All Forum Posts by: Bob Floss II

@Josh Jacobson It sounds like your being slightly too aggressive in looking for a value add building. Apartment buildings can be victim of bad management and significantly deferred maintenance. The items you are underwriting are normal for looking to increase value and raise rents for a building that's been maintained but under-managed. I'm guessing you are looking at buildings that need a rehab or work done, which exposes you to porches, boilers, and big ticket items. Try to get away from rehab buildings and look for owners that want to retire or cash out and have not updated their units in a long time.

@Davion Lewis @Rodel Gobenciong Sounds like you are both doing a lot of research before your first deal, which is great. My two cents to add to the conversation: speak to attorneys that have closed your type of deal at the title company. 

In my experience, sometimes titles companies will tell you they can close a creative deal, you show up for closing, and the underwriter won’t sign off on it. The title rep will always say yes, but you need to get the blessing from the people in the back reviewing the deals and issuing title. 

@Davion Lewis I have times available next week to meet and formulate your strategy. 

@Brie Schmidt I’m really looking forward to this event! This is shaping up to be one of the most informative, fun investor events I’ve done. 

@Kunal Shah My office reviews PPM's and I should have time this afternoon to discuss.

@Jay Hinrichs I've tried to offer reviewing syndication ppm's for investors and review the document itself and the underlying investment from my experience in investing in my own deals. However, I found syndication investors are shocking unwilling to pay for their own adviser to review the paperwork.

@Taylor Chiu That's probably the difference. I'm used to commercial loans where you can pull money out as soon as the property is cash flowing.

@Jessica Zhang I don’t understand. If you buy a building and fill it with tenants, you should be able to pull money out immediately. 

@Eric Swanson I'd be happy to help.

@Matthew Celeste Typically hard money is available from an institution that lends money for value add properties as opposed to a traditional lender. If you are an individual looking to lend money, you are more of a private investor or private mortgage. Real estate investors love having private money, but you'll need to establish your lending terms and probably have counsel to represent you and prepare your loan package for the borrower. You'll also want to create a process for how people can apply for a loan through you, what you require, and figure out how your going to review each application and the underlying deal.