All Forum Posts by: Michael Gilman

Elijah, great story. Let me know when we can hire you!

If you have active involvement in the syndication (i.e. found the deal) you should be receiving a GP promote even if . Check the Michael Blank deal desk guidelines as a good waypoint. They will bring the equity (taking most of the deal) if you bring them a deal that hits their criteria. Of course it is not guaranteed they will invest so best to tee up the economics and relationships with them or another sponsor well in advance. 

SDIRA should be avoided for passive equity investments in syndication due to UBIT taxes. A qualified retirement plan, such as the eQRP are the preferred vehicle for our investors.

I think the value is in the networking and experienced team - this is the true value in any of these mentorship programs.  Multifamily investing is a rather elementary activity that any number of books can get you up to speed on. I personally like the Michael Blank Mastermind group. 

Everything @Brian Burke said. Long term buy and holds are typically more suited as a principal investment strategy and perhaps a Joint Venture. 

Hi Lev, when we ran the analysis it is often tough to make the math work on ground up new construction + land acquisition without existing hookups. It's certainly not impossible, and I have heard of several people doing it, but they were VT locals and had the local network/experience to get costs down. Also the common theme was modest construction (prefabricated like Aframe or cottage).Historically in the area it has been better to buy preexisting ( though now there is no inventory). We have been looking at modular construction but on the multifamily end in the area, and continue to acquire multifamily generally in southern and central VT.

COVID-19 continues to hit the U.S. hard. There has been a lot of discussion as to what kind of impact, if any, the latest stimulus bill will have on tenants who are struggling to pay rent month-to-month.

We believe the stimulus bill will be a tremendous benefit.

Let’s break-down why the latest stimulus is great news for tenants:

1. A $25 billion emergency rental assistance program has been administered by the U.S. Department of the Treasury. These funds will be distributed directly to cities with populations of over 200k.

2. The funds are eligible for current or unpaid rent and utility payments (9 months of rent arrears; 3 months going forward) and other incurred housing expenses due to the pandemic. Assistance will be targeted to households that are below certain income levels.

3. Renters can apply for assistance from the administrative agency that is managing their program. Housing providers can apply for rental assistance on behalf of the resident, with their consent. Payments are sent directly to the housing provider.

4. Renters can receive an additional $300 per week in federal unemployment insurance and individual stimulus checks of $600 ($1,200 per couple and $600 per child).

5. The deadline has been extended in the CARES Act for states and localities to spend Coronavirus Relief Funds for one year. There will be an extension of the employee retention tax credit in the Low-Income Housing Tax Credit program. For more on the package, please visit the .

6. The CDC’s nationwide ban on certain residential evictions has been extended until January 31, 2021.

These resources, along with the emergency rental assistance, will be critical in helping renters meet their financial obligations during these trying times.

What are your thoughts on the stimulus and its effect on tenants? Tell us your thoughts in the comments!

We love VT as a high cap rate market (and NH as well). We invest up and down the state and focus on southern part are north of 60units. Most investors are focused on Burlington, which is a great market but cap rates are lower and its less landlord friendly + alot more competion from other investors, whereas large swaths of the rest of the state are replete with bargains.  Happy to provide any further color and also looking to partner with investors on a larger 100+ unit offmarket portfolio we have been working on shaking loose. 

For passive investors we typically include a preferred return 6-8% and IRR hurdles based on investor return. For example:

6% IRR = 100% Investor/0% Sponsor
6-10%IRR = 80% /20% 
10-15% IRR = 70% / 30% 
>15% IRR = 50%/50%

As of others have said in an appreciation market like Denver properties will not cash flow well as is, but you can typically execute reposition/value add strategies in these markets to give you higher returns then you could get in high cap rate/cash flow markets. For example, we have a 54 unit in contract at roughly a 5% cap in a developing area. Plan is to renovate, improve, increase NOI by north of 20% during hold and return 110% to our investors. This would typically not be possible in a high cap rate cash flowing market because the growth is not there.