All Forum Posts by: Chris Shepard

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $945,000
Cash invested: $345,000

I 1031ed a single family home that I purchased in college into this 5 plex. My plan is to add value to the property and get a freddie mac small balance loan once I've increased the NOI.

I had a lot of difficulties getting a loan on this property since the loan is less than 1m.

Upon purchase, I immediately sent RUBS notices and raised rents to all 5 units the maximum that was allowed by the city of Portland. Once these increases go into effect the property value will increase by (5 units x $100/m of utilities and 5 units x $95/m of rent increases which amounts to a $11,750 NOI increase) roughly $250,000 at a 4.5% cap rate.

I need to get the property value up to 1.33m so that I can get a 1m loan at 75% ltv so I need to figure out how to do this. Wish me luck!

What made you interested in investing in this type of deal?

1031 exchange

How did you find this deal and how did you negotiate it?

multifamily broker

How did you finance this deal?

credit union, it was a nightmare

How did you add value to the deal?

implement rubs and raise rents

What was the outcome?

it's pending

Lessons learned? Challenges?

going with an unknown lender is always a bad idea... I should have used the guys I knew would close the deal.

Hey all,

I have a question for all you MLO's out there.  I just finished my MLO education with the idea that it's going to be easier to get my file through underwriting.

No one in Oregon wants to underwrite my file because it is too much work. I am self-employed and have roughly 15 LLC's and we do cost segregations on every purchase we make and I run a loss every year. Once you pull out the depreciation, we have a healthy profit as well I have realtor income and trust income.

Anyway, I have about 7 or 8 properties that I would love to refinance and my brother (business partner) probably has 7 or 8 as well.  Does anyone know if I am even allowed to do this?  Does anyone know a company that lets their MLO's submit for their own properties?

Thanks,

I think @Trent Werner offers this service.  Our company Uptown Properties provides marketing, tenant screening, lease signing, and tenant placement for a fixed fee.

Feel free to check us out on google!

Cheers!

@Kyle Gatesy

Hey Kyle! Congrats on the 36 unit.

I am a property manager and a multifamily syndicator. We own about 200 units and manage about 750.

When we were a lot smaller, we were approached by a newer multi family developer who negotiated extremely hard on a 70 unit new construction apartment, (2.75%). At the time we were managing 100 units and this represented a lot of revenue for us, we provided a ton of service to this client and we learned a ton through out the process. Looking back at this situation, it was a win win for us because we were able to grow out of being a 1 man show and into more of a company. And as well we learned a bunch about multi family that we didn’t know. We certainly made some mistakes, but our client still has his 2.75% rate on that original property (saving him 10’s of thousands every year) and we manage a couple others for him as well.

Hope this helps! Feel free to reach out if you have any specific q’s.

Cheers!

@Alicia Marks my wife and I bought a beach house in Seaside Oregon because we love going there during the summer. We got a great off market deal and invested about 100k into the remodel. We refinanced the property after the value add and got all our cash back.

Now it does 80k a year in revenue and the mortgage is $24k. We need to refinance!

Cheers!

@David Gubb you should check out Verivest. It is a company that verifies and validates syndicators claims. 

Cheers and good luck!

In 2017 I did a cost seg on a single family home that I was renting and wrote off about 40k in taxable gains.  I have kept buying real estate since then and performing cost segs.  You can perform cost segs on properties that you already own... otherwise start buying long term rentals.

Also look at the "masters exemption", you can rent your house for 14 days and receive income and not pay taxes on it.  You could have your business rent your home from you and create an expense and receive tax free income.

Cheers,

We met our goals of:

Purchase 4m in real estate.  Create 52 podcast episodes. Hire Operations Manager.

We were close on the goal of:

Syndicate 70 units, we purchased 90 units, but we only syndicated 46 and took down 44 in partnerships and solo.

Pretty sure I’m not allowed to send links off BP, so if you just google westside investors network you’ll make it to the next one… you can also join on zoom.

it’s free ce credit for realtors.

Hey Mohamed,

I’m not aware of Hillsboro groups, but the west side investors network (win) meet in SW Pdx on the third Thursday every month in Multnomah village at the lucky lab at 6pm