Posted by Ed Garcia on January 28, 2001 at 23:26:18:
Why don’t you help us out by telling us what state you’re in?
You also tell us that both sellers are motivated, what does that mean?
Does that mean, that they’ll carry back 50%, 40%, 30%, etc.
What’s your story? Do you have some down, no down, good credit, bad credit?
Hnieves, you’re fishing and not using any bait. You tell us that you will give us the pertinent information if we’re interested, but you don’t give us a reason to be interested. As a matter of fact, the way you’ve presented it, you are already a problem child because you have no down and are showing you don’t even have the experience to make a proper presentation.
Hnieves, there are 19 basic questions I ask myself when doing a commercial deal, just to get a feel for the deal. I’m going to give them to you to see if you have a feel for your deal. Also you’ll need to show me how you’ve penciled out your deal, ( meaning, how you formally analyzed the two different properties) to establish value, and your purchasing price.
We need more information before we can go any further with your deal.
(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.