All Forum Posts by: Kyle Souza

@Trevor Finn Thank you Trevor! We are very excited!

@Suraj K. Yes strictly HNW friends and family. We have not and likely will not approach institutions until we get some deals under our belt and build a solid track record.

@Suraj K. New investor but have a lot of institutional acquisitions experience for a large syndicator. Also utilized family connections so I had an advantage there of some nepotism.

@Jacob Sherman We have a partner that is going to sign on off the loan docs in exchange for a piece of the fees or a piece of the GP ups, still negotiating. My assumption was that this was our way to work around using a bridge execution early on, but correct me if I am wrong here.

@Jacob Sherman We are looking at I'd say 10-40 unit deals. Preferably since we are younger sponsors we initially avoid high octane bridge loans, instead vying for capitalizing renovations with equity and a 5-yr fixed rate loan.

@Kenneth Reimer I'm not shocked to hear that. Capital is tight right now given capital markets volatility and bank exposure to faulty loans, especially in the multifamily space. 

Will be interesting to see how 2025 plays out. 10 yr rates are still over 4 and spreads are not coming down quick enough to rescue people who bit off more than they can chew.

Good luck with your MHP, we like that product a lot and have a deal in Central Valley, CA! 

@Kenneth Reimer Very true, all great points and I appreciate the insight.

We are young in our sponsorship days and are quite conservative in our underwriting, I would say UW a renovation at $10k/unit for us is incredibly thin. We also do not use broker assumptions in our underwriting. The more we underwrite and connect with 3rd party managers, the better our proforma Opex assumptions have gotten. Capex we are very conservative given the unpredictability of value-add until you get on site and look under the hood.

We will do our best to find the best possible contractor, thanks!

@Jake Andronico Great to hear, my associate at MG Properties in San Diego went to SB. Reno is a great small market.

Would appreciate a connection on a lender that you like and recommend, I am in contact with some IS brokers in Sac. Let's connect on the phone soon, is the number below your signature the best to reach you?

@Erik Estrada We are looking in the 12-30 unit range. This is derived from the amount of equity we can contribute as the sponsor and the amount of equity we know we can comfortably raise in a 90/10 structure. Using a 60% minimum LTV assumption we are deriving our target PP range.

@Kenneth Reimer Very helpful, thanks Kenneth. My assumption has been DSCR is the main driver, coming from my institutional experience (larger deals) we usually target a 1.2 and over DSCR. Is 1.3 usually what you see with those smaller private sized projects?

We will be sure to be diligent in our capex underwriting, given we are looking for value add deals. We are tending to be more conservative there to protect ourselves from any big misses.