All Forum Posts by: Sam Grooms

Once you have your 10-YR Pro Forma, and your cash flow amounts for each year, you simply use the formula "=IRR(A1:K1)". A1 would be your cash outflow at acquisition, then the nine cells in B1 to J1 would be your first 9 years of cash flow. Cell K1 in this example would be your cash flow in year 10, plus cash received at closing on your exit.

I haven't heard of people buying large multifamily based on the 1% rule. 

Absolutely not. Groups are using the BRRR method on 300+ unit syndicated deals.

Is it in an Opportunity Zone?

14% 10-year IRR. 8% average 10-year COC (excluding capital events).

That's it, really. Obviously you want a 3-4% bump on a 5-year IRR. As for funding, private partners for equity, commercial lenders for debt. We buy C Class value-add properties.

Do you have the claim in writing that the seller had no security deposits?

Both of these should have come up during due diligence. First, the rent amounts should have been caught during your lease audit. Second, anytime a seller claims there's no deposit, you need to confirm that with the tenant before closing. Usually the seller will have the tenants sign a letter saying that there's no security deposit. 

 I don't think that's true. Most properties have non-operating expenses. 

I'd recommend Nearhood Law Offices in Scottsdale. We've used them for property taxes, but they also handle litigation. In fact, they convinced us litigation wasn't the answer on an issue and saved us some money. 

What Chase said. If they're selling the property, you should immediately get a T12 and Rent Roll.

Reach out to Jillian Sidoti at https://www.crowdfundinglawyers.net/about/jillian-sidoti-esq/ and she can walk you through setting up your syndicate.