All Forum Posts by: Steven Kleppin

Congrats on this deal! How was the financing?

I'm looking to develop a Gino Wickman/Traction style organizational chart for a new multifamily business. Has anyone seen something like this or want to give a shot at those positions? Off the cuff: 

-Acquisition

-PM

-Investor Relations

-Operations

-Bookkeeping/finances

-Legal

Thanks!

Hi everyone. I know BP Podcast has interviewed at least 1 syndicator that doesn't sell the property, instead keeping it and persistent cashflow distributions. I was wondering if anyone has invested with a syndicator like that. If you are one, please feel free to shoot me a message to connect! 

I'm not accredited but am an LP in a couple other "regular" syndications. Thanks!

edit: They would re-finance the property and get most of the initial investment to the investors, but hold the property long-term with the same equity stake.

@Jesse Daconta if it's just a straight debt position (ie SDIRA lends the $125k for 20 years at 5% interest), then UBIT would not be owed. 

What is standard in your market? You can talk to property managers or other owners in the area. Stick to fees instead of deposits. I like the monthly fee option because the damage is going to accrue over time. $300 isn't going to cover 3 years of pet damages.

@Jack Prins have you talked to any agents in the area? What sort of deals are you looking for? Rentals, wholesales, flips? I agree with @Cara Kennedy that you should start by talking to people who know the area. If you're looking for rentals, talk to a property management company in the area. They usually list their properties for rent on their website, look to find ones that manage the type of properties and locations that you want to invest in. 

Thank you @Matt Engle. What's the purpose of the lead inspection? You can be pretty sure it exists dependent on the date of the building, and once you know you're required to disclose. Correct? 

What's the benefit to you for conducting it?

Outside of the down payment, I'm trying to calculate how much money I'll need to have ready upfront in order to purchase a 12 unit apt. I know the exact numbers will vary dependent on location, season, etc. But could someone toss some numbers out for 

• Appraisal
  
• Inspection
• Title
• Legal review
• Reserves
• Tax/Insurance pre-pay (is it 6th months? a year?)
• Anything else I might be missing.

Seems like it really adds up. Thanks in advance!

@Chris Mcdonald Have you asked your friend what he thinks is a good return? I'd start there. It sounds like you have a specific person in mind. Also, what are his goals? Go through a few scenarios with him. Don't be too greedy the first time around.

I'm also glad that in the body of the text you say "partner" not "investor" as you do in the subject of the post. If this person is going to own 50% of your LLC, and is not a limited partner then I wouldn't consider it an "investor".

Is it standard to use a real estate agent when purchasing small (12-unit specifically in my case) apartments? The info on the property is already available through the listing broker, I know how to run the numbers, and am familiar with the area. I understand it's good to have someone "on your side", but it seems like an unnecessary middle man when I have questions about the property.