Re: Ed or Ray, need HELP with multi-unit funding!!! - Posted by Ed Garcia
Posted by Ed Garcia on March 01, 2000 at 20:58:48:
I’m sorry to say, that when I see a deal like this I have a battery of questions.
(1) You state, The units were 100% full before the present owner bought them. He then fired the
onsite managers and tired to run it himself. I think there is good potential here.
That leads me to believe that the units are now experiencing some delinquency. I would like to
know what it is?
(2) I would like to know what the delinquency for the area is?
(3) I would to know the unit mix?
(4) Have you seen a current rent roll?
(5) Have you verified expenses for the last three years?
(6) Your numbers going in look great, to good, so I need to know the geographic and demographics
of the area. Another words what’s going on in the area ?
(7) I would like to know, if each of the eight buildings are on separate lots, or are they all on one parcel?
(8) I would like to know what kind of existing financing is on the units?
(9) I would like to know if you have approached the seller to do a carry back?
(10) I would like to know what are the cap rates being enjoyed in the area?
Tim, these are just some basic questions to get the ball rolling, to see if the is a deal, and how we can structure it.
Tim, you also state, There is a great upside potential and it will have a positive cash flow at this current price.
Tim, it’s obvious that you’re buying this below market based on replacement cost. But I have no feel
for market rents. As a matter of fact, you don’t even say where this deal is located.
Answer the above questions and then we can go from there. I need more info?
If you would like to contact me at my office I can then ask you some personal questions about you, your credit, and personal financial information. You can reach me at (909) 944-0199.