All Forum Posts by: Tj Hines

BP family,

I'm having just a small hangup on classifying apartment buildings. I've been taught and learning that:

Class A apt buildings  are 10 years older from today's current year

Class B apt buildings are 20 years older from today's current year

Class C apt buildings are 30 years older from today's current year

Lately as I have been networking with brokers in my target markets some of them are classifying a building built in 1980 as a  Class B building and Class C building built in 1960-70. Is it me or are those numbers off compared to the traditional way of how to classify apartment buildings? 

Are there any other parameters that I'm missing here in making sure I'm classifying these buildings the right way?

Thanks

@Stephanie P. will do thanks ...

As I've been networking with brokers in regards to purchasing multifamily units. I've been asking them for referrals hoping to land decent reputable property managers for that area. The majority of them I have spoken with didn't have any referrals to give me. What is the best way to interview and recruit reputable property managers who are experienced in managing 50 plus units ? Thanks

Doug Martin you definitely want to invest as much time as you can in your education. Maybe even get a mentor in the aspect of real estate you are interested in. If not any and all info you hear will just fly over your head. That's the last thing you want because then you become susceptible to that person as well as market conditions. In my opinion investing passively in multifamily 50 plus units apartment complexes has easy scalability with the right systems in place and if purchased right at the right time in an emerging market will increase your chances to easily achieve and or succeed that 20k a month in passive cash flow. I'm in Tampa as well. Love to assist and share what I know. Good luck.

Andrew Cushman thanks for clarifying again

Andrew Cushman thanks for clarifying

@Carlos Flores thanks for the insight.

@Account Closed if possible can you go into more depth about "supplemental" and how that differs from a refi cash out? Thanks for your time and consideration

@Michael Le Yes I understand that major improvements need to be identified upfront before the acquisition takes place. I guess wasn't clear enough with my question. Sorry. But you addressed it anyways. I meant for ongoing repairs after we acquire the property once all the major improvements have been done. So having those reserves are key for each unit. I see how the word promise can probably lead me into trouble. Thanks for clarifying.

@Andrew Cushman So your saying that I should take care of ongoing repairs out of the positive cash flow we receive and then disburse the remaining funds of whatever is left over to investors?... Of course if this is in the agreement of what my responsibilities are.

If I was to use the cash flow for ongoing repairs, what would the reserves be used for?  Yes, I totally know that the major renovations will be calculated upfront before the acquisition. Thanks for reiterating and clarifying for me.

If I'm looking to acquire an 100 unit apartment building with the plans of of refi cash out at year 3 or 4 returning all member capital and then resell maybe in year 6 or 7, from your experience what type of commercial loan would fit this exit strategy?

And or,

If I'm looking to just liquidate in year 4 or 5 with out refi cash out what commercial loan would be good for this model?

Thanks in advance for your consideration

Let's say if I have a 100 unit multi-family building and I'm partnering with 4 or 5 investors who is helping fund the deal. When it comes to repairs that need to be done to the building, is the money to make the repairs coming out of the cash flow that me and my partners are receiving each month?

Also how do let my investors know after they already have been promised a certain percentage of cash flow every month that repairs need to be made to the building whether it be minor or major? 

Is there some upfront agreement that needs to be made disclosing to the investor partners how repairs will be paid for ?

Thanks for your consideration.