All Forum Posts by: Account Closed

Most agency multifamily loans are non recourse (fannie, Freddie, and FHA) Rate today for a 223f FHA loan would be in the under 4% fully amortizing, Additionally, CMBS loans also do not have strict net worth requirements.

Siva, I understand your concerns with removing your property management company but I am not sure that your alternative is self manage.

If you are removing your property management company for not performing, it is an easy discussion, you terminate. If you are removing them because you want to save the cost, then I assume that you are willing to invest your time and value into managing your properties. Be should that the cost benefit is worth your time.

As for a transition, it is your property and all records, books, documents, etc. are already yours so that the only real functional issue is do you have a team of vendors, and contractors, third parties lined up. Also, is your company using a software management system that you can economically get and upload your existing info or will you need to rebuild that part accounting.

Anton, you are correct that putting all your eggs in one basket is not the smartest choice but I think Jerry is obviously a very sharp individual and knows that, or that the entrepreneurial spirit in him that risked alot and grew his business into a successful company is something that motivates him. Either way, I congratulate him on his success and respect his decision to get in to real estate.

My comments were directed to say that 1) I know of very few good quality syndications that will meet his objectives, and 2) smaller projects, while they might be easier to "get your hands around" take a lot more daily interaction and are less efficient to be able to use quality third party management and professional advisors.

With 2 million in equity, he can get non-recourse financing (minimal net worth requirements), and buy a very solid stable B+ or better deal in good solid markets, (maybe not Dallas or Denver) that with good management and some good advisors, he can probably be very successful. Jerry, Anton is correct that finding 12%+ CoC deals is going to take some real work and you should really find someone you can trust to help you.

Best to all.

Jerry,

Tons of advice and I am sure that many here who are envious of you situation. Based on some of your comments and response to the suggestions, I would not advice you seek a syndication. Nor would I advice smaller or multiple properties. With two million, you should look for a great management company and find a property in the $6 - $8 million range that will afford you the direct benefit of ownership with a minimal amount of daily interaction. Syndication are best for those that are seeking the advantages of investing in larger properties without large sums of money. Alternatively you could invest in several syndications and spread the risk but also the returns, as the syndicator will get some for his efforts.

Now is a great time to use leverage with most Multifamily rates well below 5%  and with a good long term mortgage, you should be able to meet you return expectations.

Best of luck

ps. There are several good management companies I can recommend to you is you are looking to invest in the Colorado market however I would caution you that the Colorado market is considered by many to be over heated and getting you returns may be difficult.

Obvious issues are zoning and business licences. We have a similar set up in Colorado, and had to get the site split into 4 parcels to get four units built, after that it was no big deal. We could have applies for a business rental but that would have required  a lot more in the form of permitting and regulations in addition to taxes being significantly higher as a commercial property.

Most mountain areas limit buildings by wells and water tap permits so be careful to make sure you have adequate permits. We had another project in Colorado where zoning allowed us 63 units but we could only get 16 water taps. You needed one per unit so the deal never got done.

You might be better off buying an exisiting motel or large house and doing a B&B, some of the permitting can take years to get in place.

Please PM me and I can give you a couple of people depending on you specific needs.

Update - Multifamily Partners wanted.

Thank you all for the tremendous response and the large numbers of inquiries. As of today we are almost fully committed and just need one or two more partners. I apologize if I have not gotten to everyone to respond but is you still have an interest, please reach out to me today as we will be finalizing everything in the next day or so.

Thanks again.

Nicolas

Derrick

Please give me a call I would be very interested.

Thanks

As a former Fannie asset manager, You need to push Fannie to give you your money back. Fannie has a real problem here because they really can't foreclose on the property. The title error means that they either had a mortgage on the driveway in which case they just sold you a driveway, unfortunately, I do not think that it was a valid mortgage since the owner (the son) did not sign the mortgage.

I have been through these kind of situations and title issues can be complicated. I realize you may want the property but this is going to take some time to clean up and your best option is to get your money back and then follow the litigation to see if and when it comes back on the market. Alternatively, you might investigate "squatters rights" and see if you can over time establish your ownership that way (not advisable).

Good Luck

Brook 

Reach out to us via BP messaging, we are looking for partners in the area.