All Forum Posts by: Percy N.

@Ramy Nabil, when I was in Dubai a few years ago, we met with a group of investors in Dubai and Abu Dhabi who were interested in US real estate. Most were ex-pats looking at multifamily in the US.

@Jonathan G., we typically roll into another syndication as well.

@Jonathan G., as indicated above, it will vary not only on how the partnership is structured but also on certain deal level attributes like % of debt, amount of construction/rehab, etc.

In the past, our projects have ranged from 60-85% and I think one project even exceed the invested LP capital. 

Now remember that there will be depreciation recapture when the property is sold (unless you plan to do a 1031, etc).

You would make a capital contribution to the LLC. You may want to have 2 classes of units, one for sponsor (you) with voting rights and another for "Limited Partners" or silent investors. The cap table would track their capital contributions and the Operating Agreement would spell out how the cashflows would be treated.

@Louisa Davis, where in PA?

I would recommend going to the local REIA and networking.

If it is in the Greater Philadelphia area, send me a DM.

@Ruzanna Davtyan what size multifamily are you looking to buy?

For larger apartments (50+ units), the bank will want you to create a new LLC to hold the property only. Any partners etc would come into a JV entity. You can syndicate the JV entity (just make sure you follow all the SEC guidelines).

@Account Closed, the slowing of sales is a good time to buy, provided you can get financing and your equity in place (so it may be good for a new investor to partner with an experienced one).

@Jenny Beadle, as Geno said, it depends on the size of your portfolio.

For a few doors, you can even sign up on apartments.com (for free or close to it).

You probably want a professional property management system if you have a few dozen or a few hundred doors.

We have over 1,200 units and we have used Resman and Realpage for Property Management, each has a tenant portal for payments and maintenance requests.

@Alissa Hyder, RUBS = Ratio Utility Billing System in short you bill back the residents for the utility charges you incur based on a formula/ratio such as their square footage, etc. Some localities allow you to charge a fixed amount, while others do not. Most allow you to bill back 90-95% if you have some common areas. This can include water, sewer, electric, gas, oil, etc but check your local regulations.

There may be a thermostat option available that allows you to control the hot water valve coming into the radiator. In the "old days" there was a manual value you could adjust on the radiator.

What is the main driver for the replacement? Maintenance or costs?

If it is trying to keep your costs lower, implement RUBS and pass the cost of heating to the tenants from the next lease onwards. That will be your highest ROI.