All Forum Posts by: Jonathan Johnson

@Todd Magin Thanks, that actually seems like something I was getting into. I suppose the actual documents and responsibilities are always case specific so that's where the attorney would come in handy. 

I imagine though that I would need to iron out all those responsibilities and distributions specifically.

@Jeff Chapz For shortness of post, I didn't include the analysis, so the question seems uneducated. Assume I have step 1 done, now I'm asking to get education on step 2.

There are a lot of ideas but they aren't very specific, it's mostly general ideas like, "I asked my mom if she would want to put down the downpayment..." But my question is a little more specific: how do I do that? How do I calculate the payments?

I just talked to my portfolio manager at the bank and he said any others involved in the downpayment would just be signed in on the loan as coming in second if I default. So there's paperwork there I guess.

Anyone here have experience doing this?

Hello BP,

If I find a good deal on a large apartment complex, but don't have the money for the downpayment ($500-700k), what kind of product or offer can I structure to talk about with friends and family who might want to invest their money with better returns than saving/stock/ira?

And as far as calculating that in excel, how would I analyze what I can afford to payback if it's different time tables than a commercial loan? For example, I know how to calc the 20-year commercial loan, but then if I add investors is it a regular interest rate plus principle or simple interest?

I could probably just make up a plan, but I'm not sure how to explain it to friends and family that wouldn't sound complicated. I want them to be interested in the rate and return and also know that I'm going to be able to afford it. The deal I'm analyzing seems pretty healthy.

My next step is ask for a balance sheet to see what assets they have that might explain the depreciation. Also, salaries being $150,000 seems really high for a 100-unit apt. Is that normal?

@Chris Tracy Sure, message me the details.

I'm looking at a 100+ unit apartment. It has a lot of vacancies, about a third, which affects the numbers of income/expenses.

I'm mostly learning how to analyze this since it's over my budget, so don't stress out over me buying this. But I love crunching numbers. I asked the realtor for the financials for the building and what i got was really interesting. What do you guys make of these "office expenses"?

What are good cap rates for the area? ( Net Operating Income / Purchase Price )

What are rental properties renting for (in $/sqft)

What neighborhoods should I stick away from or look into?

The book on Estimating rehab costs will be your best bet for that. 

https://www.biggerpockets.com/store

Other than that, here's a ballpark infographic for ya.

http://www.homeadvisor.com/r/true-cost-of-home-imp...

Personally, all the financial ratios, calculations, payments, and expenses are hard to organize and understand. Obviously those are the heart and soul of real estate investing.