All Forum Posts by: Snehann Kapnadak

@Daniel Desrosiers No I sold that asset. But they were solid in managing it at the time.

Oh okay, thanks @Alex Olson. Appreciate the insights as always!

Hi All,

Has anyone had experience with the MO Bucks program? It's the lending program that the state of Missouri offers. I know working with local and state governments can be a hassle sometimes, so would love to hear about people's experience on if the juice was worth the squeeze (if the low rates provided was worth all the effort).

https://treasurer.mo.gov/content/low-interest-loans/multi-fa...

Thanks!

You could have a referral bonus, where if someone in your network knows of another tired landlord and convinces them to talk to you, that you send them a gift card or something. That might work. 

But agreed with the previous commentor, unless you're trying to find deals from these tired landlords, targeting them to raise capital probably won't be the best use of time. Also if they're current landlords and best case scenario they decide to invest with you, they'll need to liquidate their investments before doing so, which could take a while before they can actually invest. You might be okay with that if you're playing the long game (seems like you've already had success with this niche), but just a thought. Good luck!

You could do it either way. #2 might be the more favorable and easier-to-structure option for you of course, but it'll depend on how willing your capital partner would be to cede equity to you for your labor/sweat equity.

#1 is how some of the institutions do it, where the GP (in this case you) has to meet the threshold of returning the capital of the LP (your capital partner) AND a return on their capital first before the GP gets any money. Ex. Say you & the capital partner agree to a 10% threshold on a deal. If they invested 100K into a deal, you'd have to make sure the deal nets them at least 110K back. Once they get 110K, they won't be entitled to anything else back (unless you structure it that way). So if the deal actually generates a 25% return, they get the 100K (their original capital) + 10K (10% return) and then you'd get the 15% above that.

Hope that makes sense but feel free to DM me if you want to discuss further. I'm looking to partner on small to mid-size multi deals in KC and these are some of the ways I've seen other operators structure their deals. Good luck!

Thanks @Dan Krupa. I’ll start there.

@Alex Olson thanks! I just DM’d you.

Hi all,
I’m looking for recommendations for insurance brokers in Kansas City. I’ve been hearing a lot about  the volatility in the insurance market with rising insurance premiums, weather, etc. And wanted to understand that more. Specifically as it pertains to small multifamily (5-10 units). Any recommendations would be much appreciated!

Building my team! I’m out of state but love KC, currently looking for a partner in the market who has experience with the construction side and who’s looking to get into small multifamily. Meanwhile I’m working on the other logistics: tax, legal, insurance, etc.

Hey Christian, few questions:

What interest rate are you paying the seller?

Not sure what you've seen from lenders in your market on long-term loans but I've been quoted between 6.5% - 7% for 30-year amortization at a 70-75% LTV. So you might be better off going with your credit union than to be saving 100-150 bps for a longer AM period and risking a lower LTV. Also some banks don't like seller financing, so you'd take a risk shopping this to the lenders that will offer 30 year AM.

What's your goal with these properties? Refi and hold long-term? In that case it may be better to take the try to find a lender who could provide 30-year AM since your monthly payment will most likely be lower. But again, if they give it to you at a lower LTV then your basis will increase and you may not be able to "pull out" as much cash.

I'd try to run multiple reports with these scenarios and look at them side-by-side and then make your decision. Good luck!

Thanks everyone! This was very helpful. Sounds like the market is poised for some growth over the next couple of quarters.