All Forum Posts by: Alex Olson

@Nik S. Yes some banks are very strict. You could actually switch to a more favorable bank depending on what the issue with the property is and where it is located to get more of a favorable use of the funds. But, if it is of paramount importance, a bank may require items to be fixed prior to closing.

@Tony Sepassi The only thing I would consider is appreciation. Is it going to appreciate at 10% a year? Are rents going up a lot? Are they under rented? Cap rate and current cash flow is only part of the deal. If you do your own underwriting, I am sure you know this, but I would input market rents vs actual to see if there is any upside. And, look at appreciation rates. I know I am late to this but hope it helps. 

@Benjamin Garner I would find a brokerage that specializes in multifamily acquisitions. Not sure what are you are in but ask around here on the forum specific to that location. This person, if they have acquired property themselves, should be ale to help you out so you appear credible and motivated to buy...which is what a seller needs to see. I know this sounds simple and basic - and that you may want to go it alone, doing it once with a good agent will accelerate your knowledge. Take the plunge!

@Larry Turner Rent Roll, P and L, utility bills, leases, property management, inspection, crime in the area, taxes, tax paid receipts, capital expenditures in last 2 years (appliances, roof, etc...).

@Michael Lawrence main things are p and l for last 12 months. It should come from a software of some sort for this size property. Also ask for a current rent roll. I would ask them for what taxes were on the property and then verify via county website. If it's on market find a good multifamily real estate agent or brokerage. Once under contract get copies of signed leases among other things.

@Jennifer Stradtman 3-5 years if it goes pretty smoothly. I would recommend finding a gp and you be the lp so you can learn how they do it. Taking the risk and not having done it before puts you in a bad spot if the economy turns. Hope this helps!

@Michael Malter I would suggest getting with a local bank that allows you to refinance on a short term basis. Or refinance with your hard money guys. You need to be faster with stabilization and find an agressive bank that understands you need a real appraisal based on income.

@Rob Mudd keep it going man! Stick to your numbers and go slow and steady.

@Alex Olson remove *almtan's. And, should be *through. Autocorrect stinks.

@Ryan S. In my experience, this is just a Seller credit back to the buyer at closing. It is handled though title company and documented in Altman's amendments. Then the commission is based on either net sale price or gross sales price.