All Forum Posts by: Joyce D Raphael

Thank you Charles for your valuable input! 

I will surely re-visit all of my assumptions to make sure my numbers are correct. Relative to the $5200/month for the gross monthly revenue, this is conservative as the sq footage of units are generous and would likely support higher rents.

I am concerned about the about of rehab this 5-unit needs.  Did you purchase your unit for cash and finance the rehab? At what point did you have a solid estimate of the rehab costs?

While you may have started out over budget on your rehab, how did you recover and make you deal successful?

Joyce

I have an Opportunity to purchase 5 unit mult-family property in need of substantial rehab. Currently the property is empty. Comps show ARV of the 5-unit is $607,000. Monthly Revenue potential is $5200/mo. The purchase price is $350K and the rehab is estimated at $150K.

Seeking funding scenarios for up to four partners.  

What are advantages/disadvantages of partners funding the purchase price of $350K with cash, and financing the rehab $150K?

What are Scenarios for payoff and return on investment for partners?  

What is an attractive, reasonable deal for partners, i.e. rate of return on investment; Length of time for payout of capital investment?

I am Interested in what has worked for people who have put together these private deals or what would be incentive for a passive investor?

 I've not put together a deal involving partners before and want to know creative solutions from this active and experienced audience.

THANK YOU!!!