All Forum Posts by: Anthony B.

I found a 22 unit apartment casflowing about $291 on actual numbers from the past 12 months. Its about 1m. Here is your scenario: you work a deal where you find a lender doing 75% First, and Seller carrying a 20% 2nd. You need to find 5%. You find a private investor willing to put down the $50,000 grand needed.

What terms would you seek to get with the investor putting the 50g's down? Length, Interest Rate, Etc. Would you do a JV, or just secure the note to the property and have your LLC as the soul owner?

Thank you

I have a question to give myself clarity:

I want to buy a 350k apartment complex. I don't have my business line of credit yet. Property already has good cash flow.

If the seller agrees to a carry back 50k, how does this affect my ability to acquire a commercial loan? Is this viewed as a 'down payment'? I'm assuming its also viewed by the bank as a property at 100% CLTV.

I've heard of similiar situations. Regarding selling one rental to pay down half of the house in florida, some people would say its throwing money into the already bad investment.

I dont know what the situation is, but maybe try lease optioning the house out? You aren't going to have that many buyers right now with the market due to credit crunches, and lease optioning your house might work.

Makes a lot more sense.

Interesting he defaults on a 160k mortgage on a 490k house, and resorts to needing a life boat. Definitely do more due diligence and find out why/how he got into this situation, I'm curious :)

Hi Kelsey,

I'm extremely confused here.

The current value of the property is 490k? What is the ARV?

Where does the 207k working capital coming from?

If rehab cost is 35k, then say only 20k of it is spent, and 15k is pocketed. So in reality rehab cost is 20k?

Why is the seller getting paid 89k? By the term seller, you're saying the home owner going through foreclosure?

Basically you are giving this man a chance from losing his home, with the intention of buying it back at 367k (75%) + 49k (10% of house value?) Not sure what you mean by 75% + 10%. Isn't that just 85%?

The way I see it:

490K Est value
(367k) Acquisition Cost
(20k) Rehab expense
(24k) Mortgage for 1 year
(15k) Broker Expensee
-------
64k Leftover

Leftover from that is 64k, plus any forced appreciation from the rehab.
Then you are agreeing to sell the property back to the homeowner for 75% + 10%. If that is true you, homeowner buys back at 417K, and you invested 426k.

I doubt I interpreted everything correctly so if you could be a little more clear. Either I'm missing something completely, or this deal doesn't make sense. Would it better to just find a fixer, complete the job in less than 3 months time (hopefully) and sell it retail? Holding for a year doesn't sound too appetizing.

Also we haven't hit the peak in the blood spilling from the mortgage crisis. I wouldn't be so confident by saying So Cal RE won't drop in prices within a years time. Especially considering we still have a good group of mortgages set to adjust.

I use my aero sidebar that shows me how our dollar is depreciating every damn day. I'm going to start moving extra money I don't need into Euros on my paypal account and start looking into Euro CDs. Anyone else out there watching our dollar? And what are you doing, if anything?[/i]

I just put one up tonight at a nice and busy off ramp from a high way. Should get a lot of views since it is on a stop light.

Funny part is that as I walked to the light pole, a car came pulling up to the light. Literally before he stopped he had his window out with money in his hand, thinking I was begging. This only tells me one thing: I'm a money magnet! :D

Is there a grace period for how long a Confidentiality Agreement lasts for? Is it normal for the absence of an expiration date?

I'm wondering because I'm about to sign one, and on the agreement there is no expiration date.

One example is that it says I cannot talk to the third party without consent of this person. What if three years down the road I want to talk to third party, but this CA contract is still in effect?

Why has it not sold at 325k?
What is wrong with the house?
What are the comparables for the property in the rehabbed condition?
Are you going to be the one evicting the current tenant?

The main thing I am unclear of is the fact it is 'Government Subsidized'.
Is this an advantage or disadvantage?

1,000,000 Asking Price
22 Units - Each Unit @ $789 Monthly Rent

$17,358 Gross Monthly Rent
($8,679) Less 50% Expenses
$8,679 Operating income

$1,000,000 - 30 Year Note @ 8% = $7,337 Monthly Mortgage

$8,679
($7,337)
=$1,342 Monthly Cash Flow ($61 a unit)

So I did these numbers assuming no down payment, paying asking price, and on an 8% loan. Honestly...It looks good to me. Any adjustment, i.e. lower offer price, down payment, makes the numbers even better.