All Forum Posts by: Kent Leach

I'm looking forward to this meeting!  Hope we pack the room.

@Don Konipol We plan to use 75% LTV agency debt on one property and a bridge to agency on the other property which has the vacancy issue. We will not have to personally guarantee the debt. My partners have multiple lending relationships that they have used to purchase over 4,000 doors. I'm certainly benefitting from their experience.

@David Acosta  Sure.  This was an off market deal sourced through a property management company.  The properties are family owned and managed.  There is a an 11% combined vacancy issue.  Rents are 20-25% below what we could ask once the units receive a $2,000 refresh.  Total capex is $3,450 per door.  RUBS will be implemented as well over a 3 year period.  We will implement a 10% rent raise year 2 from $563 to $619 leaving us still conservatively below market rent. The PM company has implemented this exact plan in similar secondary markets

So the business plan includes everything above with exterior upgrades as well, filling vacancies, improved management and enforcement of policies. This 5 year plan drives the NOI from 472k Trailing to 811k by year 5.

Average annual COC is 9%. IRR 16.75% and average annual return 19.44% at a cap rate 1 point higher than current.

@Davit Gharibyan I just signed an engagement with a highly recommended attorney in Milwaukee, WI.  PM me if you would like his contact info.  He will be handling the PA for our 244 unit purchase and can coordinate with attorneys in any market.

I really like for at least 3 different sets of eyes to underwrite a deal from scratch without any prior communication beforehand.

I have an accepted NOI and just signed the engagement letter for attorney to start putting together PA to purchase 2 properties in Lawton Oklahoma totaling 244 units. I've enjoyed reading the posts of many of you as you take down deals and decided to try and document as much of the process as I'm able to for the benefit of others who are trying to accomplish the same goals.

We have a purchase price of $7.65 M and will be raising 3.25M from verified accredited investors through a 506c.  I'm sure it will be a long, tiring process with sleepless nights and long days.  I hope to bring some value to the board during this process and look forward to many conversations.

I applaud you for getting out there and jumping in.  You should take this deal to a partner who has done deals before and ask for 10% of the GP for sourcing the deal.  Then learn as much as you can from that partner.  As a member of the GP, you will receive 10% of the 70/30 split.  And the GP gets 30% not 70%.  There's a whole lot to learn.  Much more than you can get from Matt's book.

@Dominic Dilello I have used The syndicated deal analyzer by @Michael Blank. It's a great tool and will help you analyze deals of all sizes. I especially like it's ability to show what each general partner receives for their role in the deal.

@Bernard Sanga I'm a physical therapist as well. On a different note, take time to build relationships with physicians that you receive referrals from. They make excellent partners and many of them are looking for alternative investments as well but are limited in time.

@Justin G. I've used it for almost a year now and I am not an excel pro by any means. @Michael Blank has created an excellent tool for syndicators. I especially like the ability to see how the GP is split up and how much each partner can earn from the deal.