Investor · Triangle Area · Member since 2018 · 9 posts · 0 votes
Currently looking for someone that has invested in multi family properties and has knowledge on structuring deals. I’m looking to acquire a property just want further insight on deal structure. And thoughts on cap rates and cash flow.
Syndicator of Large Apartment Buildings · Glen Mills, PA · Member since 2009 · 1k+ posts · 1k+ votes
5y
@Julian Alford there are many ways to structure a multifamily deal and there are many posts on BP re: this topic. My suggestion is to spend time reading and educating yourself.
Syndicator of Large Apartment Buildings · Glen Mills, PA · Member since 2009 · 1k+ posts · 1k+ votes
5y
@Julian Alford there are many ways to structure a multifamily deal and there are many posts on BP re: this topic. My suggestion is to spend time reading and educating yourself.
Real Estate Agent · Oklahoma City, OK · Member since 2019 · 956 posts · 600 votes
5y
@Julian Alford I an advise around multifamily in my market, but it may not apply to the market you're trying to buy in! Where are you hoping to invest and what questions do you have?
@Julian Alford there are many ways to structure a multifamily deal and there are many posts on BP re: this topic. My suggestion is to spend time reading and educating yourself.
Investor · Triangle Area · Member since 2018 · 9 posts · 0 votes
5y
@Stephen J Davis, this deal is for myself it’s a 5 unit in NC I’ve been eyeing. And I’m currently running numbers and reading up on as much as possible.
@Julian Alford I an advise around multifamily in my market, but it may not apply to the market you're trying to buy in! Where are you hoping to invest and what questions do you have?
Investor · Triangle Area · Member since 2018 · 9 posts · 0 votes
5y
@Kiera Underwood it’s a property that I’ve located in NC, a 5 unit at a good purchase price. My question is what is the best way to bring an investor to assist with the purchase and setting the terms of that agreement.
@Julian Alford as mentioned there are a lot of ways to structure the deal. Is the property listed with a broker or is it off market? Are you using conventional lending, seller financing, syndicating? Is it occupied and performing or does it need to be stabilized? Depending on the current position of the property, your resources or lack there of, the willingness of the seller to get creative can help you determine the best way to structure your deal.
Investor · Triangle Area · Member since 2018 · 9 posts · 0 votes
5y
@Trent Ellingford I located the property on a third party site, I'm a broker but could not locate same within my MLS. I am looking at using a conventional lender for this property. It's is currently Occupied and cash flowing. And I also am currently tracking down the owners of the property to present an seller finance proposal once I have all the facts worked out.
Rental Property Investor · Redondo Beach, CA · Member since 2017 · 411 posts · 477 votes
5y
@Julian Alford a 5 unit sounds totally doable. If you are going to partner with someone, you might consider a joint venture, but this requires all partners to be active on the deal. So if you bring the sweat equity, and they are only bringing the money, this probably doesn't work. Technically they must be "active" in some way - probably not hard to meet the minimum requirements. Then it is whatever equity split you can work out - 50/50, 40/60, 30/70, and then split cash distributions.
Another way might be to bring in a private lender with a promissory note if you plan on Brrrring the property. They could earn their percentage until you refi out and return their capital.
@Kiera Underwood it’s a property that I’ve located in NC, a 5 unit at a good purchase price. My question is what is the best way to bring an investor to assist with the purchase and setting the terms of that agreement.
Ah understood. I'm typically working with very straightforward LLC partnerships, commercial or conventional lending. If someone wanted to set something outside of the financing partnership norm I'd likely refer to an attorney.
Rental Property Investor · Portland OR · Member since 2018 · 2k+ posts · 3k+ votes
5y
Fwiw, CAP rates and cash flow are fairly area specific. Your best bet would be to talk with commercial brokers as they will know those numbers inside and out.