All Forum Posts by: Juan Vargas

I agree with @Kyle Bryant. What you are referring to is a partnership which would not require a PPM. Just create a LLC and structure it according to your negotiations with him.

Keep investing (assuming they're good deals) and be ready to take advantage of the next downturn at a greater level.  

Yes, you need more information. How do you know the taxes are staying the same? Usually they go up a bit. I see your insurance is lower for year 1, do you have an actual quote? Overall, the expenses seem too low. 

What do you believe are your strengths? I think finding a career in property management can really help as it’ll give you a good inside view into the operations and financials of running a property. 

Hi @Robin Shelley, like Michael mentioned don't use the pro forma to underwrite any property. If you are looking at a 400 unit property, you should really have a good understanding of what it takes to analyze it. Underwriting a property is more than just inserting numbers into a spread sheet, there are many additional factors that you should take into account.  

Awesome job @Raj Vachani. Keep it going strong. 

It all depends on your goals. I understand you'd like to pay them off to generate more net profit but why not use the funds from the San Jose property and acquire larger property or two?  Use the power of leverage. 

Great suggestions by everyone. The best I would say is to verify your numbers, keep emotion out of it and offer what works best for you. If they reject the offer, then move on. They may reject you offer now but come back to you later. 

@Tyler Kastelberg what region are you looking to invest in? 

You might want to check out Raleigh, Nashville, Memphis, Tampa, St. Petersburg, Charlotte. 

I’m not sure if you can definitely achieve a 7+ cap but it’s more attainable in these markets although the appreciation may not be as strong. 

Yeah, it’s a little drive but it’ll be good.