All Forum Posts by: Account Closed

Hi Simmy, this is a wholesale deal. This is a good buy and hold property, there are virtually no properties of this size on the market.

This purchase consists of a 40 unit multi-family property for $2,880,000 with $50,000 cash to buyer at closing. The unit mix is all 1-bedroom units. Market value for these buildings is approximately $3,200,000, so this purchase will yield instant equity of at least $370,000. This valuation is based on the 2 most recent sales in the surrounding DuPage County. With a purchase price of $2,830,000, you will be purchasing this property for $9,250/unit under market value. With a 25% downpayment, the cap rate is close to 9% and has a cash on return of 14.72%.

This C-Class property is located in a quiet and clean C-Class neighborhood close to businesses and single family homes. The property is in excellent shape; the property has little to no deferred maintenance and plenty of recent upgrades such as new flat roof, new windows, new built-in air conditioning units in the living room and new flooring. The units are all electric, therefore there are no gas or heating bills. There is an on-site property manager that lives in one of the units and collects rents and makes repairs.

These buildings have been well maintained, therefore there will be lower maintenance costs than similarly graded investments due to the recent renovations. This is a well performing and very stable property collecting market rents.

West Chicago which is located in DuPage County has a population of approximately 27,500 since 2014 according to city-data.com. The median household income is $70,000 with 31% of the population being renters. West Chicago boasts a strong rental market with median gross rents in 2015 being $1,100.

Please email to request income and expense information.

As a former Residential and Commercial Loan Officer I suggest going to www.Scotsmanguide.com and go to the lender search page. Choose either residential or commercial. There will be parameters that you can select in regards to the loan size, property type, location(state), etc. There will be a list of lenders displayed on the page and you can research these lenders. Check the BBB(not always reliable) and attorney general's office in that state. I strongly recommend using direct lenders only and stay away from brokers. Only utilize mortgage brokers that you personally know and trust, meaning you know they are reputable; they have actually closed deals in the past. Also be very careful if you are looking for commercial loans. I cannot stress this enough. Residential lenders are bound by lending laws such as RESPA, Truth-In-Lending and others that require the borrower to receive the loan terms in writing including an estimate of all fees charged. There are no requirements like these in commercial lending so loan terms and fees will vary in commercial. Lastly, never, ever give upfront money for a loan application unless you don't mind kissing that money goodbye. Also when applying for a loan, it's recommended that you apply with 3 different lenders and then you will be able to select the lender with the best terms.