All Forum Posts by: Shane Thomas

Hey @Arun Nayar,

Yes, we are hosting our 2nd meeting on Saturday July 14th in Sugar Land. You can find our information and sign-up through the following link. I've sent you a PM as well. Hope to see you there!

https://www.meetup.com/Apartment-Investor-Mastery-...

Thanks!

See you Saturday @Douglas Delgado!

No problem @Andres Osorno! Join our meetup group so that you are informed of future events. 

No problem @Brittany Villamil. We will have this monthly going forward. Join the meetup group to be kept in the loop.

@Douglas Delgado...Yes, I think you would benefit from the meetup. We will be focusing on multi-family and it could give you a different perspective on how to get started in real estate. Many of the folks in attendance started outside of multifamily and you'll be able to connect with them. 

Sounds good @Ryan Deasy! We plan to have these monthly so join the meetup.com group to receive communication on the next one. Thanks! 

We are hosting the 1st multifamily specific meetup in Sugar Land this coming Saturday, May 12th! This is a free meetup and is welcome to all individuals interested in multifamily, whether you have experience or not. There will be many experienced and new investors in attendance. 

Our goal of the meetup is to raise awareness on how anyone can get involved in multifamily and get on the path to financial freedom. The first meetup will be an introduction to multifamily and we'll share our 3+ years of multifamily investing experience. At future events, we'll bring key local guest speakers like brokers, PMs, etc. to share their insight.  We look forward to bringing together like minded individuals looking to network in the multifamily space!

Please register for the 1st meeting at: Multifamily Meetup - May 12, 2018 Sugar Land

Please register for our meetup group at: Apartment Investor Mastery (AIM) Sugar Land, TX

We look forward to seeing you there!

Thadwa,

What type of asset classes are you looking to invest in? Multi-family, self storage, office, etc? There are many groups and meetings you can find on meetup.com 

The first thing I would recommend is getting educated on the type of investment you want to pursue. Then make sure you vet any potential deal sponsors and ensure your comfortable with their track record. 

I focus on Multifamily in Houston. I know of a few good groups in town. Private message me and I can share those details.

Shane 

Not there yet @Lane Kawaoka, but working on it! Appreciate all your posts and info that you share - keep it up!

Chris,

There are a few Apartment Investor Mastery (AIM) meetups in Houston. One in the Energy Corridor and another near the Galleria. You can find them on the meetup.com app. I know the hosts personally so send me a private message and I can make an introduction. Ben Suttles and his team also host one downtown. 

Shane

Key Principals (KPs) are also known as Guarantors and is a term used by Agency lenders (Freddie Mac and Fannie Mae) on non-recourse commercial loans. Although agency loans are non-recourse, there are certain "bad-boy" carve-outs (e.g. misrepresentation, bankruptcy, etc.) that could grant the agencies recourse against the KPs. There are a number of criteria to qualify for a agency loan but 3 major ones are past experience, net worth of KPs > loan amount and some liquidity threshold.

Typically, the sponsors of the deal are automatically considered KPs and usually they have the past experience but sometimes don't meet the net worth or liquidity requirements. In such event, KPs can be added to help the sponsors meet the requirements.

In most deals I have been involved in as a passive, non-sponsor KPs do not have an active role in managing the asset. The KPs are typically passive investors. In certain cases, KPs could be compensated for what they bring to the table and in other cases they may not. Sometimes sponsors meet all the requirements but still bring on KPs so that the KPs can get "agency" experience, which will help them when they sponsor their own deal and apply for a loan. In the end, the structure of how KPs are used and compensated depends on the situation. However, it is important for KPs to understand their role and potential risks (due to the carve outs) and should certainly understand the business plan and track record of the sponsors they are working with.

I hope this helps. 

I think it depends on the location and the condition of the property. I was almost under contract on a 6 unit in Lockport that was an estate sale and very well maintained. It was the only MF property surrounded by SFHs so the low supply of MF made it attractive as well as the fact that it was only a few blocks away from the Metra station.

On the other hand, I looked at 6-unit in Joliet in August and although the property was in good shape, the area definitely was questionable. Also, Joliet has been hit with job losses in manufacturing that its upside seems limited. From a pure cash flow perspective the property had potential but the seller wasn't negotiating on price. 

I agree with Nathan in that you really need to have good knowledge of the exact neighborhood your planning on investing in.