All Forum Posts by: Charles Seaman

@William Coet Unfortunately, there's no black and white answer.  As a syndicator, I can say that raising capital has become much more challenging since 2022, so many deals have closed in the last two (2) years that aren't fully funded and that are continuing to raise capital after the closing.

There's likely truth to the money being raised going towards reserves, which is a very important part of any syndication deal (running out of money is one of the big reasons why syndication deals don't go well).  However, those reserves are often most needed in the first year and not having sufficient reserves can put a deal in a bad position and that's where additional risk is created.  Insufficient reserves result in vendor bills piling up, value-add strategies running behind schedule, and returns being reduced, so it's important to have a clear picture about how well capitalized or undercapitalized a deal is so that you can truly assess the risk.

@Austin Carr I don't know of any local groups who analyze deals in person, but I host a free session each Saturday at 4:00 P.M. EDT that involves underwriting a single multifamily deal each time.  I'd be glad to send you the registration link if this might be helpful for you.

@Soup Nikk We bought four (4) deals in the first half of 2022 with adjustable rate bridge loans and those deals are in similar positions with suspended distributions because of the increased interest rates.  We're still doing deals, but we're only looking at deals with long-term, fixed rate debt.  We find that deals with attractive loan assumptions are the best ones out there right now.  Prices still need to drop a lot before new financing is a viable option in many cases.

@Soup Nikk As a syndicator myself, I can say that the scenario you described is common for deals that have adjustable rate mortgages (or funds that are largely invested in deals that have adjustable rate mortgages).  Most deals that were purchased with adjustable rate mortgages in the last two (2) years are experiencing issues with debt service.

@Pete Tychsen Speak with @Cristian Rocael Carrillo.  He can help you.

@Jessica Lontayo Pace is a well known figure, however he specializes in subject to deals and isn't as prominent in the multifamily space.  Are you looking to acquire smaller multifamily properties (less than 50 units) or larger multifamily properties (50+ units)?

@Owen Burton You're welcome

@Owen Burton If a loan is being assumed, there's no negotiation of the loan terms.  Those are already set and will remain the same.  You can negotiate the purchase price.  Negotiating the purchase price doesn't necessarily impact the loan amount in this instance.

@Sadaf Mik I took courses with RE Mentor in 2017 and 2018.  The experience was good.  It puts everything you need to know in a clearly organized fashion and gives you access to a network of people that you can work with.

@William Coet Check with @Cristian Rocael Carrillo.  He can send you a link to a file with a lot of commonly used terms.