All Forum Posts by: Ryan Tuttle

Haven't seen this done, to be honest. I've seen the reverse quite a bit in SF and LA, considering the amount of dated SRO inventory and Studio/1-bed demand. 

just curious, what returns are you seeing with converting a multiplex to an SRO? 

@David Sotomayor, 

PM me for that financial model

To echo @Alexander O., few of our clients have gone through SB9 for the unit add-on within LA county, but I haven't seen anyone do it for the lot split. Seeing it down south and in Easy/South Bay in NorCal. 

Where's in CA?

I'd recommend getting a HELOC before jumping on a cross. You'd hit better LTV/CLTV figures here as well.

Should you pursue a cross, clarify the partial release prices so you tee up an easy exit. 

Happy to forward a referral for the HELOC

With the built-up equity in your current portfolio, I'd recommend cross-collateralization via your purchase loan. 

To piggy-back, on your response to @Chris Seveney regarding bringing on a passive partner. You can structure the partnership so they receive distributions at certain capital events, i.e, lease-up, disposition, refinance. Your offering memorandum would dictate this. 

We do fair traffic in partner-buyout financing, so their is definitely a market there. 

I'd recommend researching equity waterfalls and LP/GP relationships to get more insight into this. Generally for larger deals, but no reason to not start early given your current rate of scaling. 

Feel free to PM with any other questions. 
 

Shadman, 

There are a few options here. 

Shoot me an message so we can set up a call.