Northern New Jersey Multifamily Units
Hello TCI.
I am a new investor looking at a few mulitifamily properties in Northern New Jersey (6 family and a 12 family). What I've discovered, (he writes sarcastically) is that using my models, I can make "any" property come out cashflow positive contingent on paying the "right" price (which is typically 20% below asking).
These properties have peaked my interest, and if I can get my price, I can make the cash flow work (positive), or via the model, at least make the first year out of pocket a minimal expense (-$1,000).
So my questions are as follows:
How am I to proceed? How do I go about making the purchase? Do I set up my financing first (in which case I could miss the trasaction completely), or do I commit to the deal contingent on financing?
While I have "farmed" the area, and I am comfortable with the towns in which I am looking, and I have done the analyses any help taking these first steps would be greatly appreciated.
I am willing to make mistakes so long as they are not so costly. I am willing to email my model for feedback on improvements.
Thanks,
Dave
[addsig]
You are exactly right, you should secure the property contingent upon financing and see what financial backing you can get. Your financing should also be a secondary opinion of a good or bad deal. If they will gladly lend on it, you obviously have done well.
To everyone who has replied up to this point -- Thank you!
I appreciate your taking the time to answer my questions.
Regards,
Dave