All Forum Posts by: Drew Taylor

Hi Erica, My friend Mandy has a regular meetup in the area as well. 

https://www.biggerpockets.com/users/MandyMac8

Got it. Thanks again. And thanks @Natalie Kolodij as well.

Thanks, @Dave Foster. I think this is a different question, but can I 1031 exchange my interest in the JV upon sale?

Here are a couple of groups with multiple conferences I'm considering. I haven't attended events from either, so can' t advise if they are pitch heavy or not.

https://realinsightevents.com/

https://connectconferences.com/

I am a partner in a JV that purchased an apartment building in a hot market (or is that all of them?) a year ago. Much hard work went into improve the property, replace tenants that couldn't keep up with the rent and overcome inevitable surprises. We planned a 2-5 year hold, but are considering a sale if we can meet our returns early.

If all partners agree, can the JV 1031 exchange from this property to another, or do the individuals each 1031 into another "like" investment?

@Matthew Shay 50% expenses is a good starting point for preliminary analysis, regardless of size. As the others have noted, you'll want more precision in your estimate of each expense as your working toward the offer. 

Justin, You have several questions, but I'll start with the first. Investor payments will depend on your business plan for the property and defines your criteria for the property.

If you are looking to purchase a property strictly for cashflow, you would look for something stabilized (low vacancy and delinquency) and profitable. These would provide predictable income which could be paid out as distributions (quarterly or other) year to year.

If you are looking for a property that has the potential for increased value you may not have sufficient profit day 1 for distributions. The most common ways to increase the value of an apartment are increasing rents in the event they are below market or improving inefficient management, or both. Both will increase the net operating income of the property which will increase its value, and you could sell or refinance to capture that increase.

A couple examples:

I have a 40 unit property purchased with a few partners last year that had below market rents and inefficient management. We are in the process of renovating the units, fixing the deferred maintenance and making some improvements. We didn’t plan for significant distributions for the first two years as we do all this work, reduce vacancy and get rents up to current market. We will consider sale (very hot market) or refinance and hold when done with the work.

I am a passive investor in an apartment syndication which cashflows to start and has some opportunity for increased value. I receive quarterly distributions while the operator works to unlock value from increasing efficiency and make modest rent increases. The business plan for this project is to sell year 5 at the increased value.

@Tyler Mundy Lot's of good guidance here.  Get educated and really confident in the terms and concepts of MFI so you can build a team to invest in your target market. A no money down multifamily investment is rare, but possible.  Private lender terms for a second mortgage on your investment may be a challenge.  Another option is to develop a great relationship with a local bank who has a commercial department. They may be open to low money down financing of your investment.  

Maurice, You should make relationships with local banks in your target market that have a commercial loan practice. I know folks that got great terms with a local just by taking the time to do so.  Freddie also has options with lighter requirements for small to midsize properties.