Some great advice please - Posted by Cory

Posted by GL - ON on July 13, 2003 at 08:28:14:

If you want to know how to analyse any apartment deal in 2 minutes flat, go to the main board and do an archive search for “GRM” and “CAP RATE”.

Your deal has a GRM of 7 which is a little high for comfort. Positive cash flow usually begins at 6 to 6.5 and below.

You would have to get some comparables and listings and analyse them to see what the typical GRM is for your area.

I would like to see a price of $469,080 or less for that building.

Some great advice please - Posted by Cory

Posted by Cory on July 07, 2003 at 11:34:08:

Hi all,

After all the reading I have read at this website I did my first deal bought a house low sold high profit $35,000.00 owend it a total of four days…NICE…anyways I am looking at a 12 unit apartment building Grossed $78,180.00 last year he wants $550,000.00 for the complex I will have the specs tommorow how does this look so far I no you will need more info I will have it later just curious so put this up.

Thank you for all your help


Re: Some great advice please - Posted by Eric C

Posted by Eric C on July 16, 2003 at 16:32:54:

Hi Cory -

No need to run off to the main board for information on cap rates – they’re discussed here far more often and in greater detail.

Here’s a link to a recent post by Ray Alcorn on the subject:

If you’ll also take a look at Ray’s article on due diligence, I guarantee you won’t be sorry.

Take care,

Eric C