All Forum Posts by: Matthew Allen

I am under contract for a tri-plex in Tempe, AZ, and would like to find someone who's a reputable appraiser of multi-family. I get a feeling that I might be overpaying for the property, which is OK because I have a 4% carry-back from the seller at 30-year AMM and 5-year Balloon. I'm willing to pay a bit more because of the amazing financing, but how much am I overpaying is the question?

I am under contract for a tri-plex in Tempe, AZ, and would like to find someone who's a reputable appraiser of multi-family. I get a feeling that I might be overpaying for the property, which is OK because I have a 4% carry-back from the seller at 30-year AMM and 5-year Balloon. I'm willing to pay a bit more because of the amazing financing, but how much am I overpaying is the question?

In advance, I appreciate any advice that you can give pertaining to my new career endeavors in 2021.

For some context, for the past 20 years, I’ve owned multiple businesses that pertain to IT Consulting and Technology. Those businesses will continue to grow and flourish, and excitedly I’ll be spending more time on building a Residential MF RE portfolio. Our family will be deploying our capital to purchase our own properties, and deploying capital (matching funds) within deals that we find/syndicate.

For the last 3 years, we’ve followed the buy/hold strategy, buying smaller MF (Duplex, Six Plex, etc). Moving forward, we will be focused upon larger deals, likely 50 doors or more.

That said, we’re new to syndicating deals and I have the following questions. I’d love to hear back from you on this thread, or perhaps I can buy you a virtual Cup of Coffee over the Phone or Zoom Call.

Questions to follow:

1. From your crystal ball, what mistakes am I going to make initially in doing Residential MF RE syndication?

2. How are you sourcing investors? I have no interest in being another Social Media or Podcast guru, from my perspective it’s too noisy out there nowadays.

3. How are your deals structured? I've had a couple of convo's this year already and it seems that everybody is structuring on the acquisition, management, tiered equity split on disposition based upon IRR achievement. Is your asset management fee based upon NOI or Rev?

4. Do you believe there's an opportunity to deliver a reasonable IRR to your investors buying assets that have already gone through the value-add process, or is the ONLY way to generate the necessary IRR to go the value-add route?

5. Considering we’re likely going to have to underwrite 150 assets in 2021 in order to acquire 2-3, are there efficient tools (Website Calc, Spreadsheet) that can be used to easily run the numbers?

6. What tools are you using for Investor Relations? Are you using IMS (RealPage) or Juniper Square? Are there more affordable solutions to begin with as a smaller, newer to market, investor such as myself?

7. What advice do you have in deal flow? While we've had success in acquiring off-market, FSBO deals, which were smaller assets, I'm 99.9% sure that everything 50 units or greater are likely to be source always through brokers? Right? We're probably wasting our time hunting down and cold-calling ownership of those larger assets. Right?

8. What other questions should I be asking that I might have missed? 

Incredibly grateful beyond my ability to communicate it. 

Matthew Allen

All6N Investments, LLC

The inspection came back from a smaller six-unit apartment and 1 of 3 buildings need a new AC/Electric Furnace (Split Unit) with will cost $5,500 installed per unit, so basically $11,000 for both units. Both are working now, but are 23 years old and probably 8 years over it's prime.

The question that I have is... 

The listing agent has said that the seller doesn't have any appetite for fixes/replacements or concessions since I negotiated them down on price by 2.5% and negotiated a 4.2% owner carry contract versus 5.0%. 

Would you just move forward with the deal? Would you hold strong and command the concessions at closing? Other than these AC/Heating issues for $11.0k, the properties are flawless and in perfect condition. 

Thoughts?

Thanks to you both for the referrals. I appreciate it.

Hello, we’re new to the Phoenix and Tucson area and have recently purchased several single-family and multi-family residence investment properties. We’re seeking to identify reputable General and Sub-Contractor professionals who can help with rehabs, additions, value-add, etc.

We can all agree that speed (and always quality) is the key to turning multi-family apartments and flipping houses. We've gone a good job in identifying deal flow, financing, legal, and partner investors, but don't have a good handle yet on the trades.

Thoughts?

Putting a property under contract that's zoned R2 (has two rental income-producing properties) and need to do my due my diligence on getting the necessary variances to build 12-15 multi-family units. Once mutually accepted, I'll have three-four months to approach the city of Tucson. 

Would you approach the city with a Land Use attorney or would you go another direction? 

I'm asking for referrals to several reputable multi-family inspectors (6 units under contract) in Tuscon, AZ. Thank you in advance.

I'm asking for referrals to several reputable multi-family inspectors (6 units under contract) in Tuscon, AZ. Thank you in advance. 

I'm potentially locking up a smaller apartment building this weekend, the seller is willing to carry the contract 30-year amortization, 5-year balloon, 5% interest, and 75 LTV. Thoughts? What are the going commercial rates at right now, all my props are residential and FHA (actually refinancing all of them now). Thanks in advance for you're advice/input.