All Forum Posts by: Michael Gilman

We have released our2021 Portfolio Review, and our 2022 Multifamily Outlook - https://www.crossmountaincapital.com/post/2021-review-and-2022-multifamily-outlook

With over $5million raised and over 250 units acquired, 2021 was a strong year and we look forward to what 2022 will bring. On behalf of the Cross Mountain Capital team, wishing everyone a a healthy and prosperous New Year.

@Bob Foglia

As others have noted, sounds like passive investing options might be best such as notes, REITS or syndications. Your highest cash flow  and cash on cash return will typically come from a syndication investing in tertiary markets, or niche strategies such as short term rentals and mobile home parks.

The only time there may be a de factor sponsor equity requirement is from the lender. Requirement or not, practically speaking, I am not sure a sponsor can market an offering without committing any capital. This would be a big investor red flag. 

We have short term rentals in VT by Stratton and soon Killington.  Prior to Covid off season was slow (and properties still cash flowed well from peak season rentals) but since Covid we have seen significant demand in the off season as well, and better revenues then ever. 

The major problem right now is inventory. Our existing assets were acquire pre-covid and current pricing may not make the numbers work.  For this reason we are starting to acquire vacant land or existing lots that can be subdivided and developing with prefabricated cottages. 

@Lance Nelson

Use a lender that is not using regular way residential underwriting standards and looking at DTI. Hard money lenders and commercial lending divisions of bank and credit unions come to mind (many won't commercial finance on less then 5 units but I have seen it done)

@Chris Matthew

Immediate solution is you can make emergency repairs with no notice if they are in fact required (practically best to paper yourself staying emergency repairs will be completed on so and so time and date due to damage caused by tenant etc..). You can also do periodic check ins with sufficient notice to disabuse tenants of the notion they are free to do as they please.

Longer term solution is attorney should go to higher court. Should be framed as a health and safety based eviction as opposed to failure to pay rent.

@Amanda Schneider

This is going to be governed by your purchase contract. Most will have a clause that makes seller responsible for maintenance and upkeep of property during contract period. Many contracts will speak to liquidated damages if seller or buyer is unable to perform. Typically, buyer is entitled to out of pocket costs and in some case consequential damages. In rare cases it may be possible to have a court enforce the terms of the contract and order specific performance (sale of property).

To @Ashish Acharya point, if you want to avail yourself of the deduction, consider structuring your participation in the investment as active (via direct acquisition, joint venture or a role in the GP). 

Ethan, I think your best bet is to do both. Sounds like you have a nice operation going on the wholesale side and it takes time to ramp up the fee stream from syndications. Your wholesale business is a great way to fund and grow your syndication business till it is self sufficient.

Also, I'll shoot you a DM to connect. I have some partners who are looking to buy SF properties as scale from wholesalers. 

Agree, if getting off-market deals was easy everyone would do it.   Certainly properties can go to a broker, but there is definitely a population of potential sellers out there that would prefer go to buyer for a number of reasons wether its removing broker free, need for a quick sale, or desire not to publicize. T

Here are a few platforms out there that will facilitate the off-market search for you like Propstream and Reinomy but it requires investment in systems and scripts to do it efficiently. There are also full service off-market search providers like Offerd, which I use, but they are on a much higher pricing tier.