Great talking to you today!!

As I explained all muti-family have or should have a CAPEX account for needed upgrades and repairs.
On a 130 units with a NOI of $1.5 M the CAPEX may be in the $150k range.
This will also be a line item in the Underwriting expense used to raise equity from other investors.
A recent Hollywood Fl property postulated $15 M debt and $7 M equity on a $22 M purchase price

with $1.5 M NOI. $1.5 M/0.06 indicates a value of $26 M. Indeed, the client indicated this property
appraised at $26.5 Million.
 

My registered regulated financial services company cabex-fx.com in 3 countries, USA, Canada & Morocco has created a
Fixed Deposits Rewards program like a CD paying 20%/month on $250k to $15 M.

So on an equity raise of $7 M should they raise it $350k (added to the already budgeted $150k) a CAPEX of $500k could be created.
Placed in the CABEX FDR this will generate additional other income of $1.2 M, lmost as much as the NOI. (Net Operating Income
Based on an income of $1.5 + $1.2 M/.06 would give a value of $45 M. This is a false value as the income is only guaranteed for 1 year, renewable a second year.
Therefore the increased value is not bankable.

 

Now doing the right thing, the other income would be used to upgrade the property so added value rent 

increase could occur. So an additional $1.2 M could be spent on depreciable assets, write-offs, adding

enough value to increase the rents say $200. 

 

Using Grant's Added Value Calculator 130 units with a $200/month rent increase at a 6% Cap Rate

an additional value of $4,992,000 would be added to the property. This is based on income alone,

An ADDITIONAL  10X over the CAPEX of $500k properly used, and one STILL Has the CAPEX

at the end of the year (Christmas Bonus Distribution???).

 

Simply click on my referral link https://cabex-fx.com/register?invite=CKgirLfeG1

to create your account, no initial deposit required. It took me 5 minutes to open,

another 20 minutes to complete the online CIS/KYC (simple address/ID verification)
and 5 minutes to 24 hours for approval. No Terrorists Allowed.