All Forum Posts by: Veronica Giggers

I would encourage you to check out the NARPM website. They have a PM locator tool you can use to help find one in your preferred area. Linked below for ease of access. I am also the Vice President of the SAMAC chapter and happy to chat if you have any questions. Good luck and happy investing.

https://www.narpm.org/find/pro...

I realize the BP site's search function is pretty crappy but you could also search on this topic and find more than one post on the subject.  I know I've posted replies at least twice about OK PMs.  Look up Keyrenter, they service quite a broad area of OK and even NW Arkansas.  For Tulsa specifically, Bailey-Foristell has been around a long time, family-owned biz.

@Veronica Giggers You need to chat with @Cara Sides! She works with the property center and they manage in both Tulsa and OKC, not sure if they manage in Grady county as well. 

I've had two properties with them for a while now and i highly recommend. 

Quote from @Veronica Giggers:

Hello BP family. We are considering investing in a MF, it is 12 units with over 90% of the property empty, and needs renovations to all the units. I know there are variables to ever situation. But, approximately how long does it take to turn a MF property over, and reposition it for refinancing? I have done some calculations on rehab cost, but not sure how long it will take to start getting cash flow.

 Veronica - I think it would be beneficial to share this project with a potential contractor or two and get their thoughts on the renovation timeline. Different theories on how to execute (renovate all at once, renovate 4,5,6 at a time, etc..) so you'll want to get a sense for their renovation timeline. Of course, I would add a month or two to their timeline and then chart it out in excel to understand when each unit might be available to rent once stabilized. (It's probably reasonable to believe that your first units wouldn't be "rentable" until 6-9 months after closing). Below that I would then guesstimate your "cash burn" during each month to make sure you have renovation funding aligned with your project. Lastly, you can then model your potential future cash inflows based on the first month rent estimates as units come on board. Overall, I think you'll want to clearly understand how much cash is coming in and going out each month to make sure you can support the project over the entirety of the project. Good Luck!

Quote from @Veronica Giggers:

Hello BP family. We are considering investing in a MF, it is 12 units with over 90% of the property empty, and needs renovations to all the units. I know there are variables to ever situation. But, approximately how long does it take to turn a MF property over, and reposition it for refinancing? I have done some calculations on rehab cost, but not sure how long it will take to start getting cash flow.

I know you are only considering this property and not sure how much experience you have in commercial multifamily. But perhaps a better strategy would be to find a stabilized property (with occupancy over 85%), that does require update in all units. It would be easier to finance such a deal (as it is producing cash flow), you could then update as vacancies happen. Once you've improved NOI, after seasoning, you can refinance. Perfect BRRRR.

@Veronica Giggers

This sounds like a very heavy lift (major renovation); especially since all the units need work, and it is pretty much a vacant property. 

The time to renovate and rent the units depends on the team you have. I have done renovations like this in 90 days, and then it took another 30-45 days to fully rent the property. It also depends on your financial situation. If you have a good team, and you have all of the renovation funds in cash (no delays); you might be able to complete it within 90 days, and start receiving cashflow within 120-150 days. Seasoning the property for the bank will now take another 6-12 months (depending on the bank) from the time of full occupancy (you want to highest valuation).

I would add another month to any estimate and add another 20% to your renovation estimate (maybe more if this is your first major renovation). If you are getting hard money or a bridge loan to purchase this; I would make sure you get at least a 2-3 year term (with no prepayment penalty).

This is going to be a major project, that will require a lot of time on your part for overseeing contractors and the progress of the renovation.