All Forum Posts by: Percy N.

@Account Closed, are there companies in France that manage the AirBnB (booking, cleaning, etc) for you?

@Robert Gunby, if you are referring to the EB-5 visa (immigrant investor) program, there are a few key parameters which need to be satisfied, namely $1mil or $500K (in designated areas) AND employment requirements.

You can get more info at https://www.uscis.gov/working-united-states/perman...

Oh boy....ask 5 people and you will get 10 answers on this one.

We have seen everything from 4.5 to 7.5 depending on the area and class of properties.

Which submarket are you focused on?

@Account Closed in order to do a 1031 RE exchange from say a SFR into a MFR, it needs to be done as a TIC or DST.

Most large syndicators will not want to do a TIC as it introduces risk for the other LP investors.

There are only a few syndicators who go down the DST path, as it too has its complication.

So in general 1031 exchanges are not favored by most syndicators. I am looking into an option I heard about but need to research more before I can speak about semi-intelligently.

Troy, if you are looking for $6-$8mm, it sounds like a syndication would be your best bet.

Tony, you can hear Rod Khleif's podcasts if you are interested in self managing, though I would still get a professional Property Mgt company for the first year or two if this is your first time managing a large complex.

I second @David Thompson's post on vetting the sponsor.

However, as @Michael Bishop mentioned, I would look at how the sponsor underwrites the deal.

Are they being conservative in their assumptions (capex, rent increases, reserves, exit cap,hold period, refinancing, etc)?

Having invested in over 1000+ units, I have expanded my pool of syndicators (a form of diversification) and typically look at the above criteria in addition to sensitivity analysis around interest rates and exit caps. 

Another important criteria is how much of their own money are the sponsors putting in the deal?

As for finding a syndicator who has been through the market downturn, the reality is that there are very few who have while syndicating (did this term exist in this context in 2007-2009?) in the same asset class. There are very good operators who have not been through the downturn or were focusing on a different asset class then.

@Alisha Decoteau, if the goal is to do a syndication to purchase the property, explain that to the broker/seller. At the roughly $20MM+ price point for a 300+ unit, they will understand.

However, you may want to show them the experience of the key principals of the syndication, so that they are confident in your ability to close.

BTW, 300+ units is a pretty big complex. Do you have a budget from a property management company? Has your lender verified your underwriting?

Without these steps I would not put a LOI together for the property.

Also curious about your investment thesis on a property that does not cash-flow.

@Meredith L. do you have someone on your team who understands the local market and knows what the typical costs per unit for the asset class and size? How much are capex reserves, vacancies, improvements budget, rent increase potential,  etc? If not, form a relationship with a property manager and lender who specializes in the type of asset you seek.

Brokers and sellers understand that you may syndicate the deal. The last LOI we signed in a new market was submitted with a list of RE owned by key principals of the deal, so that the broker and seller can be confident in our ability to close. There is a little bit of selling to the seller (and/or their broker) by the buyer if in a new market.

Either sell to an investor who wants to keep them as tenants or vacate the property legally. Follow every step properly or it can get dragged out, depending on your state's tenant landlord laws.