Posted by Ed Garcia on October 11, 2000 at 20:34:39:
I’m sorry, I did see your post, meant to come back to it, and forgot about it. Jason, I’m sorry to say that you don’t give us enough information about the deal. Yes you’ve told us the high light as far as you’re concerned, and that is the seller agrees to carry back. But other than that, you haven’t given us any information. We don’t even know what state it’s in. I’m going to give you some questions that I ask when doing this kind of a 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?
Jason, once you’ve answered these questions, then, we will have a picture of what you’re dealing with. I realize that you have already answered a few of the questions, but we need more info. Jason, if you really want a fast answer, then call me at (909) 944-0199 and we can talk about this deal on the phone.