I’ve found a foreclosed apartment complex here in the Nashville area that’s a fantastic deal - 80% occupied (Nashville average is 90%, so room for growth). The bank will let it go for 7-7.5 million and at that price it’s over an 8% cap rate based on last years expenses. What’s the best way to pull people together to invest in this with me?
You do realize you can buy triple net leased properties with cap rates similar to what you’re looking at? An apartment complex at just over an 8% cap rate is not a deal. I know there’s room for growth, but your price shouldn’t already reflect/assume that the growth has taken place. Investors are scared to move right now. I do wish you luck.
Hello everyone, :help
Since you’re on the subject of foreclosures.
Does anyone knows of websites where they advertise commercial properties in foreclosure?
Thank you
A foreclosure with an 8% cap rate is a crap deal. You can easily get a 10% cap that is not a foreclosure with absolutely no negotiation.
well at 80 percent an 8 cap isn’t terrible, but in this market you are going to have a tough time getting investors. I am assuming this 80 percent at 8 cap is not pro forma but is current roi
Do your 8% cap and report back in a year at your foreclosure. You need a solid 10% cap or higher on any real estate investment to be comfortable enough to get a small amount of cash flow.
The bank is being that stingy? Usually the bank throws warm bodies in there to get the occupancy up and then even takes a hit.
What are the details? Maybe we can help you with a better offer price. But you will certainly need a hell of a co-signer. Is The Donald available?