Jeff Pasquino
Footballguy
11.47% is correct.Expenses = $17,672.Othis.
I am pulling a CAP rate of 11.47 off of the 112 Park Place property WITH Management included and it's a Brick Building.
I would sure want solid proof that 1/1's are renting all day long in Alburn NY, but it seems solid if you trust the numbers they give you. Get copies of leases PRIOR to your bid.
Seriously, the Owner will most likely balk at that, but honestly, it because he is a complete lying punk, and the numbers don't jive.
From what I would guess about Upstate NY, these numbers don't jive/something is wrong/someone is Lying. Something doesn't fit. It has those performance numbers where a PM is already included in a Market like NY????
Honestly? I will tell you what Mike Anderson would do here. I have been an Investor for over 10 years, and a Full time investor for 3 years. I specialize in Cash Deals where either I pay Cash, or if I HAVE to Finance, I get cash at Closing, my best is walking away from the table with $21K.
I would float Bass $100.00 as someone I trust and ask him as a PM to dissect this with a fine tooth comb. To be my "Expert"/Representative/trusted FBG to try and understand this deal. I would Hire Bass, and Expect to just forfeit $100.00 to understand this inside and out. For that $100.00 I want serious insight into this entire operation. I would think given Bass's profession, he would gladly accept a C-Note to research another market he might be able to operate in. Money well spent all around, but I would want Bass to get Medieval on this website/concept of what these properties are worth.
It's out of my market, SEEMS awesome, but I would check it out like there is no tomorrow. Assume something is wrong.
Jeff is stronger than I am at this, but that is the way I would approach it.
I did the following once before, but we are further along in the thread, and I want to clearly state the following:
Since I am on staff at FBG, and a Licensed Real Estate Agent in, the Mecca of all Civilization, Indiana, I want to clearly state that I have no affiliation with Bass, in fact I seriously don't know his first name. Do I trust him on this subject? ABSOLUTELY, but it is Mike Anderson, Everyday citizen that trusts him. Any representation I make is that of Mike Anderson, and in no way shape and form of/for FBG.
Rents (Income) = $63,420
NOI = $63,420-$17,642 = $45,748
CAP = $45,748/$399,000 = 11.47%
Something I see - management cost is VERY low. Also no maintenance or vacancy factors in the budget.