What Would You Do? #2 · BIGGER PROFITS 💪

What Would You Do? #2

Two deals hit your inbox the same morning. Both list at $2,100,000. You can chase one.

These are made-up numbers for practice. Don't go looking for them on Crexi.

Deal A: Self-storage

420 units, mix of drive-up and climate controlled

84% occupied

Seller's NOI: $147,000 (a 7.0% cap at asking)

Rates haven't been raised in three years, per the broker

Run by the owner's nephew, part time

4 acres, with 1 acre sitting empty

Deal B: 30-unit apartment building

Built in 1978, all two-bedroom units

93% occupied (28 of 30)

Seller's NOI: $136,500 (a 6.5% cap at asking)

Rents about $150 below the newer building across the street

Third-party management at 6% of revenue

Roof is 19 years old

Before you answer, remember October 14. Value comes from NOI. Which deal has more room to raise it? And which seller's NOI do you trust less?

The rules

Pick one. Then tell me the first number you'd verify before you'd make an offer.

I'll post my pick tomorrow in the comments.

Chris Rassam 💪

0 comments

What Would You Do? #2

skool.com/biggerprofits

The Ultimate Investor Community Teaching You How To Learn Commercial Real Estate And Achieve Bigger Profits With Less Effort!

Leaderboard (30-day)