Example of analyzing transaction acquisition of owner-funded portfolio

Offering an interesting deal

Example of analyzing transaction acquisition of owner-funded portfolio

 

** crowd wisdom **

I have an offer for an interesting deal. Acquisition of 8 properties in the BC area. Market value includes about $ 440,000. The offer is to purchase the entire portfolio financed by owners - total portfolio price $ 385,000, 25% DP, interest 7%. The monthly payments are interest only and the loan lasts for 3 years.

The bottom line is the numbers:
Initial payment - approximately $ 105,000 including closing costs
Monthly interest repayment (monthly financing expenses) - $ 1,680
Rental income - $ 1,900 (after calculating management costs, repairs, etc.)
Potential return - about 21%

Some of the properties have rental potential.
The idea is to rent all the assets in the Lease option for two years and what I will not succeed then to put out for sale after two years.

These numbers are already after negotiations so there is not much point in offering me to lower interest rate or DP or something in style (unless it is a flashing 🙂)

what do you think?
What to watch out for? What to consider?

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  • Very interesting my friends .. Send me the addresses ..
  • Just understand, the properties are rented a few months per month for 1900 after expenses? 500?
  • interesting. Send addresses and look deeper. What I did not understand was how 21 calculates a return if revenue minus financing expenses reaches 5%.
  • 1. Popular to do in these area Lis Opshin?
    2. The areas with an expectation of appreciation?
    Then Ripiens makes better money from the bank
    Gets from 70% bank back (it's 308K by 440K cap)
    Returns to the owner the money and stays with a little extra in hand
  • Good Morning
    Missing some details. What gross monthly rent?
  • Just wish good luck with the deal !!?
  • Good luck Champion!
    I was looking at refinancing later on
  • Danny Trestian
  • It's not so clear how you got to 21%.
    What is the gross income of all rentals? Taking into account the expenses of the property tax, insurance, vacancy etc.?
  • It is difficult to relate without receiving location / address of assets.
    48k asset can be bingo and can be opened to trouble. It all depends on the correct valuation of assets.
    About the Rippy. You will find an American partner who will take the loan for you (at a significantly lower interest rate than 7%), repay the loan and share the profits / yield.
  • In advances of more than 1 percent it is usually customary to demand the deed that you will go through… Note that this is not a land contract that will not allow you to make a refinance and will leave you exposed to the owner's perforation. 20 percent interest when the monthly payment consists only of them it is relatively much. What about increasing the down payment at the expense of interest? Good insurance and a good management company that specializes in these areas. Try to lower costs because you have a portfolio.2. Recommends placing a dummy ad to test the feasibility of Lis Opsin in this area.7. Note that the rents are realistic and what the vacancy rates in these areas actually are.
  • Idan Shkedy Are you ready to share which area / city…
    There is much to be taken care of by C
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Responses

  1. 1. In advances of more than 20 percent it is usually customary to demand the deed that you will go through… Note that this is not a land contract that will not allow you to make a refinance and will leave you exposed to the owner's portfolio.

    2. 7 percent interest when the monthly payment consists only of them is much relative. What about increasing the down payment on interest expense?

    3. Good insurance and a good management company that specializes in these areas. Try to lower costs because you have a portfolio.

    4. I recommend putting a dummy ad to test the feasibility of Liss Offshin in this area.

    5. Note that the rentals are real and the vacancy percentages in these areas are actual.

  2. It is difficult to relate without receiving location / address of assets.
    48k asset can be bingo and can be opened to trouble. It all depends on the correct valuation of assets.
    About the Rippy. You will find an American partner who will take the loan for you (at a significantly lower interest rate than 7%), repay the loan and share the profits / yield.

  3. 1. Popular to do in these area Lis Opshin?
    2. Areas with an increase in value?

    I would buy
    Then Ripiens makes better money from the bank
    Gets from 70% bank back (it's 308K by 440K cap)
    Returns to the owner the money and stays with a little extra in hand

  4. 1. Popular to do in these area Lis Opshin?
    2. Areas with an increase in value?

    I would buy
    Then Ripiens makes better money from the bank
    Gets from 70% bank back (it's 308K by 440K cap)
    Returns to the owner the money and stays with a little extra in hand