All Forum Posts by: Daniel Yoo

I'm doing my due diligence on a 100+ unit apartment that I will be purchasing.

Wanted to ask other BP's who own 100+ apartments. Do you keep a reserve fund/expense account on your books? If so, how much is it, do you keep it at a fixed percent or dollar amount?

Thanks.

How does the fact that the maturity date has passed impact the value and risk of this Note?

Quick tangent- have you created a note on a free and clear property before? The owner owns an apartment, no mortgage, no debt is owed and is wanting to create a note. Thanks.

I see, so at a range of 38-50%, this note is on the high end.

I'm assuming that higher ITV's are riskier than lower ITV's? So this one @ 40% is more risk than you would prefer?

Sorry, but what's an ITV? (something to Value)?

40% is on the high end for sub-performing...what ranges do you look for on non-, sub-, performing notes?

It is a sub-performing note.

Property appraised at $2.5MM.

No other liens.

I don't know the original terms on note.

How would you value this Note Scenario?

This is for a 100 unit apartment complex.

The Original Note Amount was : $2MM

The Approximate Note Balance is: $1.8MM

The Asking Price is: $1MM

Origination Date: 1/1/2005

Maturity Date: 1/1/2010.

How much would you offer for this note? Thanks!

Rich, if you had a home study course, I would buy it in a heartbeat!

Thank you, thank you, your insight is one of the most valuable resources here on BP.

I'll be doing a thorough due diligence (twice) and see what's going on here. Thanks again!

True most units are under $100/month. Although, the property I'm contracted on has units that go for $140-$165 for a larger sized unit.

What I'm looking for is the industry average of net cash flow per unit per month.