All Forum Posts by: Percy N.

@Clayton Cerer, is this for a syndication or a fund? What is the size of the raise and how many investors do you anticipate?

As other have mentioned, the SEC attorney does not need to be local, but if you want, I have a recommendation for a Chicago based attorney who does funds/REITs. Not cheap, but in line for what you would pay for legal for those types of entities.

@Jason Leak, there is no "right" answer in negotiation, since it depends on the position of the buyer and seller. However, at the end of the day, the seller is getting 97.5% of the contracted price, so I would not expect them to push back hard unless the $15k is an outrageous number for the required safety fixes.

How old is the building? Have you checked with the local authorities on any outstanding code violations?

Did you review a proper T-12 and what does the occupancy show on that?

@Matt Moylan, please send me the info on the webinar.

Good topic @Matt Moylan.

Have you seen this work when the lender requires a low deductible such as $25k?

Investment Info:

Large multi-family (5+ units) commercial investment investment in Huntsville.

An 88 unit apartment and former hotel in Huntsville, AL (Rocket City) to be extensively renovated as modern townhomes and corporate housing.

For accredited investors only.

How did you find this deal and how did you negotiate it?

Off-market based on relationships we have in the area.

We also own 458 units adjoining this property.

How did you finance this deal?

Bridge financing for the construction period.

@C Loston welcome to BP.

There are a bunch of BP regulars from the Philly area and some of us from Montgomery county too.

I would recommend looking into some of the REIA meetings especially DIG to meet/network with fellow investors (newbies and some experienced ones).

First, as @Greg Dickerson mentions, educate yourself.

Decide what type of investment you want - passive or one where you play an active role (or where you fall on that gradient).

Depending on the above, your path will vary a bit but start reviewing all the deals and PPMs you can.

Review at least 50-60 deals before making your first investment. This will give you a sense of what the common themes are and what may differentiate a better opportunity.

Lots of information on BP and other sites.

PM if you have any specific questions I can help answer.

@Caleb Bryant, yup - new roofs, windows, fencing. New paint and signage coming soon.

The train wheels are in motion as the last few investors join the project - all aboard !!

@Vernon Trice III where exactly are you based and what is your CV/experience you have (your profile is blank)? How how much time do you have available? 

We have over 500 units in Huntsville undergoing renovations with other projects in the pipeline. Feel free to send me a PM.

First, make sure there is demand in an area with a population of 7,000. If there is, great!

What does your underwriting show? How much cash flow is there to cover the pref? What happens to the remainder? Is it split pari-passu, in which case you may get some cashflow?

How is the additional construction being funded? 

A typical syndicator does not get a 50/50 split, so the promote splits seem to be in your favor, even if you were to factor in the typical fees.