All Forum Posts by: Jordan Decuir

James Kojo , your point about IRR makes sense. My question is more from the perspective of preparing and communicating offers to sellers. How did you break into the multi-family space?

Todd Dexheimer Do you plan on syndicating some “heavy-lift” hurricane-impacted apartment deals here in houston?

Fred Heller I assume you would generally consider west houston to be a “less-trendy” area trading at 6-8 cap rates? Is that the range you’re seeing for A Class to C Class?

Percy N. How about C Class in west houston and spring branch north of I10?

Originally posted by @Nick Romano:

@Jordan Decuir wouldn't a cash-out refi mean giving up the low rate in place?

Potentially. But Given today's low-rate environment, I would refi over a longer term (amortized over thirty years) pull out a substantial amount of cash, the longer amortization period would keep your payments low and you would still get a good rate (probably nowhere near the rate you are at now on the 15-year amortization though) and go reinvest in some other property(ies). The IRR on your invested cash should significantly surpass the rate that you will be paying on the new loan. I don't know your situation of course, but that's what i would do. You are in an enviable position, great job!

I wouldn’t accelerate the paydown since you already have such a low rate in place. I also wouldn’t sell because you point significant potential for increased value based on the local market. Given what you said, I would consider doing a cash-out refi to tap into that cash

I am looking at some apartment complexes as potential investments, what cap rates are we seeing in the Houston market? (Class A, B, and C)

I haven't read the posting at the link you provided, nor have I done this or any wholesaling either, but if this would be done by the wholesaler taking some form of equity position in the property, in lieu of collecting a wholesale fee, then I would think that this would be addressed in the deed showing the form of ownership as well as identifying the owners of the property (as well as some other partnership agreements/documents detailing ownership structure and management responsibilities). I think the best route would be to take some time and find a good real estate lawyer and ask them about how to structure something like this. I think it could be a great idea and a good wealth-building strategy to get an equity stake as opposed to a one-time fee when wholesaling, at least on deals where it makes sense to do so.

Fred Heller Please PM me I am interested in your recommended HVAC contractors

Joe Moore Have you hired this out yet?