All Forum Posts by: Percy N.

Find a contractor you can trust and who can manage a crew at multiple locations.

At some point, in order to really scale, you may want to look at Multifamily vs SFR.

With larger Multifamily, you can afford to hire your own crew and leasing staff.

Of course, this comes with the need to scale your skills, infrastructure and capital raising ability as well.

@Hunter Terryn, Burmingham is not bad but for rental real estate to excel, it needs strong job growth and low inventory.

We own several apartment complexes in Huntsville that has great job growth.

I know of 2 apartment complexes that were struggling a bit in BHam (could be the market or the operator).

How large a deal are you referring to?

For 100+ unit multi-family, forget about wholesaling it unless you have $250K-$500K to put down to place the property under contract and can convince the broker or seller that you can secure the financing (typically $15mm-$20mm) and have an established record.

May be possible for smaller deals (say under 20 units).

Depending on the size of the property, there are consultants (for large apartment complexes) who do a tax analysis.

We do that in states/counties that have aggressive tax increases (e.g. TX).

Same for insurance - get a quote for what the lender will require.

Assuming the current syndication had an LLC that was the direct owner of the property (on the deed), then that entity is the one that needs to 1031 to the new property, not you as an individual.

As for whether a new PPM is required or not, that is a question for a SEC attorney.

I think greater than 75 units is common.

We repositioned a 88 door hotel (extended stay style) to an LW community with a shared workspace, large clubhouse, etc.

We are also under contract for a new development mixed use community.

@Ron Singh - commercial loans have many variables, interest rates only being one of them.

Layout your strategy for the property first (hold period, rehab amount, etc) to pick the best option.

Many commercial loans will have a floating rate or will require a defeasance or exit fee.

Many lenders will also require a Key Principal(s) whose collective net worth is close to the amount of the loan and have 5-10% liquidity.

Price out the loan from acquisition, construction draws, to sale, with all the fees and reserves included while doing your shopping.

@Ammar Ali there are several HUD programs, which one are you considering?

Are you considering HUD loans, HAP Vouchers, LURA, etc?

In most state you may an EMD but for single-family (4 units and under), it is generally contingent on a clean inspection, title, financing, etc.

Be leary of anyone asking for a non-refundable deposit for SFR, especially if they want it paid to them and not a title company, attorney or realtor.

For commercial properties (5+ units), it may only be contingent on a clear title and a DD inspection (for which you get 30 days), after that the money is "hard".

Apps seem to be the latest way to accept payments and it provides increased transparency to the transactions if you are using a 3rd party servicer.