the sale is standard when you sell the property. You have all the work. As an entrepreneur you gather people, analyze the deal on exit, and have to pay the brokers and the sale expenses. That takes a chunk of your time. It is standard.

Arun Iyengar 1-5% finders fee, 1.5-2% AUM fee, 30/70 equity split after preferred return, 1% of sale

Brooks Foster Another one because:" i like big chunks of coffee and i can not lie" :-) You have to figure out what people need and not so much competing. Talk with local people to get a sense if there is a retail shop that can provide something they need. It could be a supermarket(a big one) or it could be clothing. Guessing won't work. The Marketplace(aka local people) must tell you. Ask them without an agenda so you don't skew the conversation. Listen. After 10 people telling you more or less the same thing you can build your case from there. It is always about being useful to people and providing them what they want at a price they can afford and keep coming back.

Patrick Philip Start backwards from the sale price: 1/How much do you think you can sell the property for. Look at renovated comps. 2/How much the market updated rents must be at x num of units = Revenue 3/Performing assets should not have higher total operating expenses than 55% 4/You have your NOI 5/take 10% of NOI for Capex to arrive at your Adjusted NOI 6/Calculate Sell Cap Rate 7/Going-In Cap Rate should be at least 50 basis points below sale price. If you can get lower, Sweeeeeet! Ideally you would enter with a margin of safety of 30% below asking price. Margin of Safety is you figuring out how much it is worth and pay a lot less.

@Paul Branton We are looking for c->b mfamily 50+ units in KC and OH.

Currently have 1 51 unt about to go under contract

Paul Branton I am actually. We invest in Kansas and Ohio. A good referral is always useful

@Bruce Petersen can you clarify what do you mean by 10% of the overall deal?

@Kyle Bryant It is all about what value each of the team members bring.  If you happen to have a deal that needs $7M and the syndicator brings in a large chink of the equity, something in between the 50-60% sounds appropriate.

The syndicator could also invest alongside the LP.