Alan's Review of Peter Harris and Commercial Property Advisors

12 Jul 2018 04:52 9
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Sorry for the bad audio! Alan is not experienced with making videos. This was Alan’s first deal after joining Commmercial Property Advisor's Peter Harris Protege Program. This deal was Alan’s 3rd deal that he had under contract. All the others fell out of contract as a result of due diligence, inspections, etc. The Seller of this property was having health issues and needed to sell. He also discovered that every unit’s rent is under-market and can be immediately increased. Although the property needed about $2,000 in repairs, Alan negotiated a $5,000 repair credit at closing. Alan teamed up with a local property manager to assist in due diligence and eventual management of the property.
Deal at a Glance
- Purchase Price: $260,000
- Property type: Multi-Family, 5 unit, 2-story
- Financing: 75% LTV loan from a local lender
- Down payment: $60,000
- Credit back at closing: $5,000
- Cap Rate: 12.51%
- Cash-on-cash Return: 33.47%
- Cash flow per month: $1605
- Exit strategy: hold for cash flow

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