All Forum Posts by: Luke Hutchins

Quote from @Kelly M Robb:

Hi there!

I'm looking for a recommendation for an investor friendly title company that has experience with novation agreements. I'm on the Western Slope and I'm not having any luck with anyone out here.

Hey! Did you ever end up finding anyone? I’m trying to find one in my market and have had little to no success so far.  

Quote from @Ronald Rohde:

No offense, a 5 unit isn't going to garner much fees for a mortgage broker. I'd stick with a local CU or bank that you currently have deposits with. Get the smallest lender that can do your deal size. 

 Hey that makes sense, I know how it is. We wanted to connect with a lender that we can build a relationship with over time. It may be tough to do that on our first couple of deals since they’ll be on the smaller side 
thank you for the response! 

Quote from @William Anderson:

Tim Allen, SimpleMortgageOnline.Com

https://simplemortgageonline.c...

I have used Tim to finance more than a dozen investment properties plus the many more he has financed for my clients.  

Hey thank you so much for this information! I’ll check this out today 

Quote from @Salvatore Lentini:

@Luke Hutchins - Have you tried a local bank? That's where you'll get the best rate. If that's not an option due to their underwriting requirements (W2 and tax returns), then I'd be happy to help. I work with a handful of strong commercial lenders to build my portfolio (closing in on 200 units). Their rates are a little higher but if the property cashflows or you're buying one that needs work and the numbers pencil out in terms of what you're buying it for, what the rehab will cost and what the ARV will be...then you'll get approved no problem. Message me and we can see if they'd be right for what you're looking to do.

Thank you for the response! 
yes I’ve tried a local bank in my area and although we have not actually heard whether or not we can get the loan or have gotten them really any credentials, I’m thinking it may not be the best match for me and my two partners just based off what the loan officer told me. 
me and my other two partners have high income but just one of the partners has really strong credit. I would love to talk more and look into more options 

Hello, I need a recommendation on a good multi family Mortgage Broker. 
Ive worked with many residential lenders over the years, for my clients and myself but none of them are connected in the commercial side of RE.
I'm looking to purchase a few smaller commercial multi families by the end of the year god willing in the NC, VA, SC, GA regions. (5-20 units)

If anyone has any strong commercial mortgage brokers that specialize in multi family properties that would be GREATLY APPRECIATED! :) 

Quote from @Amy Heitner:

@Luke Hutchins

Here is another article that will help...

Waterfalls in Real Estate Investment – What Are They & How Do They Work? - Apartment Investor Pro

Got it! Thank you so much for you’re help! 

Quote from @Mike D'Arrigo:

@Luke Hutchins The Quad Cities, particulalry Davenport, IA is a great market for these small to medium apartment complexes. We've done many of the in the 6-10 unit range and they are right in your price range. I'd be happy to share more insights if you'd like. Feel free to reach out. Always happy to help.

Got it! Thank you for the info! 
after a lot of thinking, I’m absolutely open to doing deals in other parts of the country, early on in my investing as well. Would love to talk more when you are available. 

Quote from @Jim Pellerin:

@Luke Hutchins Yes, you want to set up a Limited Partnership. The common structure is that you pay your LPs a preferred return of say 8%. Then any profit after that is split, like you suggested, at say 20/80 (the most common). 20% to the GP and 80% to the LPs. Keep in mind, as the GP, you can also charge an aquisition fee, a management fee and a disposition fee.  

 Got it! Thank you so much, definitely very helpful. This is about what I was thinking based on what I’ve researched 

Hello, I’m a residential real estate broker in NC,. I’ve been in the business for about 8 years now and have become a top producer in my market over the last couple years and own my own brokerage along with my business partner. I also manage a lot of properties for some of my clients. 

I’m looking to transition out of real estate brokerage and get in Multi family investing, ultimately I want to build my business on medium-large apartment complexes and have a 9 figure portfolio, But since I’m just getting started in multi family investing I’m hoping to take down something with 5-25 units for 300k-2 million to start. I definitely plan to partner up and plan to raise money from investors for any purchase price over 700k. 
one thing I’m still trying to figure out is what kind of payout structure to offer the limited partners who just simply invest their money in the deal passively. 
Do you give them a projected return upfront then you as the general partner keep the difference on what’s left over after that projected return? 

I’ve heard a lot of investors do a 70/30 split of the net cash flow and profits. (70% to the limited partners)
any advice would be greatly appreciated :)