All Forum Posts by: Nick B.

Never heard of this. 

That said, I saw deals where the loan covered 100% of the purchase price but the buyer had to come up with rehab money. Overall LTC was 70-80%

Plenty of groups. meetup.com is your friend. 

@Charles Seaman, they can charge what they want but I find this fee to be unfair. 

Fees are too greedy. I am ok with acquisition fee and asset management fee as %% of the collected rents. 

However,  in this case they charge asset management as %% of equity. That's not right!

Catch up provision on top of it is way too greedy.

Rent growth is not linear because it's a "value-add" deal. It's something like 22% in year 1, 18% in year 2 and 4% thereafter. Aggressive? Yes. But with the market being as crazy as it is they might make it. 

Yes. All these investments ONLY make sense if NOI grows and grows fast in the first 2-3 years.

Those who buy 3% cap rates hope to raise rents and NOI for the effective cap rate of 4%+. Then sell to a 4% cap rate buyer.

For example, someone is buying at 3% cap rate with debt of 3.1%+LIBOR. They plan to sell in in 5 years at 4% cap rate. NOI is projected to grow 75%+. If their plan works, investors would double their money.

"Multifamily" and "Apartments" are the same things :-)

When it comes to condos, it makes most sense if you can buy the majority of the units to own the HOA. Then you get to set all the rules and by-laws. One particular strategy some people use (once they acquire HOA majority) is to issue a special assessment for repairs with a buyout provision. Something like: pay $10K for repairs or sell your unit for $60K. This will motivate remaining owners to sell so that you become the sole owner of the condo.

It's a history of insurance claims on the property.

Is that Grant Cardone by any chance?