All Forum Posts by: Joseph Cacciapaglia

San Antonio is a very tough market to find reliable contractors willing to work with investors at prices that make sense. This was one of the issues I ran into when I moved to this market back in 2018. One thing that makes this market different from many others I've worked in, is that a lot of the better contractors keep a relatively small footprint here. Do you know what part of town you're planning to target, and also what your typical deal might look like?

I grew up in a home with a portable dishwasher. We never had any problems with it, but I could imagine if the sink were clogged that it could overflow. I haven't run into this issue at all since moving to San Antonio, probably because we have mostly newer properties here. I Hadn't even thought of portable dishwashers in years. I think I would express my concerns with the tenant, and maybe put it in writing that they understand any damage caused by it is their responsibility. Maybe add it to your future leases.

It is an LLC. There is an operating agreement. All decisions are made through an online voting process. We typically engage 3rd party managers to run the properties, and delegate some level of decision making to them. When we sell the property, we can vote to delegate a single member to have signing authority, but they sign on behalf of the DAO, or with some of the DAO's, the platform that created the DAO is the delegated signatory.

I don't believe either of these are the real issue. It's very clear who has signing authority for the DAO's (we have had no problem with signatures for sales of properties or for evictions, as two examples), as well as who is the registered agent to receive notice of a foreclosure. Both of these issues DAO's have in common with other multimember LLCs. Even with non recourse debt, lenders are still looking for a person to sign the bad boy carveouts, hence the need for a 3rd party guarantor.

I'm invested in about 40 properties through 40 separate DAOs. Many of the properties are owned free and clear by the DAOs, but it's been challenging finding a lender who will work with this structure without a third party guarantor. Has anyone had any success finding a lender who would work with the DAO ownership structure? In many cases even a 50% LTV loan would be welcome. In all cases there is no single owner with more than 15% ownership in any one of the DAOs, and guarantees are available from the DAO only.

If anyone is able to solve this problem, there is a ton of financing opportunity in this space.

Paying for the blue checkmark on X for less than $10 a month made a huge difference for me. I was already getting a lot of business from X, but it made a noticeable difference.

One question I like to ask is if the manager is able to handle different rental strategies. If the property doesn't work for long term rental, can they do rent by the room or co-living? Can they manage a short term rental for me? Here in San Antonio, it's hard to find a manager that will service all types of residential investments. If I have to change managers to change strategies, that could be a problem for me.

Are you looking for a specific market, or are you asking which markets are the best? Also, when you say best, what is a good deal for you? Is cash flow or appreciation more important to you? Here in San Antonio, most of our new construction multifamily is on the east side of town. We don't have a lot of other options, for that particular product. At the moment I don't believe any are offering interest rate incentives, but that changes all the time.

Are you looking for a specific market, or are you asking which markets are the best? Also, when you say best, what is a good deal for you? Is cash flow or appreciation more important to you? Here in San Antonio, most of our new construction multifamily is on the east side of town. We don't have a lot of other options, for that particular product. At the moment I don't believe any are offering interest rate incentives, but that changes all the time.

It depends on what's needed. There are some things, like flooring, paint, roofing, that I'll use some internal estimates for. For others, I'll want a contractor to provide numbers before pulling the trigger.