All Forum Posts by: David Acosta

Fannie and Freddie will grant owners of multifamily properties who are "negatively affected by the coronavirus national emergency" forbearance of mortgage payments... as long as they don't evict renters who are unable to pay their rent because of the coronavirus impact.  

Curious what the guidelines or data requirements will be. 

https://www.fhfa.gov/Media/Pub...

Hi, All --

We hope you, your family, and loved ones are healthy and safe in light of COVID-19. Given the recent developments, we will be pushing back this month's event to Thursday, April 30th at 6 PM. Looking forward to connecting then!

Stay well!
David

I would increase your reserves to include additional months of operating expenses.  Also, take a look at your tenant demographic and evaluate what industry they're in -- what is the likelihood of an increased vacancy or leasing period if your target residents are employed in sectors most likely to see hourly cuts?  

If the rehab is not immediate, consider conserving cash by postponing these items if possible.  

If the deal still pencils after adjusting your numbers it sounds like you're okay.  As mentioned above, if the numbers come out just mediocre, it may be worth pulling out due to uncertainty.  Where are you in the inspection process - have you removed all contingencies?  
 

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Congrats, @Daniel Krueger.  Looking forward to following along!

I agree with much of what has already been stated above.  A sub-syndicate, or a "sidecar" seems to be what you're looking for.  Your fund (which you have equity in) would invest in the syndication as an LP.  Your active role with the other sponsors, and ability to place capital, would give you the equity on the GP side.

Legally, there are added layers and components that would have to be set up correctly with the SEC.  Primarily, setting up and structuring your fund.  Your main push back here will be, why invest in your fund instead of the syndication directly.  Ideally, you'll be providing them an opportunity they wouldn't otherwise have access to.

Best of luck moving this forward!  Sounds like you have a great opportunity. 

Hey @Tim Bergstrom, not sure if you've made any progress on this - we're operating in nearby Lexington and have vetted a few deals in the Louisville market.  I think you're on the right track in terms of it's proximity to other MSA's.  Cincinnati, Indianapolis, and Lexington are all with in a fairly close distance which could help with scale.  

I've found that Louisville offers some nice pockets.  We're in the larger multifamily space, but regardless location is pretty universal.  I'd keep an eye out for future development and path of progress plays.  As a due diligence footnote - a few submarkets are prone to severe flooding.

Nearby Frankfort (state capital) is seeing growth.  @James Wilcox is a really great resource in these areas as well. 

Best of luck!

I second @Mike Dymski's comments above. While Cash on Cash is a useful metric, IRR will round out the picture if you're holding the investment for longer than a year.

Hey, @David Squiller - a good PM will help point you in the right direction locally once you have the MSA picked out.  When considering location, I would keep the big picture in mind and look for areas that you can see yourself scaling in, opposed to just a one off transaction.  Best of luck!    

Hey, @Matthew Shaw - Thanks for the feedback here.  Much appreciated and we'll certainly consider those pros and cons.  The reduced footprint and noise level of the minisplit, while providing an increased efficiency are certainly great benefits.  Thanks again for this insight and recommendation.