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All Forum Posts by: Matthew Bernal

Matthew Bernal has started 39 posts and replied 72 times.

Post: Private Money Loans for Soft Money Terms

Matthew Bernal
Posted
  • Investor
  • Carmel, IN
  • Posts 84
  • Votes 28

Aloha, Jo-Ann. 

I currently have a property under contract in need of funding. The seller has invested in several of my properties, and has agreed to do seller finance at a drastically reduced price. 

The property sits on four acres along the trinity river. Two of the acres consist of four occupied, income generating, single family homes, the other two acres are untouched forest. Additionally, there is a community center and a large barn, which could both be converted into income generators as well. 

My father will be partnering on this with me. He's an experienced GC, and I have completed 24 deals. 

I would love to discuss the opportunity with you in further detail. You can reach me at 808-892-9309

 Here are the basics:

Acquisition Details:

Purchase Price: $965,000

As-Is: $1,500,000

Rehab: $350,000

Hold Time: 6 Months

ARV: $2,200,000

Investor Returns:

Investment: $350,000

Return (Assuming 10% Annualized): $

Repayment Method: Cash Out Refi

Investment Details AS IS

NOI: $173,921

DCR: 1.26

Cap Rate: 13.67%

Post: Penthouses in Waikiki!

Matthew Bernal
Posted
  • Investor
  • Carmel, IN
  • Posts 84
  • Votes 28

Aloha! 

I am an experienced investor offering a 25% equity position in three penthouses under contract in Waikiki. I have lined up the financing, put together the construction crew, and completed all preliminary due diligence. All that's missing is an experienced equity partner who is excited about owning vacation rentals in the tourist capital of the world! 

The renovations needed are basic, so hold time will be minimal. Equity partner will have their principal investment reimbursed upon Cash Out Refinancing, and will continue to collect dividends monthly for five years. 

Please feel free to contact me via phone at 808-892-9309 or via email at [email protected] for more details.

Here are the basics:

Investor Return

Investment: $695,000

Monthly Dividends: $4,700

5 Year Return: $351,255

ROI: 150.62%

IRR: 30.87%

Property Financials:

NOI: $498,530

NCF: $210,139

DCR: 1.99

Equity Multiple: 1.51x

GRM: 6.37x

Post: Offering 10% on a 36 Unit Section 8 Apartment Complex

Matthew Bernal
Posted
  • Investor
  • Carmel, IN
  • Posts 84
  • Votes 28

I am an experienced investor seeking a debt or equity partner to close on a high yielding, seven figure commercial property in Lawton, OK.

The property is already renovated in accordance with OK's Section 8 Housing Regulations, and is likely to be fully stabilized within six months. I am set to close in three weeks, so this offer is time sensitive. Equity option available at the time of refi if we feel we are a good fit. Contact me via phone at 808-892-9309, or via email at [email protected] for detailed financials and due diligence documents. 

Return Info:

Investment: $675,000

Return: $33,795

Repayment Method: Cash Out Refi

Term: 4-6 Months

Stabilized Financials:

NOI: $265,778

CAP Rate: 11%

DCR: 1.21

Exit CAP: 7%

GRM: 10.01%

Post: Feedback in Chicago!

Matthew Bernal
Posted
  • Investor
  • Carmel, IN
  • Posts 84
  • Votes 28

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Chicago.

Purchase price: $570,000
Cash invested: $100,000

A project that I am currently in the process of rehabbing in Chicago's beautiful Park District. I had originally intended for the finished product to be a 3 bed/2 bath duplex up/duplex down, but have been told that it is more profitable to convert to a single family home. Will need a property manager soon! Would love to connect with other investors in Chicago for feedback!

Purchase Price: $570,000
Rehab: $355,000
ARV: $1,300,000

NOI: $157,523
DCR: 1.56
IRR: 1.38%

What made you interested in investing in this type of deal?

I obtained this property towards the beginning of my investing journey. An associate of mine happened to live in the area, and stated that Chicago had lots of great opportunities. I purchased three properties within three months of that conversation. Summerdale was one of them.

How did you find this deal and how did you negotiate it?

I found this deal with the help of two outstanding realtor partners in the Chicago area.
This project didn't require much negotiation. I had specific numbers that I wouldn't budge on, and the seller had been trying, unsuccessfully, to sell for 7 months. In the end, we both walked away happy.

How did you finance this deal?

I financed this deal by using a hard money loan to cover 85% of the purchase price and 100% of the construction costs. The associate I mentioned above brought a capital partner in to cover the remaining 15%.

