All Forum Posts by: Anthony Chara

I hold training classes all around the world on RE Investing. One of my favorite is a week aboard a catamaran sailing around a warm, exotic location. This year we're in Fiji for a week of learning and fun. We eat, sleep and learn while sailing around beautiful islands. For most of you this can be written off as a business trip. Contact me to learn how.

Click here to learn more about this event.

Dates are August 5-12, 2023. Yes, a full week aboard a 59' catamaran. You sleep on the boat in your own room with queen bed and bathroom. We usually sell out months in advance, but one of our passengers had a conflict arise and can no longer attend. Their loss is your gain. DM me or reply here for more details.

Cost is $8595 per cabin, 2 people per cabin max. I will also throw in my Apartment Investing Mastery Home Study Course and a seat at one of my 4-Day Apartment Investing Mastery Boot Camps for both passengers.

Bridge Lenders will typically want to be in 1st position. I don't know any that would be in 2nd. Like @Greg Scott stated, if you don't have skin in the game, good luck.

However, you might want to google Mezzanine Lenders. Some of them might be ok with the loan as technically, they are not in 2nd position since they loan against the entity that owns the apartment, not the apartment itself. Most still won't do 100% CLTV.

Have you checked with your 1st lender to see if they will even allow a 2nd position loan? Most won't these days with the uncertainty of the market. Therefore, even if you were lucky enough to find a lender willing to go into 2nd position, the 1st may still not allow it.

Lastly, you might have to do what most investors do, go raise the DP and Closing Costs from investors and do a syndication. Much less risky than a bank anyway.

Hey @Drayke Jacobs-Van-Tol, how long have you owned this property and how long does it normally take your PM to find good residents? I'm assuming based on your post it's not normal to take this long?

A couple of things come to mind. First off, what source is your PM using to determine Market Rent. Here are a few you can look at, but keep in mind, these are usually a little below market. RentoMeter.com and RentRange.com. You can get a few reports off of these for free, then they charge an annual fee.

People that have been evicted can be tough residents. There's a reason they were evicted. However, one strategy you can try, if you can do this in your municipality, is to charge a higher security deposit. Some muni's will limit how much you can charge so research that first if you want to give it a try. The more they put down the less likely they are to damage the unit or vacate early. I have a couple residents paying 1.5 to 2 months rent as a deposit. However, none of them are due to evictions.

Lastly, this may sound odd, but you might try increasing the rent. The more you charge, usually, the better the resident you'll get, but again, that depends on what's a good rent for your area to start with along with unit quality, etc. 

@Bjorn Ahlblad is correct. Cap Rate (CR) is not subjective. You just take the Net Operating Income (NOI) which is all the income the property generates and subtract your Operating Expenses for things like Taxes, Insurance, Management, Maintenance, Utilities and Reserves (TIMMUR). This gives you the NOI. Divide the NOI by the Asking Price and you get the Cap Rate.

Do not add in Capital Expenses to your TIMMUR. Large ticket items that you usaully only do every 5-30 years like roofs, landscaping, parking lots, boilers, chillers, etc are some samples of Capital Expenses/Improvements. These affect your cash flow, but not your NOI.

Once you know your CR, this is the % of return you'd get on your property before you take your leverage (loan) into account. Let's say you have $135K of NOI and the seller is asking you to pay $2MM for the property. Take $135K and divide it by $2MM and you get a CR of (135,000/2,000,000) = 0.0675 or 6.75%.

Other investors come into a market looking for certain returns. Over the past 10 or so years, investors have been okay with over paying for some properties in order to take advantage of Bonus Depreciation or as a hedge against inflation which has caused CR's to compress or decrease. If you play with the numbers you'll find that as the NOI stays the same and the asking prices go up, CR's go down meaning investors are okay with less returns in order to get control of the asset. Some are going to be paying for that in the form of foreclosures which have already started. They bought totally based on Proforma numbers with Bridge debt with adjustable interest rates.

Back to CR. Investors are setting the CR range as they buy properties in a particular area. They will slowly go up and down over the course of many years, usually! lol

This month's Luncheon features Baskal Korkis as our guest expert. Baskal bought his first property at 19 years of age. He's built an impressive real estate portfolio over the past 2 decades and many of his purchases include talking the sellers of some of these properties into doing Seller Financing.

That's the main focus of this month's Luncheon. He's going to share some of the techniques he's used to obtain Seller Financing. Join us to add these techniques to your own repertoire when talking to your Sellers.

