All Forum Posts by: Mano Chidambaram

After my tenant moved out after his year lease on my 4/2, 2000 sqft, 100K property in Indy, here are the make-ready estimates I got from the PM for the larger items along with a few other minor issues:

1. Paint assorted walls & entire rooms - $775
2. Carpet cleaning (tenant already cleaned the carpet & produced receipt, but the carpet is not clean enough) - $250
3. Replace laundry room vinyl floor, since badly stained - $650

This property was completely rehabbed just over a year ago before the tenant moved in, so these issues don't seem to be normal wear & tear within a year.

What is an "average" make ready costs that others have seen? What of these costs would you go back and hit the tenant for?

Thanks in advance for any feedback

Thank you @Kim Lisa Taylor for your insight & explanation. Appreciate everyone else's input on this topic. Will reach out directly with some of the folks to further discuss this in detail

@Brian Adams Great job. Congrats!! Those are some awesome returns in such a short time frame

Thanks again for all the input. 

@Jay Hinrichs You bring up an interesting option, but it does sound more like the "blind pool" option. something to look into

@Jillian Sidoti Appreciate your detail response.  Bottom line looks like, if you want to raise capital for other's syndications, without a securities license, you need to be part of the GP with additional responsibilities besides raising capital

Thanks everyone for the quick response. Appreciate it. 

@Ivan Barratt I think the 3rd option you are talking about sounds more like the "blind pool" that I was trying not to do, but I might look more in to it

Since I am not connected with them yet, appreciate if anyone can tag these SEC/legal folks if they are connected with them: @KimLisa Taylor, @Jillian Sidoti or @Amy Wan to hear their thoughts.

Through the years, I have built a network of high-networth, accredited investors who are interested in diversifying into real estate. I have passively invested in several MF syndications & have done a ton of research but have not done a syndication of my own, yet. Something I might consider in the future.

In the meantime, I am trying to figure out the best way to help my network deploy capital

One option, I am considering is to start an investment group, where I partner with different syndicators, to help raise capital for their syndication by leveraging my network to raise the required capital. I am not looking at creating a "blind pool", but more specifically to partner with different syndicators in different niches & raise capital for their specific offerings & get compensated for raising that capital

Can this be legally done? If so, what is the right way to go about doing this? How would you structure the business?

Appreciate any input, especially from some of the SEC legal folks like @KimLisa Taylor, @Jillian Sidoti or @Amy Wan

Thanks in advance for any advice

Hi Folks

One of my tenants has a lease ending 11/30/17. He is looking at buying a house and has inquired about whether I would be interested in selling the property. If not, he has another property in mind and was wondering if he could go month to month after lease end for 1 to 3 months

I am not planning to sell the house but had a couple of questions:

1. Are there things that folks have done to entice renters to stay longer?
2. Do you typically charge higher rent for month-to-month and if so, what percent higher?
3. Any other concerns of allowing him to go month-to-month vs. just getting another tenant on a year lease?

Thanks in advance for any feedback.

Mano

I believe both are correct, but if you are trying to figure out the offer price, then as you mentioned, take the "actual" NOI & divide by the going cap rate to arrive at the price.

BTW, what market are you finding these 4-plex? Curious...

After checking further, syndications typically don't seem to want to use promissory notes, since they are looking for equity partners not lenders. I agree with what folks have said, that UBIT is not necessarily a bad thing, but you definitely want to take that into acct while analyzing the deal to make sure that after-tax returns are still what you are looking for. 

Here is a question for folks who have experience doing various investing strategies through the years. I do understand that these strategies span the gamut of totally active to totally passive participation. If you are capable of investing in any of these strategies, purely from an overall return perspective, which one of these strategies, i.e. SFR, multi-family/small apartments, investing in Syndications, mobile home parks, notes, etc. have folks seen the best bang for their buck? Thanks