How did you add value to the deal?

I added value to this deal by networking with great people and by being creative with different exit strategies.

What was the outcome?

Unfortunately, this property had some hurdles. The good news is that I was able to buy the project out and get it back on track.

Lessons learned? Challenges?

This property taught me that at the end of the day, I am ultimately responsible for the success or failure of any project I am involved in. Every deal requires consistent follow up, dedication to synchronicity, and a commitment to accountability.

Post: Need help structuring my deal with 2 private money lenders

Matthew Bernal
Posted
  • Investor
  • Carmel, IN
  • Posts 84
  • Votes 28

Aloha! 

I have completed 24 deals using the, "Crowd Fund," model. Here's what has worked for me: award a capital partner an equity position that is equal to their contribution.  

The cap stack of any acquisition involving a mortgage consists of a combination of debt and equity. In your case, 80% debt with a 20% equity contribution needed to close. Add in another 5% (for easy math) to cover all the fees, costs, and buffers, and your LTV comes out to 105%, which puts you, the one carrying all the liability and risk, underwater on this project.

While it's true that they are bringing the capital to close, which is wonderful, you are providing a lucrative opportunity for them. They may make the argument that there are a thousand opportunities out there, and they'd be right. That being said, for every thousand opportunities, only a handful of them are GREAT opportunities, which can still be financially devastating without a competent leader to see them through. 

In short, you are bringing more value than them. Your credit and experience made it possible to bring $1,990,000. They are bringing $415,000. You are taking on all the risk, bringing all of the experience, and have already proven yourself to them. Offer them equity equal to what they are bringing to the table, which is 25%. 

If you made it to the end, hope this helped!

Post: Syndication in Pittsburg, Kansas

Matthew Bernal
Posted
  • Investor
  • Carmel, IN
  • Posts 84
  • Votes 28

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $635,000
Cash invested: $50,000

Flew all the way to Kansas to make a decision on this property. After lots of creativity, positive reinforcement, and not-so-subtle enthusiasm, I was able to convince the seller, also an investor, to bring me on as a partner to help him get this property stabilized and profitable.

The building needs a lot of work, but the value add brought on by the across-the-street location of a popular university, combined with an attached vacant lot, will make this project worth the effort.

What made you interested in investing in this type of deal?

I was interested in this property for a few reasons. The biggest one being that the seller, also an investor, was about as distressed as the building! While there were many factors that attracted me to the deal (location across the street from Pittsburg State University, rents drastically below market, an attached vacant lot with huge value-add potential, and reasonable sale price), what made me pull the trigger was the opportunity to turn a fellow investor's problem into an asset.

How did you find this deal and how did you negotiate it?

I have an outstanding network of real estate professionals who send me properties daily. What made this building unique was that it was owned by an investor, which made it simple to demonstrate that it was more valuable to bring me on as a partner than it was to sell it to me at a loss.

How did you finance this deal?

The seller had initially purchased this property by obtaining the total asking price from a private lender of his. So on paper, the unit is free and clear. I advised the seller that this detail gave him the power to adjust the sale price to a figure that put it in an incredibly favorable equity position, so long as his lender, also a long time friend, agreed to it. Put simply, it was a short sale without the bankers. The reduced purchase price qualified us for a 100% fix and flip loan.

How did you add value to the deal?

I added value by thinking creatively and boldly about how to turn this investor's liability into an asset.

What was the outcome?

The seller and I are partnered on this deal, and we have our first team meeting tomorrow.

Lessons learned? Challenges?

The lesson here was that even a great deal can be the one that pushes you past your limits and into burnout territory. When we burn out, mistakes get made and the people who took a chance on us lose money. The good news is that with a little luck, a lot of humility, and a willingness to remain hopeful no matter what, we can always make our way out of burn out and back into ball out.

Post: Looking For Limited Partners to Create an 8 Figure Fund

Matthew Bernal
Posted
  • Investor
  • Carmel, IN
  • Posts 84
  • Votes 28

Hello everyone! I hope that whoever is reading this is loving life as much as I am. 

I began my company a year and a half ago with $50,000 in credit, and in that short time, have completed 24 deals nationwide. Mostly seven figure. All profitable. All proveable. 

My model is pretty standard: Find an outstanding property, structure it creatively with as little risk as possible, negotiate an outstanding price, put a team together, use hard money to cover 85-90% of the purchase price, get an equity partner to cover the cap gap, securitize via deed of trust, stabilize, then exit via refinance or flip. 

