All Forum Posts by: Garrett White

@Jade Walls following

Does anyone have an example or a template of a Welcome Letter they send to their residents explaining who the new owners are, who to write checks to, etc? 

Any help would be greatly appreciated! 

@Monisha Nabar One model to consider is the passive investor who brings the money gets all of the net rental cash flow until their initial capital is returned and then the split goes to 50/50 for remaining cash flow and sales proceeds

Awesome, thanks for your insight man. The seller got this loan in Feb of last year and is adamant about assuming. It appears what you’re saying is if the purchase price is $3.2m and balance is $2m, then I would have to come up with $1.2m. Am I understanding this correctly?

I'm currently looking a multifamily deal where the seller is adamant about the buyer assuming their loan. The purchase price is $3.2m and the balance on the loan is $2m. Does anyone have experience assuming a Freddie Mac loan that can give me some insight as to how I would underwrite this into the deal? Are there any points I would Pay to assume the loan? Would I need to come up with $1.2m in Equity for the difference in this case? Would the lender allow the buyer to have supplemental loans up to 75% LTV? Any help would be greatly appreciated - the deal has me curious!

As Dan Handford mentioned, Reonomy is a great tool if you are looking to quickly dig into an LLC to find the Principal’s contact numbers. The software also allows you to sort properties by age, size, location, maturity date of loan, etc.

When people use the expense ratio, is it based on a percentage of gross potential income, gross potential income + other income, net rental income (after vacancies/Concessions/Bad Debt), or net total income (after vacancies/Concessions/bad Debt + other Income)?

My partners and I like to include Team Bios that demonstrate we have a team in place with experience and the ability to perform. In addition, we provide a list of similar properties we have closed in the past. Finally, if possibly, we attach Proof of Funds to the end of our LOI.

My partners and I are looking for a qualified PM company to manage a small to medium sized B/C Class Apartment in the Charlotte, NC area. Any recommendations for a local PM Company that manages smaller sized apartments (10-50 units)? Thanks so much!

As Matt stated, I would focus a lot on the 5/7/10 term option. I am accounting for a correction in my underwriting. Therefore, I’d be willing to pay a little higher interest rate to secure a 10 year vs 5 year. In addition, if you plan to refinance, I’d be sure to look at prepayment penalties.