All Forum Posts by: Matt Smith

Hi Everyone!

I am a multifamily and SFH investor. I am partnering with a private investor who is coming in as a debt partner to cover the down payment. This is my first time structuring a deal this way and wondering how a bank will view that since the private lender won't be on the mortgage or the title. Lookiong for advance and appreciate any feedback. Thank you!

Best,

Matt Smith

Quote from @Nick Giulioni:

@Tyler Lingle you are too kind - thank you! 

@Matt Smith we are investors ourselves - so we know what contractors are looking for! Would love to chat with you about how we can help! 

 Awesome! Would love to connect. Is there a good phone number or email I can contact you at?

Quote from @Matthew Drouin:

@Matt Smith I think this narrative is way over blown.  The systemic trouble is in a few high growth markets in the US.  The ones that had high rent growth, lax zoning laws, and general buzz about multi family gold mines.  This is not the case for the majority of metro areas across the US.

In less hyperbolic markets there wasn’t an intense amount of speculation so operators didn’t pay high and are weathering the storm on interest rate resets and are finding a way to refinance Deals with maturity walls.

I am finding that a lot of killer deals with my clients are happening in the sub 50 unit deal space for those who need to sell, because there’s much less competition in a chase for yield.  Creative financing is ruling in this transaction space.

Would love to discuss the opportunities you are seeing in the sub 50 unit universe and the best creative financing approaches for these deals!

Hi Everyone! 

I live in Illinois and am looking at a fix and flip property in Indiana. My question is, when doing an out of state fix and flip deal, what are your suggestions on finding contractors, estimating rehab costs, etc? Thanks!

Hi Everyone, I have a very general question in regards to commercial real estate. There is a lot of news around how multifamily is in trouble with ARM's and overpriced purchases in 2025. I own 2 small multifamily properties (4 unit and 8 unit) and it sounds like the big opportunities lie in big commercial property (ex. 100units and up). Can someone please explain the reason some operators are having trouble with big multifamily properties right now? Thanks!

Quote from @Scott Mac:

How are you coming up with that much larger market rent for all those units?

Why is the rent so suppressed for all those units right now?

How much will you have to spend to make those units worth more to the renter?

Is this section 8-(or some kind of fixed income program) these units seem very low priced?

Just my 2 cents.

Hi Scott,

- I utilized the brokers information and then did my own research in 1 bedroom comps around the area and the 2025 Small Area FMRs for the county which are $730 for 1 bedrooms. Even though the FMRs are $730, I was conservative and used $600 for my Pro Forma

- The current owner hasn’t raised them at all because he didn’t want any turnover

- outside of cleaning and painting, no big costs

- Not Section 8

Quote from @Jaycee Greene:

Quote from @Matt Smith:

Hi Jaycee,

Understood, my apologies. I will calculate those numbers. No, the seller is asking $725k which is the main opportunity I see to value add. Raising rents to $600 per unit would increase the value of the property approx. $200k. 

@Matt Smith Does the property need any rehab done to it?

No. New roof and gutters, updated vinyl double pane windows, resurfaced parking lot, and upgraded main water line. 

Hi Jaycee,

Understood, my apologies. I will calculate those numbers. No, the seller is asking $725k which is the main opportunity I see to value add. Raising rents to $600 per unit would increase the value of the property approx. $200k. 

HI @Jaycee Greene, the current cap rate is 6.79%. However, current rents are on average $440 per unit, market rent is $600 per unit. So pro-forma cap rate is 10.28% with upside being the rent raises with no big capex needed. Hopefully that answers your question. Thanks!

Hi everyone, I'm looking at investing in a deal in Indiana. It is a 16 unit apartment building not too far from Indianapolis. My question is, when you are looking to partner with someone to fund the down payment, what is the best way to find a partner without going to family/friends? Thanks!