All Forum Posts by: Cole Baker

That's exactly what I was trying to get at! Thank you for the detailed response. 

Hello BP Family!

I am curious, if an asset has a stabilized (above 85%) occupancy, and when purchasing it, the business plan incorporates CapEx for the interiors and exterior as part of a value-add business plan for a 100+ unit apartment, would it be likely to receive longer term agency loan? Or is a bridge loan the only way to go for CapEx on a project?

Hello BP Nation!

Thank you for your responses the last few days!

My next question, how do I build lasting Lender Relationships? What are they looking for? Are there nuances to the relationship that I should be aware of?

Thank you!

 That makes sense, I have been reaching out for guarantors to partner with in general. 

 Thank you for the info Scott! I have none of that prepared. I am simply beginning my journey on multifamily and asking questions where I can to learn more. 

 Great question, the property is a 127 Unit property. 

BP Nation! Looking for you to come through again!

I was given an off market deal in the Houston, TX MSA. Based off of underwriting, the deal pencils. What are the implications of sending in an LOI and going under contract on the properties? What are the right reasons to back out, and what are bad reasons to back out?

Thank you for you help and I am looking forward to the answers!

Hey Anderson! Thank you for taking the time to answer and for the graphic!

Can you explain further your calculation for market price? I do not understand the "old supply x demand" reference. 

Secondly, what do you mean by unbalanced supply? Do you mean that there is low vacancy and high construction? 

It looks like you are investing in areas that are potentially in hyper-supply currently. What you are saying is that the markets above have a fantastic combination of job growth and population growth. What we are seeing in Dallas is and increase in vacancy, and an incredible increase in construction of units. Which was told to me to be a red flag when looking at a market. Increasing vacancy and increasing new construction would mean there is supply is out pacing demand. Meaning there will be decreased rents and therefore decreased value in properties. This doesn't seem good, and yet investors still flock to these places. Why do investors continue to flock to these places? 

I am beginning my MF journey, I am currently analyzing markets to determine which one to jump into. 

One question that came to mind, is there a strategy or a reason to invest in a market that is currently in the hyper-supply phase? Or would you all recommend staying away from markets that are in hyper-supply?