What Would This Be Worth To You?
Without knowing the asking price (since I haven’t called yet),
What would you say this property is worth:
Bank Owned 200 unit Apartment Complex
Built in early 80’s
$92,300 per month rental income.
Professionally managed
Expenses, such as taxes, garbage, sewer, etc not yet known.
There aren't many 200 unit complexes in this area (diferrent state than I am in) to figure comp prices.
Would you say this is worth $4m?,$5m?,$6m?
David
[ Edited by HightechRedneck on Date 02/23/2004 ][ Edited by HightechRedneck on Date 02/23/2004 ]
Anyone?
Hard to just throw out a number. You need to see if it pencils. I would guess somewhere around $10million. A lot of factors here. Do the units need rehab.
Is it section 8, etc.... To broad of a question. Let me ask you a question. What did you pencil it at and can you show us your figures? What type of financing did you have in mind for the purchase. You know apartment financing is different than SFR, right?
Best RIches,
Jeff Adam
[addsig]
Well if it were here in CA I would guess it to be priced at over $12M Because everything here is overpriced... and almost nothing here ever hits the market here where the 1% rule works....sorry I couldnt offer more help......but I would think that based on the monthly income that I would still bet in any market it will at least be priced at 8-10 times the gross yearly...........so probably at least $10 million....good luck and post up what it is priced at....... <IMG SRC="images/forum/smilies/icon_biggrin.gif"> [ Edited by BMan on Date 02/23/2004 ]
As the resident Goniff, given the emense amount of information that you have furnished. Making the assumption that it is located in some strange and isolated community, Bank owned yip prior management problems. The possibility of gunfire followed by small local fires on any contemplated evictions, I would bid the sum of $4,123,000. This sum to be furnished as an inducement to sell by the Bank now in Ownership. The interest rate would be the usual 4.75 and the payment plan a 30 year with no prepay or Due On Sale and an allowance to overpay on any pay period.
That deal I would probably take. As long as it was Fee Simple, no Indian Burial Grounds underneath. Or any oozing of black stuff from the soil, unless the oil rights go with it.
I look forward to the acceptance of my offer. By the way is the bank in ownership that politicaly correct bank called Beal, and is it located in Plano, Texas? I think they have about $200,000,000 worth of Non Performing Paper and are in the process of foreclosing on most of it. Now that was a clever buy.
Lucius
This is an impossible question to answer. How much is an Orange worth? In an orange orchard, not much. To someone lost in the Sahara desert with only a credit card...quite a bit.
I can guess, but I can't even hit the broad side of a barn without knowing the expenses and the condition. Income property (5+ units) is appraised based on (drum roll please....INCOME. Net income that is. I'd guess that fully managed you're probably paying out 45% in expenses. Cap of 9 - 11, I'd price it at around $6M, give or take 1M.
The bank could take much less, or demand much more (whether they get it or not ).