All Forum Posts by: Adam Lacey

It's hard to evaluate without having the financials, but if we assume 50% expense ratio, looks like a going-in 4.3% cap and a stabilized 5.4% cap. How are you planning to fund it? You own money, JV, syndicate?

A going in cap rate of 4.3% doesn't bother me, but there just doesn't seem to be a lot of upside if the stabilized cap is 5.4%. I would just get very clear on what your target returns are and then determine if this deal fits that criteria.

@Jonathan Bell I would suggest using a deal that fits your investment criteria and not worrying about what another property sold for. If you're looking at syndicating multifamily right now, most deals are not going to pencil they way you want them to anyway.

Just get very clear on what you're looking for and paint that picture in your sample deal. For mine, I used a property that I was underwriting and just changed the names, photos...etc. I'm happy to share if you're interested.

A broker with access to CoStar or other reports should be able to help pull sales history.

What are you using this for related to your sample deal?

Hi @Tyler L.. I think it would actually lower the value if a prospective buyer would have to assume the monthly payment. I've had a realtor friend mention this before related to single family homes. Having these solar panel contracts makes it harder to sell homes.

Looking for local bank near Greenville, SC for a construction loan for a development. Any recommendations?

Thanks!

@Carlo P Santa Ana if you can use a HELOC and still cashflow while paying back the loan, then I would do that.

Conventional down payment would make it easier to cashflow, but I would look at the CoC under both scenarios and see what gives you the higher return.

@Justin G. that makes sense. Building your own is probably the only way to have exactly what you want. Let me know how it plays out.

Hey @Allen Smith, not sure if you like listening to podcasts, but there a ton of great multifamily podcasts these days that can help you get started.

I got started by reading books and listening to a ton of podcasts to help me get familiar with the process and lingo, then started attending local multifamily meetups, and eventually invested as a limited partner (passive investment). All of these laid a pretty good foundation that helped me transition into the general partnership side (active investor/operator). Feel free to reach out if you want to discuss. Good luck on your journey!

Hey @Richard Bell, sorry to hear you've had some hard times, but I think it's great that you're looking to turn that around and create a better life. I would suggest attending local real estate meetups to help with the education piece and hopefully finding a mentor. It's possible to find one on the internet, but the best mentors are ones you have a genuine connection with and the best way to make a true connection with someone is to meet them in person. Best of luck to you.

Hey @Justin Goodin, I have not used that model.

Are there specific things that you don't like about the models you've been using? Just curious why you're looking to switch it up.