Deal or No Deal?

Are you licensed as a REA? If not, this sounds to me where that fine line is being crossed.

As investors, we are able to do what we do w/o a license because we are selling the "contract" which is assignable and you state here there is "no contract".

Be careful! Is the seller not agreeable to doing a contract?

I didn't even look at numbers here to see if they work because this just jumped off the page at me.

it is too hard to tell without more pictures and copies of verifiable info (did you see the lease agreements or copies of the rental income schedule from his tax return?)The cap rate is around 14% if things are correct but there may be delayed maintenance, replacements needed on HVAC, roofing, etc. You have to figure all of that in so my guess is the 137K is too steep. It would be interesting to know the assignment fee which would allow you to know how much of that 137K is frosting.

Hi. Actually this was an email sent to me from somebody else. I should have formatted my post a little better. It's easy to miss it, sorry. I got to edit it. But you are right though. And I did ask about the contract, and why it wasn't assignable. I'm just waiting for the reply.

Hi Bill,
I actually just received the email about 2 hours ago, so I really didn't get much researching done. To tell you the truth, I've been talking and networking with so many investors these past couple of weeks I didn't even know who sent me the email at first (couldn't recognize the address)....pretty embarrassing on my part. I did get pictures sent to me, and to tell you the truth, the place looks immaculate...inside and out. I don't know much about anything else however.

I'm not sure I understand what you're trying to do with this property; are you getting the information for this property from another investor or from a rea for the seller?

Do you have a buyer, or are you looking to buy it for yourself?

Wishing you success,

Valerie

Actually this was just an email that was sent to me. I don't know much about it at all. I don't want to tell any of my buyers until I get some more info.

I never got a reply to any of my questions as of yet.

Hi, I am in agreement with all above We dont have enough info. Initially the numbers look good, but again like Bill says its SO important to have the whole picture. Age of major systems - heat, roof, etc, do tenants pay utilities or does landlord, etc etc. Lots of homework to do before you jump or try to present to other investors if thats what you are doing. Cost of insurance, taxes, property management??? So many items that are vital to running your numbers. You must have a true NOI (Net Operating Income) to work from. Its a great start tho - finding the deal Now just dig deeper. Trust me, once you have all this info in place and can show an investor a true cap rate return on their investment you will find the buyer!

I Agree. I'll give this person another day to get back to me. If she doesn't, I'll contact her once more with all those questions again. No biggie.

Thanks,
Mike