I'll try it here - Posted by Tracey

Posted by Ed Gsrcia on January 10, 2001 at 22:55:37:


I’m sorry, but we need more info. Here are some basic questions I ask when working on units.

Questions to ask for commercial

(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

Ed Garcia

I’ll try it here - Posted by Tracey

Posted by Tracey on January 10, 2001 at 13:31:43:

I need help evaluating this deal from you experienced RE Investors. I am looking at a 4-flat in the Chicago area that has a gross income of $52,000 and is listed for $624K, that’s what it has appraised for. The owners are looking for a quick sale and told me that they would need at least 565K otherwise they are going to sell to a developer who has offered them the 565K. They really don’t want to sell to the developer though. The building is in great shape and has separate utilities throughout and appliances in every unit. The outside could use some work, maybe some new siding to spruce it up a little bit. I think that I can sell this property fairly easy, especially if I could put some new siding on it, the upside could be as much as $50,000 or more after I sell. Assuming I could get the building for 565K, I am wondering if you all think it would be worth it at a 90% LTV and if I could find financing for it very easily? Any help would be appreciated.