All Forum Posts by: Danté Belmonte

Make a possible contingency in the contract stating one of the units has to be free and clear of any tenants prior to closing. This puts it on the seller if there are month to month leases or one of the leases expires soon. If one lease expires soon but after closing, have the current owner (seller) give them a notice that he will not be renewing their lease when it expires. You can't just "kick out" a tenant. Remember, these apartments are the tenants homes. They typically need 30-90 day notice to vacate because 1. it is the law and 2. it is the right thing to do as we are still dealing with humans. If the seller is not willing to help then after closing you can try cash for keys, serve them a proper notice if they are month to month or lastly, wait for the next expiration of their lease to come due and give them proper notice that you will not be renewing it. Keep in mind, just because you may serve the proper notice does not mean the tenant will leave. Good chance in todays current state of evictions and with covid, they will be sitting pretty in your unit. Lots of factors to account for to use any of these tactics. I hope this helped and best of luck! 

Great news you are able to acquire seller financing! Start with your local credit unions, regional and local banks. Be upfront about the seller financing part and make sure they are okay with it. Seller will most likely have to take 2nd lien position as the primary lender (bank or credit union) will only make the loan if they are first lien position. Shop around to make sure you are getting the best rate and terms. Again just be up front and ask if they will allow the seller to carry a portion of the loan. DO NOT wait last minute. Good luck! 

Hi Courtney! Once you enter the multi-family space you are right. “Co-brokering” a deal or have a buyer and sellers agent is not common or really doesn’t exist. In a competitive environment like it is today for aquisitions, an offer with a 2nd agent that has to split the commission won’t look good. The listing broker most likely will not try to “sell” your offer to the seller. Also if you have a buyers agent, odds are they will know nothing in particular about the deal. They will know as much as you do. They will continue to go back to the listing broker to get info and it’s like the game telephone every time you have a question about the property or deal. 

Once you get in the multi-family game, you really need to know your stuff and should only lean on brokers for their deal-flow, not let them “sell” you on why you should buy it. You should be savvy enough in this area to make your own decisions for yourself, your company and your investors, if you have them. Your real estate attorney should be the one looking over your shoulder on the legal side to make sure you aren’t being taken advantage of and then your property management company you plan on having should look over your shoulder as well during due diligence. Same with contractors on the physical due diligence part. Multi-family is a different game and you are only as strong as the team supporting you. I hope this helps and good luck on your multifamily journey! 

From what I am seeing on the acquisition side of syndications, CAP rates have compressed even lower causing apartment values to increase. The shortage of lumber and building materials is causing new development prices to increase which directly increases the value of existing multi-family.

As far as operations go, collections are lower but increasing monthly. Some Syndicators have put distributions on hold for a month or maybe a quarter to make sure they have adequate reserves incase things were to get worse (which I agree with). Doing that is smart and is what a skilled asset manager/operator would do.

All in all syndications are still strong and I will continue to push investors to them and we will continue to buy apartment complexes. 

Hi Sandy,

To my knowledge it is more of a lender by lender scenario. Are you talking with a local credit union? It will be different from credit unions, to local banks, to regional banks, agency (5+ units), etc. 

I am in NY and I get financing in North Carolina and I have investors who invest in NY but life in other areas of the country. 

@David Mueller

David, great to meet you! I am one of the top producing investor friendly agents in the market. I am an investor myself as well as I host a REI podcast and local meet up via zoom. I would love to connect!

@Eric Armstrong

hi Eric. I am a Syracuse buy and hold investor. I am also an agent that works with investors as well as I host a monthly REI meet up and real estate podcast. I would love to connect!

@Carolina Holy

Hi Carolina, I am a Syracuse real estate agent and investor. I also host a monthly meet up and real estate podcast. I would love to connect with you and give you some more market insight! Good luck on your RE journey

Hi Josh! I am a local investor friendly real estate agent and local investor myself. I also host a monthly investor meet up and real estate podcast. I would love to connect if you have questions about the Syracuse market!

Hi Josh! I am a local investor friendly real estate agent and local investor myself. I also host a monthly investor meet up and real estate podcast. I would love to connect if you have questions about the syracuse market!