All Forum Posts by: Patrice Penda

@John Casmon @Tom Knox
What about Elyria?
I am looking at a portfolio of multifamily units located near the Midway mall.
Is it a good place to buy/invest, in your opinion?

Thanks.

@Daniel Gonzalez
No worries.  Another time then.

@Alexis Manco
No worries. Another time then.

@Dallas Ouano @Larry S. @Daniel Gonzalez @Patrick Light @Chris Silver @christopher Manco
Just to confirm that I'll be there at 7pm

Thanks Tom. I appreciate

Maybe your description is overly simplified but based on the information provided, I don't see how you make money.
You are paying today for tomorrow's equity.

Hey @Tom Ott
What about Elyria?
I am looking at a portfolio of multifamily units located near the Midway mall.
Is it a good place to buy in your opinion?
Thanks.

Alright, here is my understanding of the situation.

ARV = 3.5M (Let's be conservative)
Development cost = 2M 
Value of the land as it is today (If I got it correctly) = 1.5M of which you will own 40% if you pay 620k for it. 

Just at that stage, I am struggling to see where the value creation is!

Now in terms of how the deals is structured, I am struggling to see how it benefit you.

All of the 620k you'll pay will go to your land owner who bought it 900k and is now completely out of pocket while the land still carries a mortgage for 550K.

I am not sure how this deal makes sense.

Is there more to it?
I am missing the point somewhere?

Increase the rent. is that a possibility?

Hey @Dilthon Ramos
Did she ever had a mortgage on the house?

If so, then surely she has some credit history that could help her get a new mortgage.
No?