All Forum Posts by: Tyler Kastelberg

@Hiro Kitagawa

Hiro: One thing you might consider is Cinci's tolerance of Airbnb. Some cities are pushing legislation to block people from Airbnb'ing their properties full time. Save yourself a future headache, and make sure the city is supportive of the platform.

@Brian Bandas

Brian: Who is the most active multifamily broker in Nashville?

The best realtor for small product is Erin Ward with Keller Williams. She feeds me off-market multifamily deals regularly and knows the neighborhoods very well. For medium to large multifamily, Altay Uzun with Marcus & Millichap runs a lot of volume in the market. I’m a principal in multifamily deals around Hampton Roads and like Olde Town Portsmouth, parts of Norfolk, and parts of Virginia Beach. What are you looking for? I find off-market deals regularly. Feel free to DM me.

Rob: I do deals regularly in Richmond and know most of the brokers. How many units are you looking to acquire?

@Luke Megna

Luke - You're off to a good start. In addition to @Michael Bishop's notes, consider structuring your 50% split as a "promote" (aka carried interest). In lieu of taking a 50% equity stake at inception, you can take a 50% promote on all earnings above the 8% preferred return. The math should work out the same, but your investors will feel more comfortable that their equity contribution isn't being cut by 50% at inception.

Message me if you'd like me to elaborate! Google "equity waterfall" or browse www.adventuresincre.com if you'd like to learn more about how the math works.

@John Whitridge

John: I agree with @Scott Skinger on the sample deal package. I gained a small following with a sample deal package that gave me the confidence and equity to pursue and close my first syndicate. Additionally, if you don't have experience with larger assets, consider partnering with a more experienced asset manager on your first deal. You'll learn a lot, earn a little money, and it will give you a deal to put on your resume.

Most asset managers (new and experienced) will admit that most of their investment dollars still come from friends and family. Consider starting there when you've found a good deal.

@Samantha Magina

Sam: On a Class B or C asset, you should estimate between 40-45% in operating expenses as a percentage of gross income. 

@Matt Lefebvre made a great observation. At 85% occupancy, the complex will not be considered "stabilized" and therefore not eligible for non-recourse, agency debt. At best, a bank will require a 75% LTV and 1.25x debt service coverage ratio.

If you'd like to get into this market, you'll want to partner with an experienced investor or syndicator to gain some credibility. Non-recourse lenders require prior deal experience.

Best of luck!

@James Kojo

James - You're a king! This chart is great. Can you link me to to the report?

@Juan Vargas

Thanks Juan - My expertise is currently in Virginia. It is no longer attainable to find 7%+ cap rate deals in Richmond, VA. The Hampton Roads area still has some product, but the growth outlook is poor.

@Garrett White

Contact @Dominic Bouchard

He runs a neat startup that might be able to save you considerable money on legal costs. I haven't used them, but I intend to give them a chance on my next syndication.