Posted by Kevin C. (OH) on February 06, 2001 at 21:33:11:
Ed,
By the way, the property now is value at 100K from the county auditor’s page.
Ed, Need help on financing this sweet deal - Posted by Kevin C (OH)
Posted by Kevin C (OH) on February 06, 2001 at 21:27:50:
Ed,
Thank you for your support on this site. After I have talk to you, I feel excited every night. Recently, I have saw a pretty sweet deal, maybe I could get into.
It is a rehab loan. It’s very close to 2 major hospital and fairly close to an major university. The owner bought the property for 20K and would like to sell it for 59K and willing to negotiate. I am willing to offer max of 40K (the seller is really eager to get out). It’s a 6 unit (3 bedroom each) apartment complex. According to him there is approximate 60K needed of work needed for the apartment for it to be reappriasal to 189K.
Rent wise the area normally renting around $600 to $800 per month for a 3 unit. According to the seller, the unit is potential of bring home about 40K annually, which is less than my estimate. (about 555 for 3 bedroom unit). With the 75% vacancy rate (30K per yr for rent), it’s GRM (to the appraise value) is 6.3 times.
Currently, I believe I have 625 to 635 credit rating. I really do not want to pass out the deal. Is there any program I could get qualify?
Thanks in advance,
Kevin C. (OH)
Re: Ed, Need help on financing this sweet deal - Posted by Ed Garcia
Posted by Ed Garcia on February 07, 2001 at 24:18:12:
Kevin,
Your numbers look good. I’m concerned where you’re going to get the $40,000 fix up money. I need more information from you about your plans and intentions. I understand what you say you want to do, but I want to know your detailed game plan to do it.
Kevin, as always, when I see a deal on the board, a bunch of questions come to mind. I need personal information about you as well as the following questions to be answered.
(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?
Ed Garcia