All Forum Posts by: Juan Vargas

@Omar Khan has a very detailed and advanced spreadsheet that he created. He can probably help you analyze any deal you come across. 

@Krishna Chava, I paid her $15/ hr as needed and never paid her a %. 

She visits the property (very close to the other) 10-20 times a week. But a lot of the work she does is over the phone/ Internet. 

If you are in the 55-60+ range, you could have an on-site manager who also usually brings along their own maintenance guy and/ or leasing agent.

If it’s smaller than that, you’re probably best off if you have a part-time property manger. In one of my properties, I have a part-time manager that works full time at a larger property and works with mine as needed. She also uses the maintenance guy from the larger property to do necessary repairs at mine. 

I pay her hourly as needed. 

Could be an option for you. 

@Brianna Jackson, where is the property located?  I can recommend a bank but it all depends on where this property is located as the bank I know (and have relationship with) is in the Houston area. PM me if you'd like the details. Thanks. 

@Brianna Jackson Since this is a 7 unit property, this is considered a commercial property and you won't be able to get a 203k loan on it. Your best bet is to get a bank loan, most likely recourse. As far you living on the property while you rehab it, you'd have to get with your bank on that. I haven't heard of such products for that though. 

@Account Closed, I agree with your post if you are trying to do this on your own without any prior experience or knowledge. Most people hear all the success stories out there from experienced syndicators and want follow their path right away.

Chances are you will NOT be able to structure a syndication as your first deal anyway because most people don't have ALL the requirements to get a deal done - TRUE deal, broker relationships, larger multifamily experience, track record, net worth, equity, liquidity, agency loan experience, etc. 

UNLESS you bring something of VALUE - (see above) and you partner with an experienced partner/ sponsor and leverage him where he oversees your steps beginning to end. After all it'll be his deal as well anyway and he'll want to make sure to do his best. 

On the mentor/ guru note. I think this is a way you really can get into a deal if you are lacking on any key area. That's the whole point of these programs - to bring you the remaining necessary key pieces to close a deal. I'm not affiliated with any mentor program but I've known many successful syndicators who started with little experience and got into the game. Again, but you have to bring SOMETHING to the table.   

I would also add that you should look at what the market (nearby competitors) is doing so that you know not to under/over improve. Some upgrades/ amenities work great in some markets but they might be a waste in others. 

@Dan Handford and @Ryan McGlasson, the experience comes into play when trying to qualify for agency debt (usually Fannie Mae/ Freddie Mac). If you have not done a loan with either it will be more difficult to qualify even if your sponsorship team satisfies the net worth/ liquidity requirements and even if you have a good business plan with a good PM managing the project. I don't think the $7.5M min is even a requirement as there are projects funded that are less than that loan amount but agency experience is still required. 

@Michael Le, I think what Bill meant to say was that if only his family member was investing in the deal and providing the net worth and liquidity. 

@Dan Handford, yes I agree with you in that there are several regional and conventional banks that will give you a loan (recourse) with limited experience but usually only IF you can provide a solid business plan and will be using an experienced PM but most still need to see your balance sheet. 

I believe @Ryan McGlasson was focusing more towards agency debt since he mentioned words like non-recourse and loan amount of over $1M.