Buy Shoppes on Sawdust, offer $2.65M
Details
The bank decides the loan, not the 20% rule
Income → loan → cash to close.
Why every asking price is too high
Dots = building returns. Dashed line = loan cost. Below the line: borrowing costs more than the building earns.
Every listing, graded
Four numbers per building. Tap to explore; calculator changes update everything.
NOI = yearly rent minus expenses. Upside figures are estimates, subject to leases and lender approval.
The plan: buy, improve, refinance, repeat
Increase rent and yearly income, then ask the bank to lend against the higher value.
Details
Improvements are paid from the monthly budget. We subtract them once when showing family cash still invested, not again from refinance proceeds. Estimates exclude refinance fees and use the original purchase loan balance, so principal paydown is not counted.
Dad's $700,000 should be a loan from Dad to the LLC at the IRS applicable federal rate, so it is not a gift and the building is not in Dad's name. The $5,000 a month is the payment on it; ask the CPA to set the rate.
Family money still in after refinance
Green ≤ $0: all back. Red: still invested. Before fees; LTV estimate.
Building worth today vs after
Offer → estimated value after improvements.
Details
Run any price through the bank's math
Change the rate or Dad's cash and every card and chart on this page follows.
Assumptions shared by the whole board
Details
Loan cost at these terms: of the loan per year. Dad's cash alone closes about of building at a 7.55% cap.
Property pick one or type your own
Details
What each one costs the family
All at the assumptions above. Blue is Dad's $700,000; amber is what Walid and Yousf would add.
Asking price vs our offer
Offers are built from the building's own stated income at the cap rate the risk deserves.
Cash to close
Left over each month after the mortgage
Income minus the loan payment, at our offer. Negative means the brothers write a check every month.
Return on the cash we put in
Yearly cash left over divided by cash invested, at our offer. A savings account pays about 4%.
Full numbers table
The letter of intent
Details
What happens next
- Walid: Call STRIVE for Kuykendahl’s leases, rent roll and operating statement.
- Yousf: Get Stellar’s rate quote for a $1.9M loan.
- Walid: Confirm Sawdust’s rents and triple-net leases before sending.
- Yousf: Form the LLC; document Dad’s loan with the CPA.
- Walid + Yousf: Choose the building before November 9.
Updates
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