All Forum Posts by: Chris Shepard

I found the answer... here is the model for everyone who would like it:

https://www.asimplemodel.com/insights/determine-the-proceeds...

We use Michael Blanks Syndicated Deal Analyzer.  I understand the underwriting model has been invented.

We have a property that is listed for sale and all the cashflows that have been paid to investors and the waterfalls that are from our PPM.

How do you figure out the exact amount that goes to an investor and the exact amount that get's paid to a sponsor based on the waterfall levels based on the cashflows that have already occurred?

If it is so simple, would you mind walking me through it... I have all the data in the spreadsheet above and the waterfall structure in the post.

Thanks!

Hey guys, I work with Trent and we are trying to model what the returns would look like if we sold at a certain price.

The waterfall from our PPM is:

Cash Flow

Actions

Tier	Template	Description
1	Preferred Return	7% Annual Preferred Return to contributing members
2	Split	80% Upside to Class A and 20% Upside to Class B thereafter

Capital Event

Actions

Tier	Template	Description
1	Return of Capital	Return of Capital to contributing members
2	Catch Up	7% Catch Up to Class B
3	Split	80% Upside to Class B and 20% Upside to Class A up to 20% IRR for the Investment overall
4	Split	50% Upside to Class A and 50% Upside to Class B thereafter

Attached are all the cashflows for the deal.  We are working on creating a sheet for one of our employees to fill out so that we can look at different scenarios... the last cashflow is based on a projected sale with 6% of closing costs taken out.

What we need is help to identify the waterfall split amounts and what each investor would be returned and what their individual IRR is going to be.

https://docs.google.com/spreadsheets/d/1SE0s0FecxlGMKcLgKc6dNRJF8nwaCU_8iMrCbTD7vV4/edit?usp=sharing


Thanks for your responses!

Hey All, I'm looking for a site that can generate multifamily listings in Jacksonville and Portland. Where do you get your listings? Thanks!

Janell that is exactly what I am looking for!!!  I have already reached out to Joseph Allen, sounds like Andrew Pokrzywinski is the guy to connect with!

Cheers!!!

Hi all,

I am wondering if anyone has a real estate agent recommendation in Jacksonville FL for Short Term Rentals.

Has anyone bought an STR in Jacksonville? Who'd you use?

Cheers!

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $6,300,000
Cash invested: $2,000,000

Contributors:
AJ Shepard

30 Unit Townhome Complex Class C Value Add Buy and Hold. Should be a 20% IRR.

How did you find this deal and how did you negotiate it?

We bought it from a seller who we recently did a deal with 10 months before hand.

How did you finance this deal?

Freddie Mac Small Balance Loan

How did you add value to the deal?

Modernizing Property Management, Online Payments Etc, Raising Rents, and Billing back utilities

What was the outcome?

We've increased NOI by about 15% so far.

Hey all,

Thanks for this information on Jacksonville.  I am coming to visit on the 14th and 15th and trying to get a good idea of the market and make some connections for multifamily purchases.  Does anyone know a good multifamily broker?  We are looking in the 20-100 unit range between 2MM-15MM.  Also, if anyone wants to meet up, I would love to chat, I will be at Wicked Barley at 7pm on Monday the 14th.  I'll buy you a beer!

Cheers!

@Suzie Remilien Thanks for the info Suzie!  I am also diving into the Jacksonville Market and am coming out to visit on the 14th and 15th of November.  If you're out there or if you know anyone I should connect with regarding multifamily I'd love to connect!

Cheers,

Chris Shepard

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $945,000
Cash invested: $345,000

I 1031ed a home that I purchased in college into this 5 plex. My plan is to add value to the property and get a freddie mac small balance loan once I've increased the NOI by implementing rubs and raising rents.

I need to get the property value up to 1.33m so that I can get a 1m loan at 75% ltv so I need to figure out how to do this. Wish me luck!

What made you interested in investing in this type of deal?

1031 exchange

How did you find this deal and how did you negotiate it?

multifamily broker

How did you finance this deal?

credit union, it was a nightmare

I had a lot of difficulties getting a loan on this property since the loan is less than 1m.

How did you add value to the deal?

Upon purchase, I immediately sent RUBS notices and raised rents to all 5 units the maximum that was allowed by the city of Portland. Once these increases go into effect the property value will increase by (5 units x $100/m of utilities and 5 units x $95/m of rent increases which amounts to a $11,750 NOI increase) roughly $250,000 at a 4.5% cap rate.

What was the outcome?

it's pending

Lessons learned? Challenges?

going with an unknown lender is always a bad idea... I should have used the guys I knew would close the deal.