All Forum Posts by: Nick B.

I sent you a PM 

 Reach out to Kenny Wolfe. He is doing something similar. 

Low rent, barred windows, lots of deferred maintenance. Most likely high crime area. You can fix the property but not the area. The cost of fixing the property would be $15K+ per unit. Maybe higher.  

$380 rent is way too low. Most of your expenses do not depend on rent and annual expenses per unit would be $5000-5500 in most of the country. This means you're losing $1000 per unit per year or $36K/year. No wonder it is offered at $19.4K/unit!

Tenants may pay for utilities (directly or via RUBS) but they don't pay for insurance unless you mean renter's insurance. The owner pays for building fire and hazard insurance as well as liability. 

If your rents are $11K, there is no way your expenses are only $1K a month. How many units are in that complex? What is an average rent?

Your building should apprise for $1M in order for you to refinance $700K out.

To figure out the value you need to know projected income and expenses and market cap rate.

E.g. if the market cap rate is 10% your building need to produce $100K NOI annually for $1M value.

NOI = income - expenses, so for this example you need $200K gross rents and $100K operating expenses.

Your actual numbers will be different, of course.

Form a company (LLC us the usual) and purchase the property in the name of that company.

Don't overcomplicate things.

If your deal is 506(c), it is fine to advertise to accredited investors only.  If it is 506(b), you can only offer it to people with whom you have preexisting relationships. Otherwise you will get in trouble with SEC.

DISCLAIMER: I am not a lawyer and this is not a legal advice.

General & Admin are normal operating expenses. They come above the line thus reducing NOI. Depreciation only affects income tax and is never used to value a property.

Search BP for "syndication" and you will find plenty of reference to what you want to accomplish.