Tommy Dobczyk walks through reverse-engineering a $250 million real estate project, working backward from $5,000-$8,000 monthly rents to calculate NOI. A partner spent six months trying to raise capital for an Altadena redevelopment after the fires, but kept hitting rejection from investors.
Here, let's dictate it.
Ready, go. Reverse engineer the numbers for the quick math section from $5,000 a month to $8,000 a month. Reverse engineer those numbers to see what we would end up with at an NOI if we spent $250 million to complete the entire project up there. So basically saying if we raised $250 million, spend it on that property, what would be our net operating income with those, with those rents?
So what we're doing here is we're doing the numbers and the numbers tell us what to do, right? So when we can reverse engineer what we're looking for, And we can restructure it. So while this is doing this, a really great example yesterday, one of my other partners, she came to me with a whole other project in Altadena. The fires completely devastated that entire city, like the houses, the businesses, everything, schools gone. And so she grew up there. So we're talking about it and she's been trying to raise capital for this particular deal for 6 months and just every door being shut in her face.