All Forum Posts by: Adrie Moses-bailey

@Grant Thompson unless the property is being purchased very under-market value it is weird for a tenant to pay $1400 for rent when they can pay what appears from the calc to be less than $500 to own.

@Alan Bostick

I haven't heard of them doing that for a single family rental. Several will do equity for large deals, think $20 million equity check but its not worth it for them on a single SFR. Maybe if you were buying a $100 million portfolio of SFR you could get institutional capital.

@Wenda Wang thanks! i will reach out. Have you worked with them? Can you share your experience if so?

@Jeffrey Donis thanks Jeff I will check them out

Hey guys, looking for a property manager in charlotte who works with 2-4 unit and 5-20 unit multifamily properties. I realize that straddles two different sides of the business and am interested in speaking to both groups. can anyone recommend anyone I can reach out to?

Also would love to hear about your experiences from a pricing perspective. 

Hey BP,

I have a couple questions for doing my first MF deal and am hoping someone with experience can answer. Over the next 9 months I want to purchase a first MF residential building (10 units or more). I will intend finance it by raising around 2-300k in equity and look to borrow the rest to fill out the capital stack (75-80% LTV).

My question is what sort of reserves are needed at this property size? Or are reserves needed at all? What has been your experience? 

Also what have you seen in terms of the acquisition experience when it comes to lawyers and all the other closing expenses? What do you budget for these and at what point in the process does the money for these start flowing out. On the deals I work on this stuff is usually just wrapped into a closing cost line item and paid for as part of the loan but obviously there is expense before that point as well. 

@David Braun, out of curiosity, are all the investors in your syndicate accredited? Wondering if they all need to be, I was just reading that the reporting requirements for having non-acc investors are so steep that it kills the benefit and am wondering if that is true from anyone with experience. 

Unless 1) you have a lot of money, 2) you are buying so below market it doesn't matter or 3) you negotiate a very low deposit then I would not offer from day 1. I would think they are offered only once the PSA is signed by which time you should have the DD materials to know if you want to make an offer. Any reason you can't put a badboy carveout (fraud),title or environmental carveout into the EMD agreement?

HI Guys, I am a new investor (no properties yet) and I have set up a meeting with a CPA who focuses on tax strategies for real estate investors. I realize it may be early to talk to a CPA but I needed to take some next actionable step to keep my fire alive and I want to get ahead of a large tax bill coming next year. I am interested in cutting my teeth on some SFR while building up capital to move to multifamily, I currently am employed underwriting commercial real estate so I do think that is feasible once I get the experience.

My questions for him will all be in relation to real estate investing so I am starting a list right now to make the most out of the time I am paying for. For someone in my position what questions do you think I should definitely ask and what are some things you would want to know?

Thanks, appreciate the help. 

Micheal that is a fantastic point I had not considered. Taking a private loan on the down payment is an option and does have the benefits you mention. I imagine the deal has to be even better though to pay the cost of capital on the equity going from 0% to whatever interest rate I work out with friends but the ROI for me would be higher due to the much greater leverage. So too then is the risk.