All Forum Posts by: Mark Allen

@Tigran Kalaydzhyan

You’re going to have to allocate purchase price for each asset for tax purposes. Good conversation to have with a CPA who also invests in real estate. This PPA will be your basis, should you sell individual homes and have to pay capital gains and depreciation recapture.

@Asprulole Vue read “Buying in Bulk” on Amazon.

Check out Exotic Car Hacks course to transfer wealth into exotics when their depreciation flatlines. You can drive 1-2 years and potentially get paid to drive a cool car. Or grab a rare Porsche 911 model that appreciates. I know of plenty of real estate investors that have taken lines on their assets (cars, gold, paintings, stocks, etc.) to buy more cash flowing assets.

@Frank Scappaticci

There you go Scap! Great submarkets!

@S Thakkar

I list the pros and cons in my new book on Amazon “Buying in Bulk: How to Buy and Sell Single Family Rental Portfolios like an Institutional Investment Fund”.

Links Construction is the premier Multifamily builder in DFW. Lee Robinson leads up sales.

@S Thakkar

I’d partner with someone who has experience and then bring the money to the table.

For a three story garden you might ballpark $105-$120 / nrsf on 850 NRSF unit avg. For 30 units with no amenities, I’d say $105/ft.

10 units/acre is low density for an apartment complex. There’s no economies of scale on 30 units from a development or operating perspective. I’d build 30 single family rentals before apartments for various reasons (lower expense ratio, lower turnover, most likely cheaper to develop and build, Multifamily agency financeable, etc).

I’d personally reconsider this project. Go bigger and partner with experience.

@Charlie Stevenson nice! Just had coffee with Dustin, assuming your partner in the deal.

@Joe Taft just curious why you need to replace concrete. Any concrete work is really expensive... especially when under roof.

@Zach Heine I was not a syndicator during the last recession. Seems like there’s a wave of syndication that we didn’t have last cycle because of how fast information moves with social media and sources like BP.

That being said, properties that went into receivership were (for the most part):

1) In low income areas. Rents and occupancy go the opposite way. Location and tenant quality is important. (Buy in A/B areas)

2) Owners who weren't well capitalized / properties that had significant deferred maintenance. (Budget enough CapEx)

3) Loan maturity - For those that had to refinance or sell due to loan maturities when values were cut in half, they didn’t have the equity to survive. (Lock in long term debt / Stay away from bridge product)

IF it were a 3-year term, I'd say run due to risk of recession after a 10 year run - 7 years isn't bad. Some good feedback here. Keep exploring other options with local banks, look at variable options, or look at a company like 5arch who loans on a national scale.