All Forum Posts by: Karl Krauskopf

Bold? I'd use the word "telling." When someone operates by pitching an investment on here it tells me that they have no compliance department, no legal, no offering documents, no care to evaluate the suitability of potential investors, no disclosures, no financials, are not registered and so on. They have a story, they might have done something in real estate before and they'd like someone's money. Not gonna end well.

I predict there will be criminal and SEC civil prosecutions of some of these syndicators. The combination of high interest and declining rents is going to cause some of their existing book to zero out.

passionate generalization

Wenatchee is a total under the radar home run market. Unless Melanie knows this market I would just take her comments like you said a big generalization.. I predict over the next 25 years that area will be a huge winner for RE .. I mean look at what happened in Bend Or. and Wenatchee has 5X the potential of Bend.. other than Bend has a better ski mountain.

I'm right there with you. Milken Institute's 2024 TPC report came out and Wenatchee bumped up from rank 13 to 8 with a primary driving factor of broadening high speed internet to larger customer base at lower rates. Plus the obvious infrastructure investments, population and job growth.

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Quote from @Melanie P.:

Quote from @Karl Krauskopf:

Quote from @Linda Mejia:

Currently raising for a multi fam project in seattle, WA.

Bold - not many others operate here. Happy to learn more

passionate generalization

1 Vote

@Scott Trench currently raising on a 33-unit existing townhome community in Central WA's city of Wenatchee. I am operating a 30-unit apartment in the city already.

Base case scenario is straightforward renovation, add class A amenity package, improve NOI and resell as a single asset.

I will be focused, however, on converting the townhomes into condominiums and selling individually to homeowners. We'll have a for sale product that is 15-22% cheaper than what's being sold and on market with the same finishes.

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Quote from @Linda Mejia:

Currently raising for a multi fam project in seattle, WA.

Bold - not many others operate here. Happy to learn more

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Quote from @Bjorn Ahlblad:

Congrats on your good work! This property is 3 hours sw of Seattle Wa. We bought it in 2017.

Aberdeen? Centralia? Olympia? We locals know 3 hrs sw of Seattle could mean just past Tacoma on a Friday afternoon in the summertime haha.

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Chicago, Illinois

@Manosij Majumdar we love Victoria. We own a Short Term Rental across the Juan de Fuca on the waterfront in downtown Port Angeles.

From my understanding, Vancouver BC is even more expensive than Seattle to buy and develop. Moreover, debt is not as straightforward / long term.

I'd encourage you to consider investments in the Seattle area; although, you may want to reconsider the Mixed Use and Hotel asset type. Retail, though has been performing exceptionally well nationwide right now is still lagging in the Seattle region. Office, we all know is still struggling.

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@Keng Fong , I live in and invest in Seattle. My question to you is if they are paying now, why bother evicting them? Placing a new tenant will not get you the bad debt back.

I would encourage you to get the existing tenant on a new lease that clearly spells out either the base rent + repayment plan, or better yet, the new base rent that should get you to market-based rent. It sounds like this is a single unit - in the new lease require the tenant to transfer utilities into their name and have them pay for it.

2 Votes

Seattle, Washington

Quote from @Amanda Dallman:

@Karl Krauskopf Have you thought about doing any condo conversions in Wenatchee? Looking at some real estate stats, there a big need.

You must've read my OM's! Yes, working on two right now... a 6-unit and 33-unit cottage and townhome conversion, respectively.

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Quote from @Steve Vaughan:

Quote from @Karl Krauskopf:

I'm also investing in Wenatchee which is much more cash flow friendly:

> 30-unit apartment bought for $4.2m and renting for $38k/month

> 33-unit townhome community closing this April for $6.3m and will rent for $70k/month

Investing in RE is a legacy and the ability to show my kids what we are doing holds just as much weight as the rent checks we net.

Nice! I also had a few small commercial apts here for cash-flow. Mine were 7-10 units owned individually by tired landlords that sold to me off-market with seller-financing. How do you finance yours, Karl? I sold 2 in '22 to your area syndications with seller-financing for similar gross/price ratios.

As you get smaller, cashflow and 1%ers get more difficult. I sold for instance a duplex for $475k that rented for $3k last year. Decent houses are .5%ers.

Here you have to watch your water and sewer expenses. Power is cheap but w/s definitely is not. Together they will be about $120/mo per unit.

I'd love a few cashflow heavy seller financing deals; however, it's been purchase + rehab loans on 5-10 year fixed debt. Evergreen Court is nicely stabilized and Eastmont Townhomes will be a cash cow after we're done with it

1 Vote

Seattle, Washington

Late to the game here - I own a 30-unit in Wenatchee. The Evergreen Court Apartments. A gem of a garden style multifamily. Primarily operating it as a LTR right now.

Buying another 33-unit all townhome community with substantial upside by converting unfinished basements from 2/1.5 to 3/2.25 and 4/2.25 townhomes, adding Class A amenities, etc...

We love how lucrative the market there is for us.

1 Vote

All Forum Posts by: Karl Krauskopf

Karl Krauskopf has started 4 posts and replied 81 times.

Post: Anyone Raising a Single-Asset Multifamily Syndication or Know of One?

Post: Anyone Raising a Single-Asset Multifamily Syndication or Know of One?

Post: Anyone Raising a Single-Asset Multifamily Syndication or Know of One?

Post: Anyone Raising a Single-Asset Multifamily Syndication or Know of One?

Post: 6 months into value-add 13-unit project!

Post: Hotels and Hybrids off the Coast of Canada

Post: What are the steps of evicting a tenant.

Post: Opportunity in Wenatchee, WA

Post: Hello from Seattle! Looking to build cash flow from long-term rentals

Post: Opportunity in Wenatchee, WA