All Forum Posts by: Joe Hughis

@Keir Moorman - Hedge Funds and Pension funds usually buy 8-9 figure real estate portfolios or mortgage notes, or properties.  Those funds typically have acquisition manager who reviews the offering.  You may even be able to find an acquisition director to review your offering. This would be best since those directors would have to give their blessing before it is presented to their respective boards for approval.  Cheers!

Hello Jessica.  Is there a best number to reach you so one of my account executives can reach out to you tomorrow?

@NaDean Bowles yes, to all of that, and more.  You want cost, completion times, absorption rates, realistic projections. That market study should be an objective look at the project. 

@NaDean Bowles - If the area you are looking into is a hot area for development, I would say, first and foremost, work with the seller and your investment group to confirm the viability of development on the land and lock the land up.  You are right, a development project that has both commercial and residential components is a elephant....a very large prehistoric elephant.  But none of the future steps and process means much unless you have the land.  

Now, if the area is more speculative, then I would spend more time making sure you have a solid market study for the area and that the development project is viable from a construction and end goal perspectives.  You will need that market study report to present to your investors and lenders. Your contractor, if experienced with these types of projects, should be able to give you some good rough numbers to work with in your analysis.  

Cheers!

Here is a previous article written on Bigger Pockets about property classification, which you might find useful. I don't agree with everything on it, but it generally provides a good classification background.  https://www.biggerpockets.com/renewsblog/2015/12/0...

@Sumesh Vadassery - Welcome to BP. No, you do not necessarily need to form an LLC or other entity to buy a commercial property (and/or mortgage). If you qualify, you can get a loan and take ownership of the property/mortgage in your own name.

Not sure what you mean by an umbrella insurance?  Those types of insurance policies are available for multiple properties.  However, that is a separate topic all together.  

Cheers!

@Boruch Leivi Bartfield - If your strategy is to renovate the multifamily property and raise the rents right away, the T12 shouldn't really have a significant roll in your plan. This would be a case were past performance should look significantly different than future results (if your plan has big changes).

If you have knowledge of where average income and expenses are for like properties around the area (which would be advisable to have if you are planning on investing there) you should be able to guestimate fairly closely a proforma without getting data from the current owners. 

You can't really blame the brokers on their push back.  They want to deal with buyers who are ready to go and they don't want to disrespect their clients privacy by dispersing the property financials before a potential buyer is vetted.    

@Neil Hohmann - The parameters you outlined sounds reasonable.  I may be able to get you more information.  Please feel free to DM or call me at the number included below.  Thanks!

@Pauline Jones - Houston is a growing market but it can be a bit tricky for apartment ownership.  The city can be divided into sub-regions.  A significant difference in price, cap rates, rental rates, vacancy rates,  etc. can literally be separated by a few streets in some sub-regions.  So, it would be unwise to depend heavily on general info about Houston or simply doing a 2-5 mile comp. evaluation.  

@Account Closed I have worked with many clients who were primarily Multi-Family owners. Some own thousands of units in Southern California. May of the folks I worked with who own large numbers of units, started in the 80's. A couple common patterns I realized is that those owners typically bought properties that were the type of property (and in locations) that they wanted to hold for a while. They put in large down payments, kept the debt low, and conservatively borrowed against it when they saw another MF property they liked become available...often times those other properties would be relatively close to their existing properties. They may not have gotten the lowest price at time or had the lowest interest rate but with low LTV's, their properties were always profitable. They steadily followed this process and now have a solid real estate empire.