All Forum Posts by: Karl Sivert Skatland

Thank you so much for your responses - exactly what I was looking for! I`ll try to update the worksheet according to your corrections.

Calculating the principal is not the problem (as you can see from the worksheet). My question is how do I address the positive impact paying the principal has. I know it can`t be counted as income, as it does not affect the cash flow. But how do I account for the decreasing total mortgage?

I am trying to create an investment worksheet that will give me a quick overview of a potential property investment. My question is how do I account for the principal paid on the mortgage? The worksheet is attached in the link below - any feedback is appreciated.

https://www.dropbox.com/s/urz8bgzjpj5krvl/Investeringskalkulator.xls?dl=0

It is not a crowdfunding site - but a Norwegian company in collaboration with an American developer (SunPark Developers). I am offered stocks in the Norwegian company, whose whole purpose is this deal. I am secure with the Norwegian company being professional - I am just not familiar with the american developer (or the area for that sake).

Hello everyone!

I recently have gotten the opportunity to invest in a development project in Championsgate Florida. As I really do not know the area I am looking to my fellow biggerpockets friends to help me evaluate the deal.

The project is called Champions Vue Apartments and is located close to the Omni Orlando Resort in Championsgate. It is a 15 building, 326 apartment project - and the strategy is to build, lease the properties and sell it to an institutional investor once the buildings are fully leased (5% vacancy).

The whole process is estimated to take three to four years from building starts until entire property is sold.

SunPark Developers are the developers, and also the ones guaranteeing for the mortgage (80 % of the entire building costs). The contractor is Robert B. Kennedy INC, and the rental management company is Lincoln Property Company (they are also the ones providing the numbers for expected rental income).

The estimated costs are 44,5 MILL USD, where 20 % is investment money and 80 % is financed by mortgage with a 6,5 % interest rate.

Once build and rented they are budgeting with a total income of 4,989,000 USD - and a total expense of 1,830,000 USD. This gives a positive cash flow of 450,000 USD after mortgage and all expenses is paid.

The monthly rental price per sqft. is 1,3 USD. They are expecting a yield of 5,5 % once sold.

The customer target is residents working in the surrounding area. I have the entire financial prospectus, but firstly I wanted som initial feedback if anyone knows the area or have done similar deals.

The developers are expecting a healthy 18% IRR.