All Forum Posts by: Joseph Bramante

you should take a course on passive investing. Learning how to invest as a syndicator wont help you all that much as a passive since you don't have the same tools and resources as the syndicator. 

I had one of my LPs send me a deal from gocapitus he was thinking of investing in. I did a video review of the package on my youtube. Basically they missed the loss to lease figure and would be breaking even in the first few years. They use an economic vacancy figure instead of breaking out loss to lease, bad debt, and concessions so as to conceal their assumptions but a skilled operators can reverse calc it. I think he thinks he is smarter than he is and he has convinced a lot of people of the same. I also know he doesn't do his own underwriting and outsources it, which is very risky, and obvious when you look at them try to explain the underwriting during presentations. He is a brilliant marketer, I will give him that.

Investment Info:

Large multi-family (5+ units) commercial investment investment in Houston, San Antonio, Dallas/Ft. Worth.

Cash invested: $3,600,000

Closed on this 112 unit, 2015 construction beauty in Feb 2019. Purchased from the developer with plans to capitalize on significant operational efficiencies due to owning the property next door. Plan to spend $350k over the next 2 years adding a new office, adding amenities and adding water meters to each unit.

Investment Info:

Large multi-family (5+ units) commercial investment investment.

Cash invested: $2,100,000

Closed on a 137 unit apartment community in Sept 2016 that had been owned by a couple for the last 10 years who were looking to retire. Spent $1M renovating the property and current rent as of March 2019 is $250 higher than when we took over 2.5 years ago.

 I bought 250, 250, 300 and 350 for years 1-4 and feft year 5 open since i can always cap it later or just sell early if things go crazy. Though from what I am reading, it looks like the rate will be going back down some.  

@Kevin Dean its like @Gino Barbaro stated in his post, you have to get creative in how you find the value and really negotiate the heck out of the deal. Most of our value comes from being a better operator, owning the property next door, and knowing how to maximize the water revenue.

I previously stated what our spread over LIBOR was. The LTV is 77% since we negotiated the bank loan and purchase price outside of the contract. We ended up getting the pice $300k lower than the price the bank originally saw and they are honoring the proceeds of 8.5M.

@Brian Pawl it seems that way. I am careful not to count my chickens before they hatch though, but it sure is tempting. 

All properties located in Houston or surrounding markets. 

@Joel Florek We developed a unique underwriting model for our current rural new development and identified several key factors that, on paper, made this town attractive to us. Before I go and apply that same methodology to your town, let me first get through lease up on this property (Winter 2019) to prove our math was correct. (though i am pretty sure we are correct)

@Kevin Dean saw about 20 in person, submitted offers on 7, made final cut on 3. 

Rates are going up so we are switching to floating rate loans w 4 years of rate cap insurance. On our current deal that equates to about $200k additional cost at closing but the deal cashflows better and should rates drop (due to a recession?) you win big time. The primary provider is Chatham but sometimes the bank offers it as well and can sweeten the deal for them if you buy it through them in exchange for better treatment elsewhere. I was able to negotiate our current loan to 250bps over LIBOR by buying the rate cap through the bank. 

Yes bringing in more equity. 75% LTV. 2 months of debt service and taxes for reserve.

See my ad in the market place (link on my profile) for our current deal. Our underwritting is laid out for you to see. 

@Brian Pawl great subject! Here are mine:

-close the 112 unit, 2015 construction property we have under contract in feb

- break ground on our 168 unit new construction in May

- get my CCIM accreditation in April

- take over management for 750 units in feb

- identify and close on 300 units by year end.