Easy, right? For a time, perhaps. Unfortunately for me, albeit fortunate for whomever responds to this post, I am now doing deals that require much larger sums of capital in order to close, and believe that my time and energy would be better served by creating my own fund.

I currently have 10 assets, comprised of 105 units, under contract. All of the assets are well below market value, are incredibly located, and have impressive upside. 

The total current AS-IS value of this portfolio is just under $14,000,000 as contracted, and all but one of them can be stabilized in under a year. The STABILIZED value of the portfolio is just under $40,000,000. 

I have the financing lined up, a concise vision for each project, and outstanding teams of RE professionals to bring each vision to fruition. All that's missing is an investor, or group of investors, to complete the equity portion of the cap stack. I am only interested in working with financially literate private individuals, as I do not have enough time to obtain conventional funding or go through lengthy underwriting and application processes. 

The total amount needed to close every asset in this portfolio is $4,000,000. That figure covers down payments, along with capital buffers to keep the assets as secure as possible. Lastly, I am open to offering interested parties either debt OR equity. 

Sound too good to be true? Get in touch and I'll send HUDs, detailed financials, references, and anything else requested for your due diligence process. I am also willing to pay a finders fee for any referrals that convert to committed limited partners.

Looking forward to discussing further!

Warmly,

Matthew 

Post: Searching For Marketing Company To Make Pitch Decks

Matthew Bernal
Posted
  • Investor
  • Carmel, IN
  • Posts 84
  • Votes 28

Hey BPFam! I was wondering if someone could refer me to a company that makes outstanding pitch decks and executive summaries? I have six deals in need of capital partners, but don't have the time to make pitch decks that are as exciting visually as they are numerically. Please assist! 

Post: Multi Family Short Term Rental in Cook County!

Matthew Bernal
Posted
  • Investor
  • Carmel, IN
  • Posts 84
  • Votes 28

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $972,000
Cash invested: $225,000

Currently buying my two partners out!
Will convert to this large, 3 unit multi family home with an unfinished basement into a 4 unit duplex up/duplex down airbnb rental. Daily rates expected to be 350 per unit.

Currently offering 8-12% to investors interested in getting involved for 7 months!
PP: $972,000
ARV: $1,800,000
NOI: $321,993
DCR: 3.74
IRR: 22.43%
Equity Multiple: 1.12

What made you interested in investing in this type of deal?

My goal is to hold over 1,000 rentals nationwide by 2023

How did you find this deal and how did you negotiate it?

I saw that my two partners were ready to exit, so I offered them a flat fee to exit. It was very friendly.

How did you finance this deal?

Both the initial purchase and the refinance are funded via hard money and private investors. I am still seeking investment for the second phase of the project.

Lessons learned? Challenges?

I learned the difficult lesson on the importance of choosing an architect wisely.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Meg and Russ Wood from Compass Realty were the BEST! Contact them at 773-273-9581

Post: Waikiki Penthouse BnB Investment Opportunity

Matthew Bernal
Posted
  • Investor
  • Carmel, IN
  • Posts 84
  • Votes 28
Quote from @Matthew Bernal:

Investment Info:

Condo buy & hold investment in Honolulu.

Purchase price: $2,500,000
Cash invested: $50,000

Under contract on three penthouses in the Hawaiian Monarch off of Niu!
Project involves some renovation, but hold time shouldn't be longer than 3 months before cash out refinancing.

CAP Rate: 17.48%
ConC Return: 16.56%
DCR: 2.01X
Equity IRR: 31.73%
Equity Multiple: 1.32x
NOI: 436,953

What made you interested in investing in this type of deal?

Honolulu is rated A+ for short term rentals according to AirDnA. Why not make passive income?

How did you find this deal and how did you negotiate it?

I loved the condo I was renting, and asked my landlord if he'd be willing to sell. Turns out he owns every penthouse on the 40th floor. He agreed to give me a discount if I got all three, so here I am!

How did you finance this deal?

I am approved for 85-90% of the purchase price and 100% of the rehab costs. Looking for a partner to fill the gap!

How did you add value to the deal?

I created the opportunity, put the team together, formulated the LLC, negotiated the price, and did all the research to ensure a low risk underwriting strategy.

What was the outcome?

I close in a few weeks! Just looking for that Gap Partner!

Lessons learned? Challenges?

Short Term Rentals are a whole new beast. These penthouses gave me a crash course!

 Would love to connect. When is a good time to cht?