All Forum Posts by: Allyssa McCleery

@Enrique Huerta @Luke Miller thank you for the information!

I am not sure what the following terms mean: LIBOR, IO, bps? 

Another suggestion I heard on a podcast awhile back is to approach local shops in the area (depending on your target tenant-- nail salons, restaurants, bowling alleys, mechanics, etc) and try to work out a deal with them where you can offer the tenants a discount if they go to these places and then with each customer you refer they give you a small bonus. This is more beneficial for larger apartment buildings but if you have partnerships with enough shops you can add a bit of value to the NOI and also benefit the community.

@Luke Miller Can you explain a little bit more on how to use a bridge lender during the value-add process? What do these terms usually look like and how long can you hold the loan?  Are you able to obtain financing for the rehab as well? There is a heavy rehab I am considering for an apartment building about this size and I am trying to determine what my financing options are so I can give the seller a couple different offers. 

I agree with everyone that broker relationships are vital to be able to find good deals but another suggestion is to try to approach owners directly. You can use the property appraisers website or any other service to filter out the size of apartment building you are looking for and can also look for owners who've held the property at least 10 years because they are probably most likely to sell. 

@Theo Hicks @Steven Foster Wilson The 8% preferred return is what I have heard the most from other syndicators I have met but one who I will be partnering with (once we find a deal) will structure it so that the syndicator gets 20% of the profit and the investors get 80%. I think this is the way I will go with my first deal as I am much more concerned about creating a deal that will make the cash providers feel secure and encourage them to send me referrals for the next deal or write a letter of recommendation to other potential cash providers they may not know. I am not 100% sure yet if there are any legal issues with this. 

@Gwyeth Smith Yes, you are right. Understanding the market is not easy! Does anyone have tips for different strategies for monitoring a market?

@Ian Ippolito Got it! I wasn't sure if this could be found somewhere like city-data.com. I will look for the information from that broker. I use the property appraisers website frequently and can see how you are able to understand the property prices over time but I don't know how you are able to obtain information about historical vacancy rates and rental amounts? 

@Danny Kao Definitely. I have also set up a CRM software I use to connect with certain property managers every two months to see if they know of any property owners who may be looking to sell as well as getting their opinion of any changes in the market. You can also keep notes of your conversation with their contact. Good luck!

@Ian Ippolito Thank you for this information! Do you have any suggestions for where to find the historical data? This is great to understand how conservative investors view deals and who may be best suited for a particular property!

@Nicholas Moran it should be on your city's government website. Try searching your city + permit tracking. That is a good suggestions by Robert to search by trade as well.