Remember, after we finish with Baskal, we open up the meetings to nationwide networking. You can tell people about yourself, where you're located, where you're interested in finding investment properties and what type, and, you can ask for others who might be interested in the same areas to network and/or partner with you on your projects. If you're a vendor (RE agent, roofer, lender, plumber, handyman, etc), you can let everyone know that on the webinar.

This is your opportunity to network with other like-minded investors and to keep learning about this industry to get out of your J.O.B. and start living the life style you want and deserve!!

Are you tired of getting lost in the sea of information on creating wealth?

Do you wish there was a way to cut through all the noise and confusion and learn a core principle of wealth creation in just one hour? It’s like cutting through a dense forest to find the main trail that leads to the treasure of building wealth.

If so, we have great news for you!

We are thrilled to invite you to attend our upcoming Monthly Nationwide Luncheon & Networking webinar with my original Apartment Mentors partner, Mr. George Antone!!

During this 1-hour interactive dialog, George will remove all the noise and teach you the four fundamental factors of wealth creation – no matter what you invest in.

These four factors are the building blocks of wealth and provide the foundation you need to achieve your financial goals. They are timeless truths that successful people use to build and maintain their wealth. Understanding them is crucial for creating a successful financial strategy.

George is a three-time bestselling author. He has distilled decades of experience and knowledge into this 1-hour training that will completely transform how you think about building wealth.

You will walk away with actionable insights that you can apply immediately to your financial life.

Understanding these wealth principles can super-charge your wealth-building by:

Enabling you to gauge how to reach your target wealth goals faster.

Assist you in making more informed financial decisions.

Develop a disciplined and consistent approach to planning your own wealth journey.

Ensuring that you create a personalized strategy that aligns with your goals.

Access the key metrics that you will need to optimize your journey to wealth.

Join us on Tuesday, March 21st and take the first step to controlling your financial future into your own hands!

Remember - We also do Nationwide networking after we finish with George so stick around to meet people from all over the country.

This month's Nationwide Luncheon will blow you away. Why? Let me start by asking you a question. What do you do if you're a dentist that gets tired of sticking your fingers in other people's mouths? You learn how to turn your outrageous tax situation into a cash flowing money machine. You learn how to raise tens of millions of dollars to invest in 'green' technologies like carbon scrubbers that eventually will be needed on almost every oil well drilled in the US.

My guest expert this month is Dr. Eric N. Shelly. Eric is an entrepreneur and investor. After earning a BA in Physics at Franklin & Marshall College and a DMD from the University of Pennsylvania, Eric established and grew a thriving multi-doctor, multi-office dental business which has prospered for three decades.

Eric sold his dental business and now focuses on sharing his skills, connections, knowledge, and opportunities with successful professionals. He and his team build and manage diversified strategic portfolios and projects targeting high yields, tax advantages, and equity growth and preservation.

Currently, Eric and his team are focusing on the clean energy technology space, where they have acquired over $50 million in assets over the past 2 years.

I'll be interviewing Eric and you'll learn how you can think outside the box and make some great passive income.

Yes, one of my students has done this 4 times totaling 519 units. Contact @David Peters for assistance. 

What a great way to make money for yourself and your investors while doing good at the same time. Converting Hotels to Affordable Housing.

Back in 2019, David Peters was looking for that great multifamily deal like many of my students. He just couldn't find deals that he thought made sense. That is, until he was introduced to hotel conversions.

David took on this first project, and then along came COVID. He used COVID to turn lemons into lemonade by buying up struggling hotels for pennies on the dollar with his investors and then partnered with local authorities to turn those underutilized hotels into affordable housing.

Currently, David owns 4 properties with 519 units that he has acquired since the start of COVID and is doing extremely well. Join us on this month's Apartment Investing Luncheon to learn more about how he did it and why you might consider doing this yourself.

Click here to register for our Zoom Luncheon. We start on Tuesday, January 24th at 1pm ET/noon CT/11am MT/10am PT.

We'll spend the 1st hour interviewing David. Plus, you'll have the opportunity to ask him your own questions. After that, we'll transition into our nationwide networking where you'll have the chance to tell people about yourself, what you do, deals you're working on, areas where you are looking for deals or partners, or you can ask questions that need answers. We'll have plenty of people on the webinar to help you brainstorm!

Thanks for registering. We'll 'see' you on the webinar on Tuesday, January 24, 2023, starting at 1pm ET/noon CT/11am MT/ 10am PT.

Hey Brian. Contact Ken Moncrieff. He's one of my Gold Inner Circle Members and actively doing deals in Kansas City. I'll DM you his email as BP won't let me post that here.