All Forum Posts by: Eric Johnson

@Leigh Ann Voegler it's usually in the form of lower cap rates = higher asset class. an industrial asset with a 5.0% cap is going to operate difference and be in a different location than an industrial asset with a 10.00% cap, for example.

all I can say is dang homie, 3 weeks in and you criticizing yourself? Chill man. 

What is the asset type/class? B class office? C+ class industrial?

Hi Ciani, what exactly are you looking for? An individual to invest with you and offer you a note (a true private lender) or a professional real estate lending shop that will offer you terms on your deal? 

That would help point you in the right direction

How investor friendly? As in a bank that frequently funds investment properties with GSE sponsored cash or asset-based commercial loans? 

Hey Grayhamme, it's absolutely networking. Start contacting real estate agents too. You can ask them about investors they work with & you can inform them you're looking to acquire assets they have may have interest. They might question your motive, however, you can combat that by offering to provide a professional offering memorandum. 

If I was looking at a potential investment posed to me by a syndicator, I would absolutely be looking at clarity of presentation, any highlights of key information of the deal, the value proposition, & how I'm gonna get my $$ back. If you can communicate that clearly, you can network with just about anyone. Even local healthcare magazines that mail to doctors or something. "passive investment opportunities". 

good luck

Hi Mike, 

Sounds like the other posters on this thread are on the right track. Navigating the commercial capital stack is tough, but you have some good advantages. You should be able to score a non-recourse in that territory of 3.5-4.25% (depending on numerous other factors). 

Good luck!

@Ross Bowman

Ben Leybovich has a good point. But I think I’ll tweak it a tad. What you’re seeing is people who have access to distribution. That is what the Internet and social media platforms are.

The ease of access and low barrier to entry, make it easier for more people to distribute their content to a base audience.

Therefore, it seems like there are many gurus now, but holistically, there aren’t that many, you’re just being targeted in that niche and they are paying for the distribution. Back in the day, you can argue that there were actually more “gurus” but less mass dostribution channels

Jason, 

I am also in Chicago. Rehab loans are typically 80%-90% acquisition (depends on experience, 3 deals done in last 36 months is helpful to get increased leverage) & 100% construction. Construction funds are heldback at closing and are disbursed as borrowers complete work and request reimbursement.

They are 12mo interest only loans paid monthly. 9.25-10.00% (per annum) is a good rate to start with for estimations. Most transactions are 2-3 points. No prepayment penalty.

To get a loan, you will need prove you have a solid deal (the profit margin is great enough) & that you have enough cash to close.

Hi Tina, there is going to be plenty to talk about on the finance side. In multifamily financing, there are several tiers of capital & picking which one best fits your scenario can be an arduous process. Happy to assist in that department & offer some guidance.