All Forum Posts by: AJ Shepard

@Mike Dymski

Work with your property manager better would be my solution. They can export as a csv or excel file.

My suggestion would be to push for a user account that you can run the reports yourself. We do this for our larger clients. They can set different roles and permissions for different users. This is more than an owner portal.

They can also set up recurring reports that can get sent to you each month. These can include excel files if that’s how you desire them.

As far as getting the info into other accounting software, that’s difficult.

Ask for a 12 month income statement and 12 month cash flow. This should pump it all out month by month in a nice report other than the owner portal report.....

@Jonathan Manacchio and @Uwe G.

Cap rates are very difficult to calculate for 4 units and under. It’s probably not the best way to determine if a small deal is a good one or not. Many brokers are taking the best of both worlds (projecting high rents and low expenses) and most 1-4 unit the information that goes into calculating cap rates from an owner that can’t even provide a T-12.

In my opinion, it’s best to look at income vs sales price, and projected rent vs sales price.

Portland’s laws definitely seem scary from an outsiders perspective, but as long as you play by the rules you shouldn’t have any problems.

@Audrey O'Connor

I was on the board of the rental alliance for 6 years and that organization is geared more towards small landlords and investors. You’ll find the majority of 1-10 unit owners belong to that organization.

Multifamily NW is a good organization that you will find apartment owners. Problem is they don’t have a lot of networking opportunities.

For affordable housing, I would suggest looking into the local chapter of ULI (urban land institute). This is comprised of developers, managers, brokers and there will be a lot of people that are professionals that know a lot about how affordable housing works.

@Tyler D.

Seems like you would want to look at syndication. I know you said you don’t want to network, but also finding some wholesalers in your area, doesn’t take a lot of work, but they bring the deals to you.

@Audrey O'Connor

There are some interesting topics that can be explored.

You might want to do some research on historic tax credits and tax credits for affordable housing. From my understanding the model that allows for affordable housing projects to be built is that they are able to sell off the tax credits associated with the project. There are a few firms that specialize in these types of investments, but they become pretty complicated in how the money works. Typically they work as non profits and need a fair amount of capital to operate.

In short there are mechanisms out there to invest in affordable housing, they are just fewer and far between. I’m am no expert either, but have met some people that are very passionate about it.

@Sam Jurgenson

Currently over zoom. But when we can meet again it’s at the lucky lab in multnomah village in their upstairs room.

https://docs.google.com/forms/d/e/1FAIpQLScCxeAuZK41JNACSiaSvy8jHyW7sAAheTKNe7Q3bTNQ_E-Hiw/viewform

Is the sign up form for rsvp for the event.

@Thomas Willingham

I am always of a proponent that if you can buy it yourself, you should! If you are confident in your abilities and know that you will make a good profit, it’s always going to be better buying a property 100% with your own money. We still buy multifamily properties outright along with syndicating some as well.

But when you don’t have the cash to take down a good deal, we’re always in the mindset of the saying “10% of something is better than a 100% of nothing.”

@Taylor L.

I don’t see a link? Did it not get published?

Looks like you have a lot of great speakers for this event!

@Jeremy Marquez

Higher risk is for sure with development. Construction financing and projections for new building rents are the real drivers in profit. Many times a new building is setting the market and if it’s not in an area where people are moving to it can be difficult to get rented out to the point to refinance out the construction loan which is a much higher payment and percentage. This is a lot of the risk along with construction overruns. If you are going to invest in developments, I would be very cautious with vetting the sponsor and the deal.

Many apartment syndications have a component of value add to them. I think that you could make a case that ones that have a more significant value add plan would most likely garner a larger appreciation. The way that many sponsors operate and structuring waterfalls it makes more sense to sell at the end of the value add rather than the sunset of the loan.

A good question to ask the sponsors is "do you plan on selling at the optimal time to maximize the IRR or the sunset of deal as indicated?"

Usually a an early sale of a deal will garner higher than anticipated IRR and allow for you to reinvest larger gains quickly.

Keep taking to syndicators and find the deal and sponsor that is right for you!

@Greg Moran

Thanks for sharing your experience. Having gone through the process, is there anything you could recommend to other investors when looking for these types of deals or when going through the analyzing of the PPM?