All Forum Posts by: Chase Banta

Here's the structure in our current operating agreement:

Investors get a 6% pref and everything beyond is split 50/50 between investors and sponsor (aside: split is very favorable to sponsor because sponsor brought 75% of capital and personally guaranteed the loan).

Since all original capital has been returned to investors, sale proceeds will be split 50/50 between investors and sponsor.

What I'd like is for the promote to be considered capital gains so it can be invested tax deferred into an Opportunity Zone Fund.

How can I achieve this?

Experience: Co "Junior" GP on 44 unit apartment syndication in Northern California.

Project wouldn't exist with out my partner's 15 years of expertise/experience, so don't want to overstate my role in the project. Bought $6.9M worth of underperforming property with total rent roll of around $26k, did about $600k worth of work, turned over some inherited tenants and stabilized property with current rent roll of $63k. My role probably would be best defined as the property manager. I've handled all the leasing, all the marketing, all the turnover. Also do the bookkeeping. Partner has been boots on the ground running rehab, and has been the financial engineer of the project.

This was my first foray into real estate, and was done entirely remotely from Portland. I am looking to get involved in another project in the Portland metro area.

I'd be interested in a SFH rehab so I can learn soup to nuts (financing, rehab, etc) on a project. I'd also be interested in MF value-add.

Introducing myself to connect, and find opportunities.

Things I bring to the table: Strong financial and technical background, strong PM experience. $300-$500k to deploy, depending on the day.

Note of warning: I underwrite and operate conservatively. I don't need to deploy money, and I don't need to gamble.

What sort of renegotiating leverage do you have that gets you to market?

I believe 2023 rent cap in Portland is around 14%, so if the property is subject to the cap, then you're looking at something like a $77 increase as max allowable. Why would the residents agree to something higher?

If you want leverage, you'll probably need to review the leases, look for violations (people living there who aren't listed, pets, etc) and then go to them with the pitch that you'll update the lease so they can keep doing what they want to do, but it's at market rate, or you'll enforce the lease as drawn up, and they'll be looking at a $77 increase.

Another option is cash for keys.

Another option would be that you can serve a no-fault eviction if you need to do repairs/renovations (look up SB 608 and make sure it applies).

We are refinancing a 36 unit property, and have an appraisal coming up. What sort of things can we do to give ourselves the best chance at hitting the appraisal value we want, outside of the core business function of having signed good leases, having a strong rent roll, cap-ex improvements, etc.

Basically, is there anything we can do to "give ourselves an edge" when it comes to getting an appraisal? Can we package information in a way that is helpful/powerful, or anything like that?

The building's financials and fundamentals are what they are, and we are proud of them, we just want to be able to squeeze every dollar of value out that we can.

Thanks in advance.

Disclaimer: I have a smart partner with bandwidth problems. I am the dumb partner with bandwidth, so I am out asking novice questions.

We purchased a 36 unit property in northern California using a combination of a $4M bridge loan at 7.75% I/O and $2M cash on 12/10/2021. We've recently had 3 broker's opinions of value come in at $8.5M. We've found a refinance loan of $4.975M at 3.4%, but we want to explore what I/O options may be available to us. So far we've been told by one lender that our market is too small, so they aren't interested.

Where would we go/what should we do to shop in volume for what we're looking for?

I've posted in a few places and what I've come to suspect is that our person fills the role of a full-time on-call maintenance man, and point of contact for tenants who haven't adopted online/text communication. He requires full-time management, there's no way we could ever get to a "just collect a check" sort of place with him.

We just purchased a 36 unit apartment complex and are trying to come to an agreement with the existing on-site property manager around what reasonable compensation is. His request is to be paid full time at minimum wage, and to receive free rent ($1,500/mo value). This puts his total compensation at around $48k on a building that will likely bring about $720k gross rents, in time.

Note that his main function will be to act as a maintenance man, and to be on call for the typical needs, and we will be handling everything from an administrative perspective. We are new to this industry, but we just don't see how he can create $48k in value for us, given what we'll require of him.

How reasonable is his request, and what would be a normal compensation package look like for someone in his role?

We have a 36 unit complex in Lake Tahoe, and have a verbal agreement with a company to pay above market rents for a year lease on one of our units, but our only experience in screening and signing tenants is with normal people.

We're looking for some advice from someone who has gone down this path with a company before. Basically, we want to know what we should be requesting from them for screening (e.g., bank account and statements, contact with the person who has authority to sign checks, looking for whoever it is that guarantees liabilities for the company), and how the lease might differ from the standard lease the California Association of Realtors uses.

I have a list of 144 properties that I'd like to pull estimates of value on. As many data points as possible would be nice (e.g. zillow, redfin, realtor, etc).

Is there a place to do something like this for free/cost? The output would preferably be a CSV file 

@Bill Horton

Thanks a lot for the response, this was very helpful in setting my expectations.

One thing that you didn't touch on was any period where there may be free rent. Is this something you're seeing in the Portland market right now? I have someone that negotiated a lease in the Eugene area and it included, I think, 3 months free (or reduced) rent, which is why I am asking.

We are mainly looking in SE between about 60th and the river, south of 84 and north of Powell. Am I correct to assume that we'll be paying (all-in rate) something around 35/SF/YR for spaces that are 1800-3600 SF?