Commercial Multifamily Acquisition
Hello BP,
Currently, I’m raising $1mil in private money for the downpayment on a $5mil commercial loan. The next down turn is expected to commence this year, 2020, and I’m positioning myself to get involved in multifamily acquisitions at this opportune time.
In the next 24 months I will be purchasing a 20 - 30 unit apartment complex in one of the following markets: Sant Antonio TX, Orlando FL, Atlanta GA and Colorado Springs CO, I’ve chosen these rental market for the following reasons:
1. Population Growth: Orlando’s population grew from 2,512,917 to 2,572,962 from July 2017 to July 2018, a difference of 60,045. That was topped only by four metro areas in the nation: Dallas (131,767), Phoenix (96,268), Houston (91,689) and Atlanta (75,702), the bureau said. Source: https://www.bizjournals.com/orlando/news/2019/04/19/metro-orlando-population-grew-by-60-045-last-year.html)
2. Ensured Performance through Stable Job Growth: Orlando ranks third for job growth in the category for large cities with populations greater than 500,000. The City Beautiful added 128,600 jobs from 2016-2019. That's a growth rate of 11%. At the end of July 2019, Orlando had 1,328,400 total jobs. (Source: https://www.bizjournals.com/orlando/news/2019/08/28/see-how-orlando-ranks-among-big-u-s-cities-with.html).
3. Historical Rent Figures - Though the cap rates in these areas are currently unfavorable due to where we are in the market cycle, historically there have been opportunities to find projects with cap rates over 8%. (Source: Creative Realty Partners - http://creativerealtypartners.com/wp-content/uploads/2016/10/Orlando-Multifamily-Outlook-8.15.16.pdf)
What can you expect from your investment?
1. A completely passive cash-flowing investment: I do all the work involved, including property maintenance and tenant placement.
2. An 8% preferred return, then a 70/30 split on: After all expenses and debt servicing, your COC return will be approximately 10% (or more!). I won't consider anything with a total COC return of less than 15%.
3. PEACE OF MIND: I take extra precaution when dealing with your money through insurance policies that protect your property against any possible damages, and the loss of income that results.
If you or anyone you know is interested in working with me on a future project, give me a call at 772 - 577 -0084.