All Forum Posts by: Jason Merchey

OK thanks all. I'll look up Pacaso. @Robin Jamison please IM me :)

My two cents, you are brave to invest in an area that is risky like the one you're describing! Money is made, or lost, by taking risk. So good luck!

Does anyone use a bank that doesn't require much "seasoning" of the leases on a triplex? I am just now finishing a redevelopment project and am considering doing a cash-out refi loan. I was thinking it could be 4% for 30 years with 30% down, but am not sure if the leases definitely need seasoning or not. In case you can't tell, I'm not experienced with loans and definitely not refi's. Thanks!

I have this feeling someone is going to come by and be like "Jason obviously everyone knows this." But it seems to me that the more equity a homeowner has, the more they are able to flex in regard to any deal you would offer them. Now, you are probably noting that if a person has enough equity why don't they just sell it on the open market, maybe with a Realtor? I think maybe there is a sweet spot between too little equity to even sell you the thing, and too much equity where they will clearly want to put it on the open market and take the hit on the condition of the house. It seems to me regardless of equity, the main goal is to solve someone's problem. If their problem is not solvable, it goes to the bank, and if it's easily solved by dropping it on the market and paying a Realtor to solve their problem (and they can afford the time that takes) then they never meet you either. Am I totally off base?

I think you would want to sell, but I like to hit doubles, not aim for triples and home runs. 

The negative to that is that you would have to reinvest that capital. The flip side of that, though, is that you want to invest sooner rather than later in a rapidly appreciating market. 

I have since looked at the underwriting on the two assets they will place or have placed in the Fund. They seem fine. I don't think Ashcroft has any issues with generally how they underwrite. I have gotten a number of mistakes in the distributions, but they always seem to correct them and say that their new system will obviate that kind of thing going forward. I think the only two issues that I think about as I contemplate signing on are the speed with which they have been growing, and the fact that they are just now moving to being vertically integrated -- their property management and renovation teams are all in-house now -- not 3rd party like they used to be. They also shuffled their fees around to reflect this. It's probably a good thing, but as you can see, the theme here is growth management -- can they keep growing successfully, or will they encounter sheering forces that cause a problem? I think the odds are pretty good that they bring all hands on deck and make the step up to the big time in 2021-22.

Is anyone in the Legacy Capital Group debt or debt/equity funds? They have been lending out of Seattle since about 2008. They seem very successful and have a deep bench. 

Ya it sounds like you're talking about active investing in apartments. That's ambitious for sure. I myself have settled into the passive or limited partner type of apartment investing. And a little bit of debt investing, but also passive. It's just easier. I am content with 8-10% for debt and 12-14% for apartments/equity. If you require more than that, and want to work hard and take more risk, then active is your ticket. If you can work your way into passive investing, though, that's what you call "mailbox money" or "building wealth slowly and carefully." 

If you are talking about Legacy Capital Group, yes. Out of Seattle, lending/equity hybrid outfit. So far I like them!

Does anyone know and use any debt fund? I am pretty heavily invested in Praxis' "Riverbend" vehicle, so not sure I want to do any more there. I have heard of Arixa, though the up to 85% LTV/LTC is pretty unsettling. I have heard of Pearlmark, and will check them out. Any other suggestions?