All Forum Posts by: Nick Kurtz

Quote from @Nick Kurtz:

I have a new associate who has been in REI for 20+ years, and recently sold 300 units. He has syndicated a few deals and is creating a new one to build 40 units in Tampa FL. I see benefits but I'm trying to understand the full context of building this from ground up. I'm looking at putting money into it and recommending friends to put money into it so any advice is appreciated. The property has been drawn up and is permits are ready so it's just a matter of finalizing the cash for it.

I know Tampa area has been booming so it generally seems like a good idea. Here are two photos of what he gave me as a snapshot. I took out the LLC and contact info since I didn't ask if I could share it.

 too small. we stay in the single family, triplex, and then 150+ units and above 10 million in construction values to get to instittuuioal level capital and income. you need to underwrite 3 million dollar checks. he's probably raising from friends and families on his first deal but I wouldn't touch a deal with my own money without non recourse debt or a clear development plan and exit. I think 50-150 units is no mans land and we stick to institutional level sized deals. his underwriting is too simple. the unit mixes are off we only build studios and 1 beds for fast absorption, the deal is also under parked without a parking study. anyone who uses "roughly" in their analysis isn't sophisticated enough. we underwrite rent growth, asset growth, and a million other assumptions this wouldn't pass any people I know who invest in deals. get with a More experienced operator and read more sophisticated underwriting. 400k per door new construction is crazy. how much is the land? 

The main thing I have learned about syndications is that anything can look good in a pitch deck. You should be doing your most due diligence on the operator, the team, and the track record. 40 units in an opportunity zone could be a big win, but how many times have they done opportunity zone builds and have they worked with the city of Tampa before? This is where I would start.

@Nick Kurtz

Can you send me details for this project as well. I may be interested

Hey Nick, congrats on the leap! I'm in the Pasadena area. Perhaps we could get a coffee sometime and I can tell you about my journey inb REI since 2008.

 We have several STRs here in PCB. For insurance I'd say shop shop shop around. We personally have had good luck with Daffin insurance locally. Of course the newer the building the better. 99% of ours are new construction which you get big discounts for since they are up to all the newest building codes. Plus we do a few things to bring it down even more. Like metal roofs and impact windows. 

We've also gone through three different STR management companies and are very happy with who we are with now.

Let me know if i can help you any. 

Why is Easy Street Capital the best Lender for Fort Lauderdale Multifamily DSCR Loans??

👉Borrower-Friendly Terms vs. Banks!

✅30-Year Fixed Rate Debt (1st 10 Years IO Available)
✅Amortize on a 30-year Schedule (Lower Monthly Payments, No Balloons!)
✅1.15x DSCR Minimum (DSCR only takes into account tax and insurance expense!)

👉EASY Qualification!

✅640 Minimum FICO Score (Partners/LLCs OK)
✅No PCR or Phase 1 Required
✅No Tax Returns / No Income Verification

👉Ultimate Flexibility

✅Short Term Rentals / Unleased Properties OK!
✅Available in 46 States, Rural Markets OK (up to 65% LTV)
✅Full Spectrum of Prepayment Provisions, No Lockout Period!

5-Minute Web App for Multifamily DSCR Loans!

Free Article: Multifamily DSCR Loans: New Loan Option for Real Estate Investors

Have 112 SFH properties, portfolio......off market