All Forum Posts by: Abel Sng

@Adam Sheren nothing wrong with excel! I still use it for our deals. If I were you I would probably stick with excel or try out some other pro's "analyzer". Always nice to see what other people are doing/not doing.

As for pitch decks / summary create an outline that you like and outsource the graphics to a freelancer to create you a standard template. It'll make all your future deals a lot easier and create some uniformity for you "brand".  

@Makayla Mullen you need to learn how to underwrite deals... period. Your proforma will make or break you. You absolutely can not be scared of numbers. If you are practice makes perfect!

No matter whether or not you are a passive investor, syndicator or lender you have to understand the in's and out's of the deal number wise.

Good luck!

@Chukwudi Motanya We use SMP (Strategic Management Partners). Not sure if they take on 50 unit props but they manage our 284 unit prop out there and are currently managing a 100 unit prop we have under contract as well. They are by far one of the largest and most reputable in the area. When we researched the ATL market every broker we spoke to only had great things to say about them.

@Ryan Aylward check out Old Capital Lending for CRE financing. They also have an awesome podcast.

@Daniel J. depends on your goals and how cash flush you are. MF is not a "no money no problem" industry. Seems like you have a pretty good gig if your job pays decent and is flexible.

There are many roles within the MF industry. If you're not certain to what would be a good fit take the time to go to meet ups and find mentors to figure out what interests you. 

@Adam Sheren how many units and props do you have under management? Also how fast do you think you'll scale? How experienced are you? What are you using now?

@Terrill Clark I'm 30 myself with two kids so I can feel for you brother! If you are currently working 72hrs a week making 4k a month (not sure if this is gross or net) you should consider finding yourself a "bridge job" where you can cut down your hours so you can focus on RE if that's truly where you want to go.

Bridge job:  A bridge job is a temporary job that gives you space to catch your breath, regain your energy, and provide some low-pressure income, while also giving you more time and energy to work toward finding your dream job/passion.

I did the exact same thing last year. Was working crazy hours in public accounting and now closing on a 284 unit prop with my partners! Sometimes you need to take a step back to move forward.

@Jonathan Twombly brings up all very good points and lessons first time MF investors don't realize and learn after trial by fire!

 @Terrill Clark when you say "actually net" are you referring to rent increases? In that case, it will wildly depend on your comps in the area and how much you put in for rehab and interior upgrades. There isn't a one answer fit all unfortunately for that question.

Seems like you're a hard worker and willing to put in the time. Is there a reason why you want to go it alone? My suggestion is that you first become a passive investor in a MF syndication.

What this will allow you to do is get access to the inner workings of how to structure a deal and give you a direct line to a sponsor. This will however typically require you to have 50k (typical minimum investment) and be an accredited investor / sophisticated investor depend on the sponsor's investor requirements.

Something else to consider is unless you plan on self managing, going straight into 60+ unit apartments allow you to be able to carry the expense of a 3rd party management company. Typically anything less won't work as the margins aren't there for them.

@Charles M. glad you already have that mindset! It will serve you well.

Do you know how to underwrite deals? If you don't than I would highly recommend learning how. It's more of an art than a science but practice makes perfect. You will always be able to provide value if you know how to underwrite, analyze, and find key opportunities and pitfalls in deals. Most syndicators have more deals thrown at them than they have time to look at. Imagine introducing yourself to a syndicator and offering to underwrite their deals or at least be able to give a second opinion on their underwriting? Easy value proposition that will get your foot in the door.

@Jonathan Twombly Yep! Escrow is pretty common... closing on a $12.6M FNMA loan and we had to escrow 1.25x of PNA and 1x of all other capex. Additionally, escrowing around $300 annually per door monthly for replacement reserves. However, it's shocking to me that the lender would require $1k per unit for RR and not inform the borrower unless there was an abnormal circumstance. Normally this is disclosed at signing of loan application.

Haha! You're totally correct on the seal and stripe! Luckily it's typically a pretty minor expense.