All Forum Posts by: Austin Mudd

I found https://www.retrainersca.com/ easy, affordable, and effective. 

Multifamily pricing doesn't currently reflect what happens when all of the pandemic related government spending runs dry. Lots of who are unemployed are taking home much more money from unemployment than they were pre-covid. That money is helping to pay for rent.

I'm seeing it first hand with a 200+ unit project in DFW I'm involved in. Even though collections have been very strong, occupancy has started to slowly decline and renewals are coming in 5-10% lower than in-place rents. That's a drop in income that hits the NOI and reduces value. Not to mention the adjustment investors will underwrite new acquisitions and the cap rates appraisers will assign. And don't forget, there are not many transactions happening right now. When those properties finally transact at lower values, those will be the new sales comps.

It's too early to make any conclusions where the market is going.

The deferred maintenance will only get worse. Can you handle doing the CapEx work? You could complete that work and then refinance the property if there's significant value-creation (and market appreciation) from where you bought the property. Or you could 1031 into a lower return asset that is in a submarket with good long-term trends.

Find a reputable investor in your market and work for them. For instance, get your real estate license and do leasing for that company on the side for extra income. 

Those terms not great terms for an investor and it's why you will never see an institutional investor or family office accept that kind of investment structure. Doesn't mean that kind of structure is wrong... it's more suited for "friends & family" kind of money. 

The OP also forgot to mention what the preferred rate of return is. Who wants to bet it's 6%?

Those terms are great for the Sponsor!

Word on the street is Grant Cardone laid off 80 of his 180 employees

https://twitter.com/HealThysel...

Here’s what could happen

Americans are basically plugging their fingers in their ears and completely denying the worst case scenarios here.

Here are various results for real estate

- financials markets crash, leading to consumer spending to grind to a halt and people needing to Derisk their balance sheets and move to more cash

- older Americans get hit hard with the virus as it continues to spread exponentially through the population

- older homeowners pass away or become very sick, forcing folks to sell investment property or their own homes to cover higher medical expenses = inventory increases

- home tours slow as people self quarantine themselve, leading to higher DOM and less demand

- same goes for investment properties - investors can’t send people out to conduct due diligence

- tours and lease up slows in the multifamily sector, especially hitting the Class A space. Some recently delivered apartment buildings struggle financially and defaults occurs

- the short term office/rental sector gets hit hard

- office lease up grinds to a halt as employers space corporate expansions and decision makers get pulled into more important decision making (or unable to make decisions - same goes for A&E folks consulting them)

- trade slows down causing industrial to suffer

- retail assets struggle with consumers taking a 1-3 month pause from eating and buying goods/services

- after 2-3 months of reduced sales, struggling retail companies (especially mom and pops) face dire financial situations and are forced to close

I don’t think real estate will be impacted tomorrow, but by 4Q the industry is going to be impacted heavily after the impacts cause loans to default from higher vacancy and lower income

I have a commercial real estate property I help asset manage and I don’t know squat about electrical. We need to go through and submeter about a dozen suites so I’m wondering if anyone has any helpful resources to read to better educate myself.

Thanks!

I'm going to comment as someone who works in an institutional real estate investment firm but hasn't had the time to dig into GC's PPM's but has seen his platform mentioned before.

• His deal structure looks pretty crummy for LP equity investors. A 6% pref with a 35% promote to the Sponsor is VERY lucrative to GC. But I've heard of no name syndicators who have a really good niche able to get this sort of "friends and family" structure. No institutional real estate firm would accept this kind of structure for the Sponsor.
  
• After taking a look at their website, it looks like GC is investing in extremely suburban markets that most sophisticated family office, private equity, and public REITs shy away from. Most institutional capital is trying to buy assets in Class A markets that are defensible in a downturn.
  
• Has anyone looked at these deals from a sales comp/lease comp perspective? What's the basis of these deals? Is he paying top dollar in weak markets in order to generate deal flow (to which he then syndicates his entire equity component)? This would be concerning
• Who are his team members? Do they have in house construction management? Do they self-manage? What's been the transaction history? Who are his sources of debt capital? What are the typical debt terms?

This is a pretty simple question, but I was wondering if anyone has any websites, guides, tips, or anything of the sort that cover common questions and things to be aware of when creating a new brokerage firm in California. I would be going independent with one or two other agents that I'd look to hire down the road.

It looks like C.A.R. has a New Broker Starter Kit but I thought I would ask the lovely people of BP first in case there are any free resources that anyone knows of the top of their head.

Thanks!