All Forum Posts by: Lee Gagnon

By affordable housing, I mean HUD and USDA multifamily projects with HAP & RA contracts/agreements. They are deed restricted properties ensuring the housing remains affordable for low income and elderly tenants.

Looking to connect with a well-funded private lender for affordable housing acquisitions. The ideal partner will be willing to take a junior position behind government agency debt.  I am also open to a long-term limited partnership arrangement.

Affordable housing remains a stable NE niche, performing well even during market downturns.  I am looking for a lender/individual capable of distributing $500K or more per deal, with a high potential for recurring deals.

Please DM for more details.

Looking to purchase NPN 1st or 2nd position in the state of Maine. Seems like most of the notes available are from more populated states like Florida and such. Is there anyone who can steer me in the right direction?

Looking to invest in real estate full-time.  Of course like many new investors, building momentum takes many years to truly quit a 9-5 and invest exclusively, which is my ultimate goal.  I've been toying with the idea of buying nice multi's in towns/cities that are in college towns and densely populated cities/ towns in my state.  My goal would be to furnish the 3 or 4 unit buildings for corporate renters/college students, charging a premium for the furnished units, leading to increasing cash flow compared to an typical unfurnished rental, in turn building the momentum needed to then invest in unfurnished multi's at a large scale.  With that said, I do have liquid funds, and do have excellent credit needed for lending for the properties as well as furniture loans/ etc.

My question is - how realistic is it to build a business around buying multi's with the purpose of furnishing them or corporate/college renters, or renters who simply want everything furnished?  I rent a furnished in-law apartment currently with good rents.  The inquiry was impressive when listing the property.  Initial goal is to buy 15 3-4 plexes over the next 5 years.  Of course, I wouldn't want too many furnished units all over the state, due to the risk of over-supply.  Typical lease would be 3 months minimum, with ideal renters being yearly.  I understand this is a very niche business model.  Long term goal would be to purchase unfurnished multi's with remaining cash flow after paying my salary, and then cash-out refi on each unit after 5-7 years, increasing my unfurnished portfolio with leverage.

Any comments/suggestions/different perspectives are welcomed.

It appears that Federal National Mortgage Association (Freddie Mac) assigned to MTGLQ (Goldman Sachs).  If I understand correctly, doesn't Goldman Sachs own the property?  Or would they just be the new lender?

I found a property that's been abandoned for over two years that I would like to pick up and flip.  Beautiful cape in a nice neighborhood.  Did some research and found out that the property was originally bought in 2007, foreclosure began in 2012, and was assigned to/bought by MTGLQ Investors LP (Goldman Sacs) in July of 2017.  Called the phone number for MTGLQ and got forwarded to a Goldman Sachs switchboard.  The operators at the switchboard forwarded me to a voice mailbox for MTGLQ (which apparently is the only way that you can talk to anyone at the subsidiary), so I left a message.  The next day I got a call from MTGLQ and they told me I had to talk to the servicer about short sales/ etc.  They could not provide to me who the servicer was or any other information pertaining to the property.

As luck would have it, the clerk who works in the town office of the property was able to tell me that the taxes on the property were paid by a Selene Finance (which I'm assuming is the servicer??) Selene Finance customer support will NOT provide any phone number to a REO department, insisting that any inquiry be made through email to the REO Department. After many attempts with no luck, I'm stuck at a standstill.

Has anyone been in similar predicaments?  What additional avenues can be taken to learn more/ get in contact with someone who can further assist in my short sale goal?

Additionally - has anyone had similar run-in's with Selene Finance or MTGLQ Investors LP?  Or have any contacts/advice that would be beneficial to me

Below is a scenario I've been playing around with in my head:

A silent equity partner and I purchase a strip mall for $5,000,000. We own the mall though an LLC which we both have 50% ownership stake in. A commercial bank provides loan with 70% LTV ($3,500,000). The silent equity partner provides $1,500,000 for a down payment. Equity partner and myself are both guarantors of loan OR with strong credit of equity partner, we qualify for non-recourse loan. We would anticipate three ballooning loans, each with 7 year terms until the loan was paid off.

In the above scenario, my contribution would be as the sweat equity partner. I would be dealing with tenants, property, etc. I would pull 10% NOI for life of loan as payment for my service. The silent equity partner would pull 40% NOI for life of the loan, not having to be bothered at all with any management of the property. The remaining 50% of NOI would be used as capital improvements, reserves, etc.

Once the loan was paid off, we would sell the property with proceeds being split 50/50. A 5 million dollar strip mall appreciating by 3% annually would give the property a value of around $9,000,000 in 21 years. Split two ways, that would be around a $4,500,000 slice for both of us, not to mention the NOI received over the course of the loan.

My question is -- are there silent equity investors who would be willing to jump on board an investment like I just mentioned? Generally speaking, the silent equity partner would make his $1,500,000 back from the NOI over the course of the loan, and the $4,500,000 would be their return on investment, of course not realized until the property was sold. Total return for silent equity partner would be $6 million. Let's also assume that the strip mall is in a growing community, poised for growth for many years to come. Let's also assume that most tenants of the strip mall are nationally recognized companies with strong leases.

Thank you all in advance for your replies.