I recently came across an off-market 15-unit multifamily opportunity close to Ann Arbor, MI and would appreciate the community’s thoughts. Here’s what I know so far: - 15 units - Preliminary Underwriting (My Assumptions) - Estimated NOI: ~$79,943 - Estimated Cap Rate at Asking Price: 9.41% - Estimated Value: ~$999,000 using an 8% cap rate - Assumptions: - $850 average monthly rent - 5% vacancy - 45% expense ratio  Here’s where I’d appreciate some guidance. The broker had me sign an NDA, but the seller is insisting on receiving an LOI before releasing the rent roll, T-12, unit mix, occupancy information, and details on deferred maintenance or CapEx. I understand every seller has their own process, but I’m curious how those of you with more experience would handle this. - Would you submit an LOI based on limited information? - How would you structure the LOI to protect yourself? - What contingencies would you include? - Have you run into this before? If the deal continues to make sense, I’d like to pursue it. I’m flexible on how it’s structured—whether that’s an assignment, buyer representation, or another approach that makes sense for everyone involved. One of the reasons I joined this community was to connect with people who enjoy putting commercial deals together. If this is something you’d like to discuss or potentially work on together, I’d love to connect. Thanks in advance for your thoughts! — Scott

This looks solid. Evaluated under 60 seconds. Thank you @Tamala Jones Great Job Cap Rate Check $397,615 ÷ $2,990,000 = 13.3% ✅ (matches OM) Revenue (from OM) ≈ $903,287 Margin $397K ÷ $903K ≈ 44% margin (solid for economy hotel) DSCR + Yield (THIS IS THE PLAY) Assume conservative debt: Loan = $717,600 Debt service ≈ $60,000/year (safe estimate) ⸻ DSCR $397,615 ÷ $60,000 = 6.6 DSCR 👉 This is VERY strong (lenders love anything over 1.25) ⸻ Yield on Recorded Price $397,615 ÷ $1,345,500 = 29.5% yield 👉 This is where you win — not the cap rate, the yield on structure

I have two off-market single-family deals available. Looking to connect with serious cash buyers. DM for details. 📍 Deal #1 – Earlsboro, OK706 S Layton Ave, Earlsboro, OK 74840 🛏 3 Bed / 🛁 1 Bath📐 1,162 Sq Ft📅 Built: 1962 💰 Price: $50,000🔨 Rehab: ~$45,000📈 ARV: ~$140k–$150k • HVAC• Warm air heating / Window unit cooling• Frame siding / Composition roof Great value-add opportunity with solid upside. 📍 Deal #2 – Chicago, IL532 N Drake Ave, Chicago, IL 🛏 2 Bed / 🛁 1 Bath📐 1,038 Sq Ft🌳 Lot: 0.09 acre📅 Built: 1908🚪 Vacant 💰 Price: $140,000🔨 Rehab: ~$50,000📈 ARV: ~$270k–$280k 📸 Photos:https://drive.google.com/drive/folders/1F7hYl071a_t18zj9cRspVWpNIKfNOjY6 📊 CMA:https://services.leadconnectorhq.com/documents/download/iE2gmjzI8UfAx6tyfq46 Strong flip or rental opportunity in a high-demand area. 📲 Serious buyers only – DM if interested or if you’re actively buying in these markets.

I was privileged to attend Paul’s presentation of The Commercial Cashflow Blueprint at the “In Person Workshop” hosted by The Denmarks! First, KUDOS to Paul for an outstanding presentation which had all eyes focused on Paul’s clear, concise, and straightforward information. For me, Yesterday’s presentation was the proverbial “made my head crack open” presentation. As many of you are aware, I am the primary caregiver for family member with a serious illness. Time wise I have struggled to stay in step with the information we are privileged to access. Yesterday, Paul laid it out, answered questions from the attendees repeatedly, and “CRACK” went my brain and clarity stepped in. Undoubtedly, the most important session I’ve ever attended…anywhere! I am grateful. Thank you, Paul And thanks to The Denmarks!

First off, shoutout to Paul Thompson. As always, he delivered a great presentation at the “Commercial Cash Flow Blue Print“! For everyone I met today in Alabama, here is a simple breakdown of what Paul went over today. A quick “back-of-the-napkin” underwriting method with each step labeled. SECTION 1: CORE FORMULA (NOI) NOI = Units × Monthly Rent × (1 − Vacancy) × (1 − Expense Ratio) × 12 months ***** ******* SECTION 2: HOW THE PERCENTAGES WORK Vacancy = 5% 1 − 0.05 = 0.95 Meaning: You keep 95% of the income after vacancy Expense Ratio = 45% 1 − 0.45 = 0.55 Meaning: You keep 55% of the income after expenses ***** ******* SECTION 3: EXAMPLE 1 (8 UNITS) Given: 8 Units $1,200 Monthly Rent $1,000,000 Purchase Price $60,000 Annual Debt $200,000 Cash Invested Step 1: Gross Monthly Income 8 units × $1,200 rent = $9,600 monthly income Step 2: Gross Annual Income $9,600 monthly × 12 months = $115,200 annual income Step 3: After Vacancy $115,200 × 0.95 (1 − 0.05 vacancy) = $109,440 Step 4: NOI $109,440 × 0.55 (1 − 0.45 expenses) = $60,192 NOI Step 5: Cash Flow $60,192 NOI − $60,000 debt = $192 annual cash flow Step 6: Cap Rate $60,192 NOI ÷ $1,000,000 price = 6.0% cap rate Step 7: Cash on Cash $192 cash flow ÷ $200,000 cash = 0.1% return Conclusion: Break-even deal. This does not meet our criteria. As deal finders/wholesalers, we are typically targeting at least an 8% cap. ***** ****** SECTION 4: EXAMPLE 2 (12 UNITS) Given: 12 Units $1,100 Monthly Rent $1,200,000 Purchase Price $70,000 Annual Debt $240,000 Cash Invested Step 1: Gross Monthly Income 12 units × $1,100 rent = $13,200 monthly income Step 2: Gross Annual Income $13,200 × 12 months = $158,400 annual income Step 3: After Vacancy $158,400 × 0.95 (1 − 0.05 vacancy) = $150,480 Step 4: NOI $150,480 × 0.55 (1 − 0.45 expenses) = $82,764 NOI Step 5: Cash Flow $82,764 NOI − $70,000 debt = $12,764 annual cash flow Step 6: Cap Rate $82,764 NOI ÷ $1,200,000 price = 6.9% cap rate