Posted by Bob Smith on July 15, 2008 at 22:12:17:
Those parameters are intended to (a) get best loan terms, (b) recycle
all my cash out the back end since it’s a net zero-cash deal once the
property is fully leased and stabilized, and (c) allow 15-year financing
with a DSCR cushion (~1.4).
By “repeat” I do mean “find more properties a year”. There wouldn’t be
much point looking for it if everybody who responds says “you can do
that deal, once a decade!”
Is this realistic and repeatable? - Posted by Bob Smith
Posted by Bob Smith on July 13, 2008 at 14:19:45:
Acquire a neighborhood strip or small office building at an all-in cost
(acquisition, renovation, negative cash flow, commissions) of 65% of the
projected fully-leased value, then hold long-term with a 65% LTV (best terms)
cash-out refi. Repeat another 2-3 times a year.
Re: Is this realistic and repeatable? - Posted by DB
Posted by DB on July 15, 2008 at 12:33:16:
Sure, it’s possible, but why those specific parameters? Just look for deals that make sense and you’ll find the money. I’m assuming by ‘repeat 2-3 times a year’ you mean find 2-3 more properties a year. It’s kind of an odd question…
Re: Is this realistic and repeatable? - Posted by brandoncbsre
Posted by brandoncbsre on July 15, 2008 at 05:45:23:
Depends on the market you are in and your ability to find deals and get financing. Anything is possible.