All Forum Posts by: Snehann Kapnadak

@Randy Smith thanks, that makes a lot of sense.

@Steven May, thanks for the insights. Looking forward to reconnecting.@Steven May

Thanks for the advice @Randy Smith. I bought a turnkey single family in 2017 as well and it did well, but I'm definitely interested in finding good partners and scaling into multifamily. Definitely will continue following your content.@Steven May

@Alex Olson Thanks! I'll review your videos and will reach out for sure.

@Brandon Carlson Great, let's connect sometime. I'm looking mostly at the Northland, Blue Springs, Independence, and Grandview. Primarily the MO side but open to the KS if there's a good opportunity. What about you?

Love your posts @Randy Smith! They're super informative and helpful. I'm curious to your thoughts on the importance of the Equity Multiple metric? I feel like passive investors would want to know what multiple they'd earn on their cash during the hold period. But at the same time the metric is limited because it doesn't help to compare returns from real estate to those of other asset classes like an IRR does.

I think the EM also does a good job of showing what the return on capital is after the return of capital. Like if you invest $100K and I distribute 10 payments of $10K back to you, nothing really happened (technically you lost money actually). But if I tell you that the investment earned a 1.3x EM, then you'd know that I distributed all your cash back plus 30% on your money.

Is this the right way of thinking about it?

Like Chris said, there's flexibility depending on however you want to structure it. Sometimes it's a fixed % off whatever capital balance is remaining and other deals where it's a fixed $$$ regardless of what's going on with the deal.

I've also seen deals where there's a "clawback", in which the preferred return is given out only after the refi/sale. That can get a little tricky to plan out and also to pitch to investors because you have to consider the impact of the time value of money (a dollar now is worth more than a dollar in year 5 when the refi happens, for example). So in lieu of distributing the preferred return monthly, you do it all at once at the point of refi/sale while giving a little more to make up for the lost value. 

Hope this helps.

Thanks for the insights @Caleb Brown. I feel like Q1 is generally slower. It'll be interesting to see how what the transaction volume will be for the rest of the year.

Hi All,

Happy holidays! I'm curious to hear people's opinion on how the KC multifamily market will perform in 2023 and beyond. From the research I've been doing from out of state, the market is performing well and shows signs of being resilient in a recessionary environment: 

- Unemployment is ~2.7% which is below national averages

- Vacancy is low at 3.1% despite rents increasing 9.7% from last year 

- There's not a lot of new inventory coming on market (# of units grew only 1.9% this year) 

Combining all this with the fact that housing prices have increased, so that it's more unaffordable to buy a house at this time, bodes well for multifamily.

But what's it like to be actually in the market? Are multifamily leasing agents making a killing on commissions while realtors aren't doing so hot? Is it harder to find deals now since there's so little new construction?

I'm looking for a smaller multifamily (6-10 units), so this doesn't apply to me much, but cap rates have declined and are trading at 6s on average. I took these figures off a Q3 report, but was interested to hear what people who are in the market are experiencing. Any and all thoughts are much appreciated.

Hi all, has anyone worked with Hampton Tax and financial Services? I’m interested in their tax services but wanted to know what experience others have had. Feel free to DM me. Any feedback would be much appreciated. Thank you in advance!

Thanks everyone! Very helpful responses.