Commercial Deal

i am buying a large condo conversion 440 units $112M I have a choice of having seller given me $20M on the backend by taking a equity partnership and receiving a 100% finanancing or putting $down 15% and getting a loan at 85% cltv and i can have $5M on the backend. My question no matter what way I go 100% financing it goes $7M in the whole at 85% goes around $4M in the whole per year. I plan on renting the units outs and planned at a 90% occupancy. Could you make enough money with $20M to make a income of $7M dollars a year with it Or $5M trying to make $3M. I did the due diligence property management the works. I am probably going to have to have the seller reduce price.

Comments(5)

  • rglover5484th June, 2007

    kelvin REI. Off topic

    I may be going to West Los Angeles later this year. I may be there for a year or 2. I looked at craigslist and saw 1 bds for $900-$1000. Is that a normal rent? Because i saw a large variation in rents on the website

    From the looks of the Los Angeles market, buying something looks out of the question.

    Also, is there a big difference between Glendale, Inglewood,Burbank and the other nearby areas. Im not concerned with schools and other family stuff. Just crime i guess. Thanks in advance

  • sanjosee5th June, 2007

    Sorry If I am butting in but I live in LA & can tell you the is a huge difference between Inglewood & the other 2 areas you mentioned.

    Good Luck with your search



    Quote:
    On 2007-06-04 19:33, rglover548 wrote:
    kelvin REI. Off topic

    I may be going to West Los Angeles later this year. I may be there for a year or 2. I looked at craigslist and saw 1 bds for $900-$1000. Is that a normal rent? Because i saw a large variation in rents on the website

    From the looks of the Los Angeles market, buying something looks out of the question.

    Also, is there a big difference between Glendale, Inglewood,Burbank and the other nearby areas. Im not concerned with schools and other family stuff. Just crime i guess. Thanks in advance

  • kelvin_REI6th June, 2007

    [ Edited by kelvin_REI on Date 06/06/2007 ]

  • KOOLACK9th July, 2007

    THE LATEST IS I LET IT GO, $19 M ON THE BACKEND WOULD HAVE BEEN NICE IMAGINE THE BUYING POWER BUT I WOULD HAVE BEEN BROKE IN A FEW YEARS. MOVING ONTO ANOTHERE COMPLEX A REHABBER.

  • kevnhl2510th July, 2007

    try the local tax assessors office in mass its public record
    they will have books that have all the info for current fiscal year.

    as for back taxes they may tell you that or they may charge you for that info ask for a municipal lien certificate

    good luck.

    Kevin

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