All Forum Posts by: Mark Mosch

Thanks, Joel. When you do a deal and take the 20%, what cash on cash return do the investors typically accept. When they can invest in a liquid REIT and make 7-8% with relatively minimal risk, what do you need to make sure they make AFTER you take your 20%?

I was just listening to the latest podcast and was intrigued to hear the guest sometimes did bigger syndications and actually didn't put money in.  They got 15-20% of the deal just for putting it together and running it.  I wanted to see from some of you bigger guys if that's the exception.  I was curious what some of you are 'charging' for finding the deal and your organization and management of the syndicate over time.  Specifically do you give the investors a certain guaranteed payout and then keep anything over that?  Do you only take your extra share of cashflow after they are 100% paid back.  Is taking 15-20% normal or high.  Any feedback would be appreciated.

George - thanks.  I'll see if i can reach out to BOR...i'm working with FI now, but they don't like cash out.  I am using them for another property, though, that's a new purchase, and they are pretty easy to work with vis a vis Wells!

Hi Andy,

I just bought my first 4 plex down in San Antonio.  Dallas has gotten overheated in the last couple of years, and Austin is also getting pricey.  San Antonio, though, still offers some decent cap rates both on SF homes and smaller multi-families.  However, in the last 12 months the home inventory in San Antonio has shrunk and prices have appreciated like 7-8%, so that market is starting to move too.  Don't know about Houston.  Good luck.

Having a hard time getting big lenders to look at this because Great Falls Montana is so small demographically. I last refi'ed this in 2010 but since then we've driven up NOI by 20% and there should be a substantial amount of equity in there. Anyone know any banks that might be doing cash out lending in some of these smaller metro areas?

Hi All,

I wanted to see if i could get feedback from any of you more seasoned out of state investors.  I'm looking at Omaha for Multi-family buy and hold properties as some people in the forums have recommended looking at it.  Cap rates and cash flow seem to be good there, but i wanted to know if anyone with experience in that market knows whether there are solid property management firms in that area who can work with outside investors?

Thanks Sean.  I'm in some bigger syndicates too - and they do seem to be in that 6-8% area.  I'm wondering if the rates are higher on the smaller properties...

Oh - and i do get the returns can be lower on newer and better buildings with lower anticipated maintenance issues, so let me qualify by saying my targets would be like C+ to B level properties for the 10%.

Hi All,  I was curious to compare notes with others as to what minimum cash on cash criteria they use to determine if a deal is doable, and what is one they would be really happy with.  It seems to be that if your objective is to buy and hold and reinvest your cashflow into new buildings, the biggest determinant of your success is your cash on cash return.  If you are making 10% on all your properties, then you will accumulate money and future properties twice as fast as someone making only 5% - so naturally you want that % as high as you can.  On the BP podcasts they talk about "$100 per unit cash flow is good" but that's not equally true for a building where you paid $100,000 per unit vs $30,000, for instance.  So i was curious to see what criteria some of you use in evaluating whether to do a deal.  Right now i am trying for 10% cash on cash, as that seems to me to be a reasonable return, but i don't know if that's too low or if i should be happy making that.  Any insights would be appreciated.

Home Equity Line Of Credit...