All Forum Posts by: Percy N.

Stephen Kleyn , I would ask myself what you are looking to get from a coach. There are plenty of free or inexpensive online resources these days. Are you looking for someone to walk you through the process and act as a sounding board or do you want to be part of a group that also sources deals and provides a network of investors? These are very different requirements and groups. Of course the best IMHO is real life experience by partnering with a sponsor or at least doing a few passive deals.

@Alex Alleva, is this an investment property?

If so, check with your accountant if the $10k deductible limit still applies.

https://ttlc.intuit.com/questions/4144891-will-i-still-be-able-to-deduct-property-taxes-on-my-rental-property-under-the-new-law-if-i-already-reach-10-000-salt-cap-deduction-through-personal-home-property-tax

@Anwar Abdul-Hadi, there are many good articles and posts on BP regarding syndications.

As with any asset type, there are pros and cons to evaluate to see if it is right for you.

@Mike Snyder, I think the general range of 12%-15% with 2 to 4 points is in the right ballpark.

However, be very leery of "lenders" approaching you online offering "great" terms, especially if they require a "deposit" up-front.

Genuine lenders do not require up front fees other than a minor amount for say an appraisal or BPO. All other fees/points should be paid at closing via your title company.

Just a reminder.

It's easy to envision what you would do if everything goes according to plan. I would recommend spending much more thought on what happens if things don't go according to plan. Come up with a risk mitigation matrix.

@Ray Li, the concepts may be similar, but the experience you gain on a small (under 20 units) MF will not translate well to a larger (over 150 units) one.

Having done both, I can tell you the economies of scale come into play around the 75 unit mark (in middle markets).

PM me if you want some examples with actual numbers on a 101 unit and a 284 unit property.

@Heidi Kloeer is right on.

However, there are surrounding areas where the townships are more investor friendly, school districts much better and thus a slightly better rental base (families), if you ask me.

I owned a portfolio of SFRs in this township and still have a few but have been moving towards larger apartment complexes in out of state markets.

PM me for details.

I know portfolio banks and bridge lenders will cross collateralize the properties but not sure about Fannie/Freddie. The term sheet I just got from Fannie on a 101 unit deal specifies that the entity needs to be a single asset entity.

Rich Thomas , as you may be aware, you cannot 1031 a property into a syndication (with a few exceptions) You can do a Tenant in Common, but the other investors and syndicator may not want that.

Colin Stuart get proformas from Property management companies and compare it to yours. At 50 units you may have to think about full time maintenance person and maybe a part time leasing person. What is your advertising, signage and insurance budget? What capex reserves does your lender require? Will this be a recourse or non-recourse loan? Have you looked at the small balance program for the loan? Many other things to consider...