All Forum Posts by: Parker Stone

@Eduardo Calle, I'd be happy to connect with you. My team and I acquired a 54 unit in the Atlanta area earlier this year. 

Hi @Sandra Ibrahim. The concept of Opportunity Zones was created under The Tax and Jobs Act. In short, an opportunity zone is an area, typically 'distressed', that is designated by that the state to be eligible for preferential tax treatment.

A major key to the program that I've seen a lot of talk around OZs glide over is that, in order to qualify for tax breaks, 'substantial improvement' must be made to the property. An exact definition of substantial improvement from the IRS's website is below:

Property is substantially improved if, during any 30-month period beginning after the property is acquired, additions to the basis of the property exceed an amount equal to the adjusted basis at the start of the 30-month period.

Source: Opportunity Zones FAQ

For deal sponsors, what kind of waterfall do you typically underwrite your deals with - American or European? 

For LPs, which waterfall do you prefer to see in a deal? I'm assuming an LP would prefer a European waterfall because all LP money is returned and their pref is achieved before the promote kicks in, but curious to see if there's a different take on this.

Hey Nico, I would seriously consider involving a property management company that has experience with the due diligence process. There are numerous factors that could affect overall returns and a thorough DD process will help uncover these. Make sure your DD process includes, at a minimum:

• -A full property walkthrough, including every unit
  
• -Property condition assessment (PCA)
• -Environmental site assessment (ESA)
• -Roofing/Engineering/Pest/Mold inspections as needed
• -A Detailed scope of work based on the findings 

Happy to connect with you 1-1 if that would help

Hi David, I've never heard that before. Roughly how much debt are you looking for?

Hi Tyler, I've never used theses types of services, but I know there are several vendors out there now that specialize in 'contactless' or 'self-showings.' These might be preferable to a Task Rabbit which may not specialize in showcasing your apartment nor be as flexible.

Hi Adam, I would look at local ordnances and building codes. As you're changing the property type, I might involved a legal team that focuses on municipality regulation to make sure multifamily is allowed in that zoning district, the density you're planning for is allowed, and to understand the exemption process if needed.

@Peter Morgan, it's tough to say what would be best for your situation. I would recommend reaching out to mortgage brokers and/or lenders that operate in your market. I feel they would be in a much better position to walk you through your options in that specific region. 

@John Caleb Pavlus, depending on your goals and objectives, you might also considered a non-owner occupied equity line of credit. From what I recall, Penfed (link below) had a higher LTV and more flexible terms than most lenders.

https://www.penfed.org/home-equity-center/10-20-home-equity-line-of-credit

Hi Dane, I'm not sure what the price difference is, but CoStar also has CRE info. Otherwise, like you mentioned, you could try using a site like ListSource.com to build lists.