Warning: fsockopen(): php_network_getaddresses: getaddrinfo failed: Name or service not known in /home/irreia/public_html/wp-content/plugins/topsy/topsy.php on line 337

Warning: fsockopen(): unable to connect to otter.topsy.com:80 (php_network_getaddresses: getaddrinfo failed: Name or service not known) in /home/irreia/public_html/wp-content/plugins/topsy/topsy.php on line 337
Determining Capital Requirements | International Residential Real Estate Investors Association
Tuesday January 23rd 2018

Join Us On

join the IRREIA linked in group

Determining Capital Requirements

Investors prefer certainty and capital is a large component of that.  During due diligence, the objective for capital are:

  • Determine cash requirements to complete legal and other preclosing costs,
  • Determine cash requirements for anticipated rent roll changes post closing,
  • Determine needs for immediate improvements as  determined by your physical inspection,
  • Determine needs for immediate improvements as required by the property condition report,
  • Determine needs for improvements to support the business plan developed for the property,
  • Determine improvement capital requirements for the initial capital reserve,
  • Evaluate and quantify marketing cost requirements,
  • Allow a buffer of cash reserve for the inevitable development that are not anticipated during due diligence, and
  • Evaluate and quantify reasonable reserves for potential negative operating costs during immediate ownership and based on potential future risk.

“The IRREIA - Making residential real estate investing more fun and rewarding
through better education, tools, information, and networking!”


No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.

Leave a Reply

Warning: Illegal string offset 'solo_subscribe' in /home/irreia/public_html/wp-content/plugins/subscribe-to-comments/subscribe-to-comments.php on line 304

Subscribe without commenting