All Forum Posts by: Przemek Kos

@Ko Kashiwagi

Aggregate Purchase price for the 5 properties is 800k, 10 cap, so healthy DSCR.

Gotcha.  So essentially, this product does not exist.  Thanks Chris.

Hello,

I am looking for a lender who can lend on a portfolio of small home (5 duplexes) to an LLC, but without requiring a personal guarantee. Assuming ~9% cap, generally no issue to qualify for DSCR, but I am finding that many DSCR loans require personal guarantee in addition to my LLC being liable. I am wondering if there is any product that would solely underwrite the property and not look to me personally for guarantee. Looking for someone who can do this in North Carolina, but down the road other states as well.

Regards,

Przemek

@Ryuji Mori

Similar boat as you - only had one that stopped paying, but recently received ERAP (inherited tenant). Part of my luck I guess has been buying in strong school districts and mostly B type property, I feel I would have gotten burned more if it was C type.

Agree with you on approach, I have been strict with application requirements and have a high bar on credit score, etc. My one worry in this area is that a law passed that doesn’t allow credit score to be taken into account, and there have been some proposed at the state level (so far nothing has passed).

Still on the fence about what to do going forward. What are you targeting? (Property type/ location). I have (so far) done small multi families (2-4) in the Orange County are, have looked at a couple in weschester.

@Ryuji Mori

What is your overall take on the trajectory of rental laws in NYS (possible good cause eviction law statewide)? And what are your thoughts on further extension of the moratorium?

The above had me pause. I really had high hopes in NYS but things are changing quickly (and all in the wrong direction).

I am in Orange County.

@Chris Levarek, @Evan Polaski thanks for the input, very eye opening to a newbie in this space.  And thank you for the additional links.

Thanks guys, appreciate shedding some light on this. Acquisition Fee aside, I have been focusing on the Waterfall related sections of the PPMs, here is one I came across I that thought was a red flag. The sponsor had a refinancing target upon completion of the value add projects at the property, but what was interesting is that any distributions from a potential cash-out-refi would be split 70/30 with the sponsor, irrespective of whether the 8% IRR hurdle was met or not.

Things like these demonstrate a huge misalignment of interests between the sponsor and the LPs, I can't imagine this is common.  Is it?

@Richard Neuharth

2% seems totally reasonable.

Some of the ones I have looked at are popular in that they have their own podcasts, so maybe easier to reach and available to a wider audience and therefore are just capitalizing on supply/demand mismatch.

Hi All.

I am a small time investor with just a few properties here in New York. I think I am at a point in my professional and investing career where I do not want to increase my exposure to New York, I also don’t feel comfortable to seek investments out of state by myself (perhaps with a partner).

I have come across a few syndication sponsors, mainly the guys who have podcasts and looked at a few PPMs and reviewed their presentations. Found a few that charged an arm and leg upfront (5.0% origination fee on commitment and in some cases collecting carry before full principal is repaid along with a hurdle in the payment waterfall). So needless to say those have been red flags and I didn’t pursue those. Or maybe I am looking at this incorrectly and 5% upfront is very much in line with industry? Obviously sponsors should be paid an upfront for the work they have done in bringing the deal, but I am still having a hard time with a 5 point fee day 1. Would prefer something where the incentives are more aligned and tied to long term success of the deal.

Where do you typically come in contact with out of state sponsors and investors? Thanks.

Regards,

Przemek

@Vinh Tran

Fellow New Yorker! I am looking about an hour south of Tampa, in Sarasota and it’s nearly impossible to get your hands on anything. I am primarily looking for small multi family, but so far, no luck!