All Forum Posts by: Michael Heisterkamp

Number's look good on the Cashflow statement, where I have raised eyebrows is the ARV side. That's a very small amount of value increase for the capital flowing in. As @Chris Davis  mentioned the turnover might be high which can have a huge impact on the expected earnings.  What are you using for a vaccancy assumption?

It is critical to talk to their other clients, if they are happy to connect you things usually are in order.  If they are cagey or refuse to connect you I would take that as a sign to avoid.  If they are new to the game then dig deeper into their property management background and see if it passes the smell test.

As for questions, the basic business stuff like insurance, are they properly licensed, have a company formed properly, their rates, the timeline to do repairs, their experience with collecting rent from tenants like yours, etc.

@Thomas Tamay Shoot me a DM, I do a significant amount of lending work in the NY and other NE markets.  We are straight forward, highly competitive and quick and have the ability to grow with you as your business does.  As others have alluded to it is good to have a few people you can rely on.  

Send me a DM.  I may be able to help with this.

As for more genearl advice in the area, as @Bryan Hancock says make sure you learn the rules surrounding crowdfunding and in addition to that learn the rules surrounding the ability to advertise your fund.  Depending on the audience, the certifications you have and the business classification of the fund you may or may not be able to advertise to specific groups.

Michael

What are your targets for this investment? 

IRR? Number of Units? CoC? ROIC? Exit Strategy? FCF? Time spent on the investment? Target price?

Knowing these things can help us help you.

There are those green bags from WM that may work.  Or you can rent a truck and take it to the dump yourself.

It is being advertised for a development project.  Now that doesn't mean it will actually work.  You will have to get it rezoned, likely recieve a density waiver, do a bunch of dirt work (basically sewer, water, power and legit dirt moving) to create lots at the low end to a full development including building homes.

@Jason A. I have some options available for this.  I will ask my cousin who is an MD as well what he used.  I know that the AMA has some stuff for SFRs and Duplexs that can work for bigger stuff, but that is it really random on what qualifies.  If you would like to discuss additional options feel free to direct message me.

Also I am also located in Cambridge if you would like to discuss further.

Check to see if capital is available for this project.  I know many banks will be very warry about lending on property in this case if it is not for continued used.  Just an example there was a rather sizeable commercial development that was done on an old landfil and a few years after the project finished the buildings started to sink and there was methane seeping out of the ground making everyone sick.  The bank ended up having to eat tens of millions of dollars on the deal.

Congrats on getting the property acquired.  I live in the Boston area and would love to help out if I can.  Feel free to message me.