All Forum Posts by: Percy N.

@Shimmy Yose, PM me and I can introduce you to some commercial lenders in the area.

Also, if you want to go bigger, we have a 284 unit deal closing in Houston soon and can share what that looks like compared to smaller properties in the area.

I started with the smaller properties too, but wish I had switched to larger properties sooner.

@Bernard Obrien, we did a presentation on large multifamily / apartment complex due diligence for a local RE meetup.

PM me and I can share a copy

Yes, Home Depot has a bid room for Pro accounts and anything over I believe $2500 can go through the bid room. We are picking finishes for a 284 unit deal we are closing in a few weeks and looking at ordering via HD Supply. Some items we may source directly from the manufacturer in China.

Jared Carpenter , PM me your email address. Are you doing a 506c exemption?

@Snehann Kapnadak how large is the property (units)?

Your LOI will have to state the amount you are planning to put down as a EMD within 2 days of signing the PSA.

This is typically around 1% of the purchase price.

You will also need another 0.5-1% for out of pocket expenses before closing.

For a $20mm property, that is about $300k out of pocket before closing.

You of course also need the credibility to be able to get the property under contract and the ability to close thereafter or kiss the  money you put up goodbye.

What price range? Did you try the Small Balance loan if under $5mil?

Peter Grote what size properties are you looking to underwrite and what is the intended use of the output? Michael Blank’s deal analyzer is good for up to 150 units or so and non institutional investors. Above that you will need something more sophisticated.

We have limited spots left for accredited investors looking for passive investment.

High level overview of the deal:

• 284 Units across 2 portfolio properties
• True off-market Value add deal
• No hurricane/flood damage
• 9 - 11% Cash on Cash
• 16 - 18% IRR
• 1.9 - 2.1x equity multiple

Please email [email protected] or visit http://penncapitalgroup.com/opportunities for more details.

This opportunities is meant for accredited investors only.

Installing special equipment may not be worth it for smaller properties. Can you split a % based on number of tenants or unit size? Some states do not allow this.

In our pro-forma, we plan for about 2 weeks but try to turn them around in less time (say 1 week).

Hire a separate external resource for cleanings, flooring and sometimes painting.