All Forum Posts by: Vinay Kolluru

@Nic Cooper see you there!

I have a rental property in Windy Ridge on Scott St. It is a great neighborhood. Congratulations on the acquisition! And great job on helping your friend's family out.

@Jeffrey Donis Thanks brother!

@Jai Reddy Thank You! I am learning more and more that Oklahomans are super friendly and helpful! Makes me even more excited to do business in the state!

@Rahul PunjThere are a number of reasons:
-The OKC market is fundamentally strong and is still affordable: strong rental market, growing population, landlord friendly, diverse economy
-Our asset management team is within driving distance of the property, so we will have constant oversight to ensure our business plan is being executed
-OKC is still a hidden gem. When you look at the same places everyone else is looking (e.g. Atlanta, Dallas, Raleigh, etc.), it is becoming nearly impossible to find a deal that works in our business model. Our underwriting is based on fundamental cash flow, not market appreciation (even though we invest in strong markets).

@Nathan - 100% correct!

@Lara WhiteThank You so much! The property is called Huntington Place and is on N Midwest Blvd. We plan on rebranding it to something to something to do with the attached park.

@Simon Castillo@Simon CastilloI appreciate it, brother! We need all the help we can get :-)

@Ben ScottThank You! The deal is financed through an 80% Loan to Cost bridge loan. The equity is owned by Limited and General Partners with a 70/30 split. The LPs own Class A shares and are paid on a preferred basis. Please let me know if you need more details on the structure.

@Cassi JustizI agree that MC is a great rental market! Congrats on your portfolio there. Pickleball is getting super popular - I didn't know there was a pickleball restaurant! And yes, B and C class assets is where I mostly operate. They don't have the shine of an A class, but the returns for investors make much more sense.

@Michael Jones1st off, thank you for your service! And thank you very much for your offer.

@Nicholas Upton Thank You!

@Marc Rice Pickleball was originally popular with more of a senior crowd, but now it's getting more popular with all age ranges. Also, the space it will occupy takes up less than a tennis court, so we can do more than what was previously done with the space.

@Ryan GarantThat is correct. Class has to do with the age of a property as well as the amenities, neighborhood, etc. The reason we are repositioning to a B class is because the area demographics support it. So just because you can offer a B class property doesn't mean you should. This is, after all a business, and we need to ensure there is an ROI on our investment.

I wanted to share the details of our latest multifamily acquisition...

We, along with our partners, acquired a 288 unit / 30 building Class C apartment complex in the Oklahoma City market. Our property is in Midwest City, OK, which is less than 10 miles from downtown OKC. This market has a diversified economy and a population that is growing at 2x the national average. This, along with our conservative underwriting, will allow us to successfully execute our business plan of repositioning the asset from a C-class to a B-class in nearly all market conditions.

The complex was built in 1974 and has very little deferred maintenance. The sellers maintained the property well and took care of any exterior issues. Because the property is in good structural condition, we are going to focus our efforts on interior renovations and improving amenities.

We plan to improve the interiors with new appliance packages, countertops, flooring and refinished bathrooms. Additionally, we plan on taking the existing tennis court and converting it into a pickleball court and a multi-use space for recreation. We also plan on building an outdoor kitchen and dog park. The city is investing heavily in the area as well, including the building of a large park that will be directly connected to our property.

Now that the acquisition is complete, the real work can now begin! We are super excited to provide a beautiful, safe and affordable community to the Midwest City market.

Helping solve the affordable housing crisis continues to be a very fulfilling endeavor.

I've invested pretty heavily into the Fort Smith, AR market. It's performed great for me and my partners. Even during covid, it's been very strong. 

@Eric Nieves a 1031 for that amount is absolutely possible to 1031 from a SFR into a syndication. In fact, I've done quite a few syndication deals with 1031s as Tenants in Common (TICs).

If they don't want to do a 1031, they can consider getting into a syndication deal with significant Bonus Depreciation. They'll be able to get many of the benefits of a 1031 without all the hassle.

@Nathanael Greene Ok, so you are talking about being the lead sponsor/General Partner (GP) in the syndication. Again, your pace depends on many factors. 

In my experience, the most effective way of scaling as a GP is to partner up with people who have run similar deals before. It is even better to partner up with people who have gone full cycle on a deal, meaning they have successfully exited a deal and given their investors a healthy return on their invested capital.