All Forum Posts by: Russell Beach

Hey Chase. Side track....who are you using to get 100% LTV HELOCS?. I've got a cash flowing STR in Wintergreen that I'd love to pull back out $150k+ to put elsewhere.

@Charles Seaman. Great thanks again.

@Charles Seaman. Thanks so much for sharing your insights. Very valuable information.

One more question, did you develop your own underwriting and syndication model or purchase one? If the latter, how much would that cost?

Thanks again.

Russ

To those who have been GPs in multiple apartment syndications.....

1. What were your first 3 or 4 payroll positions you added to help execute your syndications business?

2. How many syndications did you execute before hiring these positions? Did you do the first deal without any support?

3. For your first 2 or 3 syndications, what % of the raise was from you personally?

4. Did you take on a guarantor to secure financing? What was their fee?

4. Did you jump into a 506(c) on your first syndication or did you take on "sophisticated" investors and do a 506(b) exemption?

Very serious about moving into my own syndications and have really found a lot of value in all the posts about syndications here so far. Thanks in advance!

Thanks everyone for helping with a mindset shift on this one. I submitted the LOI yesterday am. We'll see what happens.

@Kim Meredith Hampton. Thanks for the reply! Wow, 2-3 months could be painful when all 12 units are Sec 8. I'm assuming they would back pay me for those 2-3 months?

I'm considering putting in a LOI on a 12 Unit apartment in Virginia where all the tenants are Section 8. I have underwritten the deal and looked at rent rolls and T12 and last operating statements and it cash flows very well. About 15% cash on cash. The rent rolls didn't reveal all 12 tenants were section 8, but it came out in some broker conversations. All of the tenants are long term tenants as well----5-10 years. This Section 8 revelation has me taking a pause.

My questions to those who've apartments that were already very heavy with Sec 8 tenants:

1). How hard is it getting approved as the new owner/landlord to accept Section 8? Should I budget for a pause in these 12 tenants' Section ACH payments after closing? If so, how long?

2). Anyone have experience in which the Section 8 inspector comes down hard in the new owner to make capex improvements prior to getting approved to be a Section 8 landlord?

3). Would you require a property manager to have extensive Section 8 experience?

4). Any other concerns or blindspots here?

Thank you in advance!

Nice work!  Thanks for sharing.   How long from closing till refi?

@Stephanie Medellin  Great suggestion.  The seller is actually willing to finance the whole deal (minus rehab of course and 20% down), but after meeting with him personally I'm not inclined to carry on a post-closing relationship.  This has been the seller's "hobby" for a number of years, he's got a personal/emotional attachment, and he doesn't think anyone (professionals included) will be able to run the place without him.  He's actually a great guy, but I'd see seller financing as his way to babysit the property and make my life miserable.     But, you bring up a good point.   Could I get him to do seller carry on 15% and I bring 5% + rehab costs?   Maybe he's less inclined to give me heart burn post closing if he's had a liquidity event and has much less exposure in the deal.

I've got an opportunity with an off-market 25 unit multifamily. It's in a smaller market--one that I've not invested in previously. Price is around $1.25mm. Needs about $135k rehab to bring several units and grounds up to comps in the area. Once that happens, rents could be raised 15-20% and still be low end of comp range. ARV would be in the $2.0 to 2.1mm range. And I'd shoot to refinance within 12-18 months.

I do have the personal liquidity to cover 20% down and the rehab costs but I'm trying very hard to limit how much of my money I put into this deal (retaining liquidity for future opportunities).    I'm having troubles finding traditional and hard money lenders that would be willing to fund with less than 20% down---even a bridge loan at higher rates and increased points.  I've shared my underwriting and personal balance sheet with several lenders---and messaged about a dozen more lenders that are frequent posters on BP.   The smaller market also seems to be an issue with at least 2 lenders.

Any suggestions?   Thanks in advance!

Russ.