We Buy Apartments

Residual Income is the Path to Ultimate Wealth

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• Lease Option FAQs
• Buyer/Tenant Process
• Seller Requirements

 

 Commercial Projects

Apartments (10 Units or Less)

    Midwestern or Southern states

    $30,000 per unit or less.

    Pay 75% current value (if repairs are required then count 125% of estimated repairs and reduced from current value).

    Seller Financing for 1st year or until property is functioning to point of acquiring commercial bank loan.

    80% occupancy or better.  (If occupancy is lower then purchase price will also be lowered to accomodate.)

 

Commercial Projects (or 11+ Unit Apartments)

    Present CAP Rate of 10% or higher.

    Pro-Forma CAP Rate of 12% or higher.

    Okay with mismanaged or distressed properties. (Purchase price will reflect 125% of expected repairs, minimum)

    DSCR of 1.3 or better.  (Debt Service Coverage Ratio)

    Seller Carry financing of 1 year or more. 

 

 

 Required Documentation

All of the below items will be required at some point during our Due Diligence Period.  Some may be hard to come across or may not exist.  Please make every effort to provide the below documentation.

 

    2 years of monthly rent rolls.  If current owner has had property for less than 2 years then all available rent rolls and previous owner's documentation.

 

    2 year Schedule E tax returns on property.

 

    2 year Profit & Loss Statements (itemizing all expenses).

 

1 year of utility bills for each utility paid by owner.

 

    Pictures

 

    List of repairs made by owner.

 

    Deferred maintenance list.

 

    Inspection reports (appraisal and mechanical) from seller's purchase if less than 2 years of ownership.