All Forum Posts by: Ben S.

We are a growing real estate investment company located in Metropolitan Detroit and are seeking an in-house property management professional to supplement our team.  A summary of the position is below, and we would welcome all inquiries and referrals.  We are young, nimble, and growing, so this is an exciting and entrepreneurial opportunity.

• Responsible to maintain the highest occupancy at the highest rental rate the market can sustain and minimize expenses without sacrificing the quality of goods and services provided.
• Handle all tenant relations using our online property management platform.
• Coordinate tenant move-in and move-out, ensuring adherence to unit condition checklists.
• Oversee collection of 100% of rent due before close out each month.
• Collaborate with leasing agents to monitor the market, ensure optimal rents, and proactively plan for the lease-up of current and future vacancies.
• Assist management team with the scheduling and directing on a daily basis, all support personnel for market readies work orders and various property tasks.
• Responsible for the successful and consistent marketing and leasing of the property.
• Proactively communicate with tenants to anticipate vacancies.
• Coordinate with tenants to apply for applicable rental assistance programs, as necessary.
• Assist senior management with monitoring and tracking due diligence process for new acquisitions.
• Periodic inspection and monitoring of each property, as required.
• Respond to resident inquiries and maintenance requests; delegate work orders to maintenance team as needed.

Investment Info:

Large multi-family (5+ units) commercial investment investment.

Purchase price: $1,200,000
Cash invested: $350,000

The Eastpointe Apartments is a 20-unit multifamily community located in Eastpointe, Michigan. The sponsor acquired this asset with below market rents in place, and immediately commenced a strategic rent increase program. The net operating income has been increased and the property is on track for a cash out refinance, returning a large portion of investor equity.

What made you interested in investing in this type of deal?

This was a stable asset with room to increase value through strategic rent increases. The tenant base is solid and collections are strong. The property is clean and well-maintained.

How did you find this deal and how did you negotiate it?

This deal came to us off market and we were able to quickly negotiate terms with the seller.

How did you finance this deal?

We financed this deal with a combination of sponsor/LP equity and a conventional bank loan. The property is scheduled to be refinanced with agency debt once the value add process is complete.

How did you add value to the deal?

Increased rents to market rates.

What was the outcome?

Refinance is anticipated in Q2 2022.

Investment Info:

Large multi-family (5+ units) commercial investment investment.

Purchase price: $4,250,000
Cash invested: $1,200,000

The Riverwalk Apartments is a 72-unit community located in Ecorse, Michigan. TerraNovus Capital acquired this asset midway through a value-add process and immediately mobilized to complete this process. Once complete, the asset will be refinanced, returning meaningful capital to our investors.

What made you interested in investing in this type of deal?

Significant value-add upside was available as the prior ownership group was a fractured partnership.

How did you find this deal and how did you negotiate it?

We sourced this deal off market.

How did you finance this deal?

We syndicated 25% of the required capital and utilized bank financing for the balance.

How did you add value to the deal?

Completion of unit and common area upgrades resulting in significantly increased rents.

Hello Everyone,

Several years ago we redeveloped a vacant building into eight for sale condominiums.  We sold all of the units but decided to keep one just for fun.  We have been renting this out as a short term rental on Air BNB which has covered costs, but we have a somewhat unfavorable debt structure on it that limits our ability to cash flow and/or extract equity from the asset.  Rather than just sell it (which we would consider) I would love to get some new debt in place that would allow for some level of cash out and then hold it from there.  Any input is appreciated - - we primarily acquire mid-sized apartment buildings so this is a bit out of our typical strike zone.  Here is a link to a listing for the property which has photos and other details: 

457 E Milwaukee St, Detroit, MI 48202 | MLS #2200098822 | Zillow

There are no set rules on pets that I am aware of, but it is probably worth it to check with the local municipality just to be sure.  We do allow pets in our buildings, but we require a $250 non-refundable pet deposit.  We don't currently place any restrictions on breed, although I know a lot of investors do.  One thing to think about - we have found a lot of tenants who bring pets into the home without letting us know...we typically hear about this from neighbors when it happens, which is never fun.

I like Westland as a market.  We own an apartment complex in Garden City, which isn't far from Westland.  It is a solid working class town close to employment centers.  I don't think you can go wrong with an investment there.

I used to try and target these "off market" assets by approaching the owner directly.  I learned over time that, typically, when you do this, the owner will reach out to a multifamily broker (usually the person he bought the building from) for advice.  While it is appealing to target an asset directly and avoid using a broker, it typically doesn't work out.  My advice is to identify a good multifamily broker in your market and have him/her reach out on your behalf.

Our first investment consisted of two duplexes and a single family home purchased from our local Land Bank Authority.  We renovated these properties (and learned a lot of lessons along the way!) and after a brief holding period, divested of them at a significant gain.  After doing this a few more times, we began re-allocating our sale proceeds into syndicated acquisitions alongside third party investor equity.  This is when our business began to grow...we used our track record and network to leverage investor equity and begin building a company as opposed to living "deal-by-deal."

Investment Info:

Condo fix & flip investment in Detroit.

Purchase price: $50,000
Cash invested: $500,000
Sale price: $1,420,000

We purchased a vacant building from the Wayne County (Michigan) property tax foreclosure auction. We invested approximately $500,000 to renovate the building into six residential condominiums and two retail condominiums including an award winning bar/restaurant and an Italian-style coffee shop.

The crowdfunding sites (RealtyMogul, Fundrise etc.) are a great resource for fully vetted syndication opportunities.  Outside of that, you can get to know different sponsors in the markets you are targeting and get on their radar for deals.  We are always looking to build relationships with potential LPs and would be glad to chat with you in this regard to share what we are working on and/or connect you with other sponsors so that you can build relationships that will bring opportunities your way!