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All Forum Posts by: Account Closed

Account Closed has started 0 posts and replied 7 times.

Done!

@Brandon Turner @Joshua Dorkin By the way I have a very good trick to listen the Bigger Podcast on Android devices.

1. Download the free Google Music Manager to your computer. It will remain active on you active programs. This program is like a bug that will automatically upload to your Google Music Account everything that you download in iTunes. (mark that should upload music and podcasts)

2. On iTunes, download the bigger pockets podcast of your choice and the Google Music Manager will automatically upload the show to your Music App on your Android device.

3. On your Android device go to the Music App and it will be there even with the Bigger Pockets logo like it appears in iTunes.

I don't know if someone had already brought it up, but just in case.

Post: Just bought a 140 unit property. Here’s how I financed it (thanks BP!)

Account ClosedPosted
  • Orlando, FL
  • Posts 7
  • Votes 2

@Tom Lafferty thank you very much for sharing your thoughts as well. There was nothing basic, on the contrary, you provided such a valuable information as well. Let's stay in touch and let's keep the topic on the loop. Thanks again!

Post: Just bought a 140 unit property. Here’s how I financed it (thanks BP!)

Account ClosedPosted
  • Orlando, FL
  • Posts 7
  • Votes 2

@Brian Burke thank you very much for the quick response and for such a valuable feedback. I'm going to use your IRR's benchmarks as a guideline and then make any adjustments according to the particularities of the deal. As you pointed out, there are other non financial considerations as well, such as the experience and track record with similar deals, that are equally or even more important than the rate of return. After listening to your interview on Podcast #3, I decided to partner with a successful group of developers in a effort to create a team that can project credibility and build trust with potential investors.

I know that even trying to cover all aspects, it is not easy to build trust and raise private capital and that's the real challenge, but having guys like you that have done it and are able to share the way they did it, makes the path a little easier.

I'll keep you posted and if have any other questions I'll contact you. Thanks again for your willingness to share your insights and keep up the good work!

Post: Just bought a 140 unit property. Here’s how I financed it (thanks BP!)

Account ClosedPosted
  • Orlando, FL
  • Posts 7
  • Votes 2

Hello @Brian Burke

I'm now working with an Investment Summary for a similar deal as yours and I would like to make sure that I'm in line with their expectations. I know that each deal has its unique characteristics, but I would like to know some reasonable benchmarks in terms of what are the usual economic terms offered to private investors in multifamily RE transactions.

Interest rate - What is the interest rate range that is usually offered? Let say between 8-10%, or it is less than that considering the fact they also have ownership interest? Does interest is usually paid monthly or annually like a dividend?

Cash flow distribution or special allocations - What percentage of the cash flow is usually distributed. It is usual to not distribute profits during the first years or what exactly investors are expecting in that regards?

Profitability - There's any other "must have" that these kind of investors will be expecting in terms of profitability in exchange for their money?

Thanks in advance for your feedback on this.

Post: Anyone interested in a Central Florida Meetup?

Account ClosedPosted
  • Orlando, FL
  • Posts 7
  • Votes 2

@Michael Smith Count me in. If still thinking in a place close to UCF, Boston Coffee House at Waterford Lakes could be a good place. They have hosted Networking meetings before.

@Brian Burke

Brian, thank you very much for the quick response, it was a very valuable information. Btw, I just listened podcast #3 yesterday and I found your story very inspiring and remarkable. Like @Brandon Turner commented on the show, I see you and I want to be like you some day. Keep up the great work!

Regards,

Alex Casablanca

Hello Brian,

I just want to congratulate you for this great accomplishment and a great lesson for all of us in this wonderful community of investors. I had read before about the PPM and the 506d vehicle in Ken McElroy book The Advance Guide of Real Estate Investing, but the way you did it was absolutely remarkable. If you don't mind it, let me ask you a couple of questions about the deal structure:

1. Did you use a Broker dealer or Financial Advisor to put in the market the offering and help you to find qualified investors in a short period of time?

2. I have read from McElroy's book that the investors receive ownership interest in the LLC according to their equity contribution. What mechanism you used to calculate how much interest are you going to give to each investor according to their contribution?

3. How you maintain control over all the decision making while you could end up giving away the majority interest to your investors? It is through a GP entity that you control? Does the GP retain majority interest in the LLC as well?

Thanks in advance for your valuable feedback on this and congratulations again for such a great deal.

Best regards,

Alex Casablanca