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

Comments(3)

  • mrcoolxyz8th June, 2005

    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.

  • ashwin8th June, 2005

    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.

  • Sergei59th June, 2005

    which cap rate is better? higher or lower?

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