Re: Equity Merchants
In accessing this excellent TCI site, one of their advertisers is a LV company, "Equity Merchants". Their website has any number of instant equity, money back / no money down deals, etc., etc. The question is: "Has anyone dealt with them and what is your opinion and experience in dealing with them"? Thanks for any feedback anyone cares to offer.Equity Merchanrs
Thanks for your reply woodsong.
Yes, the 40% expenses includes all those pesky little expenses. I did see their actual expense statement and they show a 31% expenses (without management & reserves). Sisnce this is a newer property, I take it that expenses may be a lil low.
Am not sure if you can even find properties with an actual 10% CAP these days.
I viewed it from 2 points.
One is that you deducted 10% vacancy rate and then you have another 9% for management fees etc more then actual expenses. i think here you have some leeway to bring that $46/month to higher number.
secondly in Atlanta at least, the gross multiplier that I have normally seen as asking price is 80-90 of the gross rent. Your suggested price works out to 70 times the gross, which I think is the best you can get for a good property.
You have not indicated the other comaprable rents, but I think raising rents even three to five % and reducing expense 3 to 5% should improve the CAP rate.
which cap rate is better? higher or lower?