All Forum Posts by: Nick B.

Hi Nick, I've been reading for a year now that multifamily new construction has ground to a halt due to rapid increases in construction costs, insurance costs, financing costs and also due to mass overbuilding in 2019 to '23, causing huge supply in 2024 and 2025, which is now putting downward pressure on rent growth? and that the relative supply will drop precipitously, after '25 leading to a new golden age in multifamily by 2026 and 2027. What have you been hearing or reading? and have you invested in any MF recently. I want to invest in MF syndications but not too soon at high current prices. thankyou

Hey Paul,

last time I invested in MF syndication was in 2022.

I paused after that because any "deals" that came to me did not look like deals at all. They were based on assumptions that low floating rates would stay low forever and so would cap rate compression. Even when the rates went up higher, many syndicators still anticipated for them to go down in a year or so.

I don't expect things to change for the better any time soon.
People who buy now say that the market has bottomed but I don't believe them.

So, I stay out of any new MF deals for the foreseeable future.

Of the deals I invested in 2021-22, at least one is heading for foreclosure and 3 more are getting close to the rate cap expiration that may trigger a foreclosure as well.

2 Votes

Dallas, Texas

I invested in a new apartment development in DFW at the end of 2019.

Then Covid happend. The prices of everything went up. The project was delayed and re-budgeted. Then interest rates went up...

Long story short, it was foreclosed in the beginning of June this year resulting in a total loss to investors like myself.

0 Votes

Dallas, Texas

Quote from @Rigoberto Torres Meza:

Quote from @Nick B.:

Find a realtor who would be willing to make you an unpaid assistant. That'll give you a "read only" access to MLS.

You may actually help that realtor with something in exchange for MLS access.

Aside from bringing properties that I want to buy to these realtors, what else can I do?

That's something only you can answer :-)
In my case, I managed a website for a realtor.

0 Votes

Dallas, Texas

Find a realtor who would be willing to make you an unpaid assistant. That'll give you a "read only" access to MLS.

You may actually help that realtor with something in exchange for MLS access.

4 Votes

Dallas, Texas

@Jay Ben

There is no list but you can always do a reverse due diligence:
- Find several apartment complexes that fit your investment criteria (e.g. location, size, vintage).
- Check public records for ownership.
- If a property is owned by a company, look up that company on Corporation Wiki, Open Corporate or similar websites.
- Find key people.
- Lookup those people to see if they also run some kind of investment or private equity company.
- Find the company website and send then an inquiry if they take investors.

On a second thought, why do you insist on NY or LA?

3 Votes

Los Angeles County, California

Quote from @Jessica Harrison:

Sure!

I had a client purchase a small commercial property in a suburb of DFW in the fall of last year. Contracted price was $770K. We negotiated almost all of the necessary repairs to be completed before closing, but had some of the repairs credited at close. With 25% down and all of the seller credits, my clients brought $178,297 to the closing table.

Thanks! Was that an apartment building? If so, how many units and when was it built?
Did your client used their last $178K or did they had at least $50K liquidity after the closing?
BTW, lending terms in the fall of last year were much more favorable than now. At least for multifamily.

0 Votes

Quote from @Jessica Harrison:

Quote from @Nick B.:

Quote from @Jessica Harrison:

Quote from @Nick B.:

Quote from @Jessica Harrison:

I would buy small, value-add, commercial deals - 10-15 units in great markets like DFW.

You need to double or triple that $200K for 10-15 units in DFW

Not if you get a loan. You can get a commercial loan at 25% down. I have clients who have purchased value-add commercial deals in DFW for less than $800K. It's totally possible!

How many units, vintage, location? 25% down may be too low in the current lending environment. Fannie and Freddie require 30%+ equity. Also, don't forget about rehab, operational funds, and reserves. Those are needed in addition to the down-payment.
That said, there people who scraped everything they have and bet it all on a single deal. So, it may be possible but is it prudent?

Sure... All of those things need to be taken into consideration when looking at a real property. There are local banks that will hold the commercial loan and have various loan ratios they will use. The question was what would you do if you had $200K to invest... all I'm saying is that I would look for small commercial deals. And it is possible with that amount- i have clients who have done it within the last few months.

Could you please give an example of such a deal with numbers?

0 Votes

Quote from @Jessica Harrison:

Quote from @Nick B.:

Quote from @Jessica Harrison:

I would buy small, value-add, commercial deals - 10-15 units in great markets like DFW.

You need to double or triple that $200K for 10-15 units in DFW

Not if you get a loan. You can get a commercial loan at 25% down. I have clients who have purchased value-add commercial deals in DFW for less than $800K. It's totally possible!

0 Votes

All Forum Posts by: Nick B.

Nick B. has started 47 posts and replied 1101 times.

Post: Starting a Syndication at 21 (NEED ADVICE)

Post: Building a new D Class Property?

Post: Who here invests as an LP in ground up multifamily construction deals?

Post: Who here invests as an LP in ground up multifamily construction deals?

Post: How to obtain access to the MLS without a RE license

Post: How to obtain access to the MLS without a RE license

Post: How does one find a syndication in his local market?

Post: 200k!?! If you had it in cash how would you invest it?

Post: 200k!?! If you had it in cash how would you invest it?

Post: 200k!?! If you had it in cash how would you invest it?