All Forum Posts by: Anderson Bigate Nogueira

Hi @Katie Miller, planning to add 1 or 2 large multifamily (>100 units) in the portfolio, probably Q3-Q4 as I agree with @Nick Robinson above, there will be so opportunistic deals out there this year as the FED keeps hiking rates and will force people to sell. Being extra careful to pick the market to invest on, fundamentals have to be really solid (population growth, jobs growth, Median HH income, etc.) as you want to be in a market with large tenant pool with lots of jobs, so you can mitigate economic occupancy problems and evictions.

Hi @Marjo Naci, how are you? Large syndications (>100 units) has lots of advantages with that scale, but you definitely want to talk to a security attorney, here in Texas we have used Kaliser & Associates and they are very sharp - one of the owners is a multifamily syndicator himself, top notch person. Research lawyers that have specific knowledge on syndications and interview then to pick your favorite.

The above is on the legal side of things, not sure if you have the "partnership" figure it out and all the roles assigned (acquisitions, asset management, capex deployment, capital raise & investor relations, etc.) if you don't a good idea is to join a multifamily program to meet other syndicators and form partnerships - such as 
Brad Sumrok, Rod Khlief, Michael Blank, Jake and Gino, Vinney Chopra... listen to their podcast, research on them and pick you that align to your goals. I am on Sumrok ecosystem, and I can tell it is worth every dime - the value you take from the program, and more so from the ecosystem is phenomenal. Since I've joined, I have invested in 1,220 apartment units, 60% of it as GP.

I hope that helps. If you want to talk more about it, DM me. It is an exciting business, all the very best for you!

Hi @Ibrahim Ahmed, how are you?! I'm not a CPA, or Lawyer or Financial advisor, but I have invested in multifamily syndication as LP thru a LLC and will try to address your questions:

1) As far as I know, the same SEC rules applies for all individuals in the LLC, meaning they have to be accredited investors (for 506.c offers) or sophisticated investors (for 506.b offers), besides having previous relationship with General Partner etc.

2) It is your discretion. If you don't feel comfortable reviewing the legal documents of a syndications (PPM, Subscription agreement, etc.) then yes consult a lawyer familiar with the matter.

3) Right, not a CPA here, but I understand you can have some tax advantages using your LLC.

4) For this one I'm sure some people will disagree with me: If you are creating and using a LLC for just one-off investment, I would say the work is not worthy. But if you are planning in doing several investments, I would say is more advantageous than investing as individual as LLC offers better mechanism to "shield" your investment.

Hi Cole! How are you?! What I meant is that "market price" is set by the demand versus supply of that type of asset in a given market, and what that graph shows is that more demand coming to sun belt states (in darker blue on that graph) and supply is not enough or is not growing fast enough (unbalanced supply/demand). According to NAA and National Multifamily Housing Council Dallas-Fort Worth has the largest gap in supply of MF units across the nation: needs 270K units by 2035 to balance the demand (chart below). By Sep 2022 there were 16,177 units delivered.

On the jobs side, DFW attracted +20,000 jobs in the last 2 years either by expansion or relocation (i.e. Uber second HQ, Tesla Gigafactory, Texas Instruments chip factory expansion, JP Morgan expansion, Gatik, Rhino Health, Dr. Pepper, Allstate insurance, etc.). As far as median household income, all 4 major markets in Texas are above the national median, so as far as "fundamentals" Texas looks attractive, that is why is a competitive market with more investors flocking in - does it makes sense?  

I am curious to know where you found the stats that DFW is in "hyper-supply currently"... always good to check other sources and perspectives.

HH income

I eco what @Brian Burke is saying above, especially on "Pref is generally a shorter term than common equity, which means you need to have a way to redeem it out. This could come from an early sale or from a refinance" ... and that put you on the clock. "Over the last four tightening cycles, the time between the first hike and first cut averaged 2.2 years, and never exceeded 3.2 years" - credits for www.pensford.com 

 Hi ZZ, you can start with (1) Landlord friendly states, (2) Population growth/migration patterns (3) Job creation... I always like to rely on factual data, so for questions #1 and #2, I can tell if you invest in the "sunbelt states" of Arizona, Texas, Florida, you are in very robust markets - see the chart below that combines population growth/migration with rent growth... then, if you have reservations on investing long-distance, research on multifamily syndications. It is a passive investment model, where the general partners/sponsors/operators will do most of the job, so you can look for investment options on the markets that looks more promising for you.

Credits: Chart below complied by Marcus Millichap, "2022 Multifamily National Investment Forecast Report"

Hi @Cole Baker, technically the market price for rent is determine by the old supply x demand, so I would seek markets with unbalanced supply, but also consider other criteria, like population and job growth, especially as we dive into a recession, you want to be in markets with large pool of jobs to mitigate evictions, how diverse are the economic drivers and industry, etc. I invest in large multifamily apartments (>100 units) and my buying criteria includes the sunbelt states lick Arizona, Texas, Florida, parts of Tennessee, etc., and I like Texas a lot because the job market in the state (largest migration inbound of businesses during COVID period). do your research seeking different sources and perspectives. For example, I like this chart below that correlates population growth X rent growth. I hope that helps,

Hi @Vasundhara Ranjani

If your multifamily properties are large (>80 units) I recommend looking at Old Capital 

Old Capital Lending – Commercial Real Estate Debt & Equity

Hi @Peter Eberhardt,

I like your enthusiasm and direction you are going. I'm a multifamily syndicator myself and I absolutely believe multifamily apartments are the most recession resilient asset class. Not sure what "size" of syndication you are planning to do, and it can be quite different to acquire and operate. I focus on >100 units because of the benefits of scale, spread the risk, better debt conditions, etc. and for that case, despite I also liking to "learn hands on", under this economy it might be prudent to learn "alongside others", as there is higher volume of money at stake. There are several multifamily syndication groups you can join and learn with them, to mention a few: Rod Khleif, Lifestyles Unlimited and Brad Sumrok - which is the one I am part of. There are a multitude of benefits joining an experienced group of syndicators: networking and finding partners (multifamily is a sports game), credible source for vendors for everything you need (Prop Management, Contractor, Cost Segregation, Loan Brokers, Water Conservation programs, SDRIA, security lawyers, etc. etc.). 

I've acquired 820 units in 2022 and plan to buy another 3 large multifamily in 2023. Hit me up if you want to talk more about it and good luck on your journey.

Hi @Guy Idan, like others in this tread said, is important that you "vet" the Syndicator (aka sponsor) - every component of the syndication is important (the property location and the local economic drivers, property class, the loan type, property management company, the sponsor, etc.) but I would say this is more as a bet on the jockey than on the horse. A great property in a prime locations means nothing on the hands of a terrible syndicator. Take a look at REEP Equity and Granite Towers Equity Group and check their experience and deal offerings. I can connect you directly with the syndicators if you want. All the best,