Posted by patrick spier on July 11, 2003 at 13:54:22:
I have a realtor working with me now and this is what I have so far
he owes 280,000 on existing loan
his noi is 7,000
he will consider a 2nd depending on terms
he is 20,000 behind on taxas
the bexar county appr dist (www.bcad.org) is going for around 650,000
I was thinking maybe he might take a partial payment maybe 60 to 65% ltv and 5 yrs later the rest of whatever my offer comes to have not made an offer yet still collecting info.
but I am leaning towards around 616,000
email me if you think this might be a doable deal and what we are facing now is my fico score is just under 500 but my partner is high 600s looking at his fico now and trying to raise it to 700
call me if you think there is a chance here thanks
cell… 832-643-3763
home …281-516-3890
I have this 28 unit in Texas I am looking at, looks real good on paper a 144000 gross income and a low operating income but this is my 1st multi unit I have done flippers mostly any tips in this matter folks would be great.
my bank that I worked with only does rehab loans and not for multi units and the seller of this complex is a owner/agent the asking price is 775,000
thanks from Texas
When doing multiple units, there is a little ritual I go through. I as myself 18 questions which is helpful for me to decide if I have a deal and how to structure it. I will share the 18 questions with you and after you answer them, bring them back to this forum and we will try to help you.
(1) Describe The Units and the surrounding area?
(2) How old are the units?
(3) What’s the unit mix ( how many 1 br. 2 br etc)
(4) What’s the vacancy factor in the area?
(5) What is the gross income of the units?
(6) What is the vacancy of the units?
(7) What is the NOI?
(8) What are market rents in the area?
(9) Are there any other Units in the area for sale?
(10) If so at what Price?
(11) What are the going Cap rates in the area on multiple units?
(12) Have any other Units in the area recently sold?
(13) If so at what price?
(14) How much does the seller owe on the units?
(15) If there is a loan, is it assumable?
(16) Will the seller carry a second?
(17) Is there any differed maintenance?
(18) If so, estimated cost of maintenance?
(19) How’s your credit?
If you answer these questions, then I can answer yours, with a meaningful answer.
Otherwise, it’s just, What ifs? or hypothetical.