All Forum Posts by: Percy N.

Come join us to meet your philadelphia based fellow investors and colleagues interested in Commercial Real Estate.

This is a networking session and we will be discussing future topics this group would like see at upcoming meetups.

@Steve Vaughan, in a way this is holding us back. I would like to have done 3x the deals.

@Henri Meli, most of our offers are on 150-300 units. We probably did 20 LOIs in just the past 2-3 months. There were times we were doing 4-5 a week. We even followed the listing broker's price guidance where it made sense, even came close (within $100K on a $22 million property) but it seems sellers have been unrealistic and in some cases want more than when they initially list the property.

Brokers call something "off market" when all it means is that they have not blasted it to everyone they know.

Finding good Multi-Family deals (100+ units) which average 16-20% IRR when underwritten conservatively is very hard.

We had to underwrite 100s of deals, send out dozens of LOI to get a 101 unit deal in the Dayton OH market.

Thinking about doing a blog post on the underwriting for large MF.

@Daniel Dietz, have you looked into Freddie's Small Balance loan?

http://www.freddiemac.com/multifamily/product/pdf/...

Congratz @Brian Adams. 

Keep me in the loop of that deal.

Its hard to find good deals these days. After a lot of efforts and countless LOIs, we are also in due diligence for a smaller but good looking 101 unit deal.

@Jacob Prelle, your title suggests (although does not explicitly state) that you would like to invest in larger multi-family deals. If you could provide information on the approximate size (number of units), location and whether you are looking for an active or passive investment would make the responses more focused and meaningful to your situation.

If you are looking to invest passively in 100+ units, my suggestion is to seek a few good syndicators who accept non-accredited investors or look at some of the crowdfunding sites (look here for more details - https://www.biggerpockets.com/forums/432/topics/38...)

If you want to participate at some degree, find a syndicator who you can add some value to and see if they will give you some small share of the GP partnership. This will also get you started on the road to do your own syndication sometime in the future.

Check with your legal and tax counsels and I am not familiar with CA laws but so have a few DE and other LLCs, so here is my take:

1. Asset Protection - Depends on the states you own the property. Not sure there is much more protection it would offer. 

2. Anonymity - Possibility. You can achieve the same and perhaps more by placing the properties in a Trust.

3. Tax advantages - For single member LLC, there should not be much if any difference as they will be treated as a pass through entity.

There will be a more paperwork to file and more fees (annual "shareholder tax", registered agent fee, etc)

If it is a multi-member LLC, then you will also need to create K1s.

Also keep in mind that most banks that issue Fannie/Freddie backed loans will not lend to LLCs (expect for delayed financing)

One area I do find some value in my LLCs is to give a more professional "business appearance" (for listings, collecting rent, etc) but I suppose you can also achieve that via a d/b/a a.k.a "fictitious" business name filing

Since property #2 is your primary residence, you should finance it as such with 3% to 10% down, no more.

Talk to some local banks that do portfolio lending and see if they will work with you to eliminate or reduce seasoning period.

For loan purposes, anything over 4 units will be considered commercial.

If this is an investment property, you will need a commercial LOC.

These generally have lower LTV and higher interest rates.