All Forum Posts by: Chibuzor Nnaji

@John Sherron go to the old capital podcast website and sign up on the email distribution and they will send you a due dillegence checklist, here ya go http://www.oldcapitalpodcast.com/ . 

@James Perez I second what @James Eng said, those guys have a lot of units under management here in the DFW area. 

@Chad Walsworth I would like to piggyback on what @Rodney Miller said, figure you what your NOI is because it's essential in analyzing a multifamily investment, without a firm grasp of what the NOI is it'll be hard to fully understand the deal you have at hand.

@Matthew Rembish I agree with @Jonathan Twombly I don't know the NJ market well at all but just from the standpoint of underwriting conservatively, I think is very vital that you are if you have to make a decision more conservative than not in your underwriting process. 

Hi @Francisco Herrera I’d go to where you can get in front of as many apartment owners as possible. So look up all the multifamily meet ups in your area, reia groups, search through bigger pockets and etc. Just get as networked as possible and start having conversations and getting your company and service in front of as many people as you can! Good luck!

Hi @Ken P.I agree with the input that both @Abel Sng  & @Andrew Campbell gave. As far as increasing your personnel costs when underwriting the deal that is recommended, I'm not sure if there is an exact percent that you should use to increase personnel costs in your underwriting from what they've provided but I like to think of it this way and that's by increasing the costs from what they've provided by more than what you think it may be, your underwriting will be more conservative than if you go with their numbers. And in underwriting I think you want to be as conservative as possible therefore you are not making sense of a deal work with numbers that might be underestimated. I think being conservative in the underwriting process is important is what I'm getting at. As far as incentives for the property manager Andrew hit it right on the head, by having NOI targets because ultimately if they are able to hit the NOI incentive well that means through the fiscal year of the deal, they were essentially able to keep expenses down, increase income/rents and keep occupancy at a level that allow them to hit that NOI you projected which is the ultimate goal or one of your main goals as an operator of a deal.

Hi @Brandon S., I’d like to piggyback on what @Kim Meredith Hampton said. Most lenders who will provide the loans you need for larger multifamily purchases would like for you to have experience in purchasing large multifamily deals or be teamed up with an experienced property management firm that has managed properties similar to what you want to acquire. So basically something you can do to be qualified for the loan is team up with the experts so a great property management firm, someone who has a lot of experience in the multifamily arena or someone with a large balance sheet that can be a guarantor for the loan. I hope this helps!

Hi @Robin Boyer you are correct in that there is a ton of information to learn aboutu owning multifamily properties haha. I have some book and podcasts recommendations for you. As far as books go I recommended the complete guide to buying and selling apartments by Steve Berges, Best Real Estate Investing Advice Volume 1 & 2 by Joe Fairless & Multifamily Millions. As far as Podcasts go I’ve found these to be very informative in my journey of learning about multifamily: Best Real Estate Investing Advice Ever by Joe Fairless, Real estate investing for Cash flow hosted by Kevin Bupp, Old capital real estate investing podcast with Michael Becker & Paul Peebles, Wheelbarrow Profits Podcast By Jake & Gino and The real estate guys radio show. I hope this helps! If you have any other questions feel free to reach out. 

Hi @Robert Ferrell the way I got my start in the apartment world was by 1st educating myself through podcasts such as biggerpockets, best real estate investing advice ever with Joe Fairless and etc. I listened to hours on hours of podcasts to get a general understanding of the business and then I found a mentor which I think is vital, especially if you don’t have any real estate investing experience yourself. So if you are just getting into this I would say the most important thing to do for now is to educate yourself as much as possible then when you feel ready to take steps forward, find/hire a mentor and start taking action.I’m still in the process of completing my first deal but my 2 cents is at the beginning of this your education is vital. One book recommendation that is all encompassing about apartment investing is The complete guide to buying and selling apartments by steve berges. I hope this helps if you have any other questions or want more book/podcasts recommendations feel free to message me! Good luck!

@Adam Sheren  Hey Adam my 2 cents is that you will need to first find out what these investors overall investment objective and then educate them on what your business is and how you will be able to bring value to them and how your business can help meet their investment goals. So instead of pitching/ being salesy I think an approach of figuring out what are they trying to accomplish and then presenting your business as a possible solution by educating them about multifamily syndication I’d say is a good way to go about it. Here’s an ebook by David Thompson that I really enjoyed on capital raising, that will give you a better insight on how to approach investors. https://docs.wixstatic.com/ugd/fa41db_225bbe64d653400598daeefa7e726ee6.pdf

As far as how often are investors required to leave their money in an investment, it varies. Some syndicators have a 3-5 year business plan where they want to get in the deal add value through whatever value add techniques they’ve planned on executing and then disposing of the deal once renovations and deferred maintenance and the value of the property has gone up. Other syndicators want to get in a deal and cash flow forever so it all varies on what the specific business plan is for the deal. A book I would recommend to you is The Complete Guide to Buying and Selling Apartment Buildings, it gives you a great understanding of why you’d want to execute a 3-5 year business plan and or cash flow forever. And it also is just a great resource of exactly what the business process of multifamily value add is.