All Forum Posts by: Chris Jackson

@Brandon Thomas  and @Simmy Ahluwalia  contact me directly. We are active in ATL.

Specifically Clayton and Henry. 50 units and up.  We are closing on a 60 unit at the end of December.

@Deanna S.

Call the local Federal Credit Unions. The AMs will be more like 20 and 25 years but there is usually no prepay and the local banks know the area really well. 

They do small loans as well. Great opportunity to build a relationship with local banks for when to take down a 10,20,30, 50 plus unit :)

We have an individual LLC for each one of our properties.

Even with our SFRs, our holding company is the sole member of each of those property owning individual LLCs. This allows you to get a blanket loan on pools of assets from a bank if you wish. The holding CO is the LLC on the mortgage with the individual LLCs as the assets that are the collateral as well as any personal guarantees one makes on the loan.

Also if you sell as a bunch of SFRs as a package you can use the holding company entity that sold the package and can then have only 1 LLC, the holding LLC be the tax entity that can take advantage of a 1031 as opposed to 25 individual LLCs that must each now purchase a new property to adhere to the 1031 guidelines. ( I am not a 1031 exchange expert so don't quote me on that. I can give you a name if you wish if 1031 potential is a something you want to consider from the beginning so you don't paint yourself in a corner)

@John Wysock

We own multifamily in Syracuse as well as SFRs. Purchased 20 since February.

@Cerwin Haynes is correct. You need to know the market really well. Stable cash flow opportunity with the right team in place.

John contact me directly if you would like any info.

I am a big fan of local credit unions.  

You have to prove yourself though.  They like experience. That's though when you don't have any but my first commercial loan ever was done in 2010 for my second deal.  That was a really tough time to get a loan and they believed in me.

Local banks and credit unions also know the area so they can adjust a bit from a larger macro brush used by bigger banks.

Positives of local banks:

- you develop a relationship so you can someone you know and talk through a deal before you even offer on it

- less broad strokes on requirements

- longer fixed terms 10 year fixed is not uncommon (think hedging future interest rate increase)

- most have no prepay penalties (this is huge and give you many options) If you cash out refi after a BRRRR and then 1 to 2 years later a buyer shows up a your door with some unbelievable price, you can sell without prepay penalty calculations. That is massive options for you.

- some credit unions because they know the area will finance purchase price and constructions cost or % there of (if you have a track record)

Negatives:

- sometimes rates are slightly higher

- Amorts are usually 20 to 25 years (so payments are higher)

- you have to PG most of the time (personally guarantee) 

- anybody in the partnership that has over 20% equity usually has to PG on the loan 

@Aaron McKeehan  

What does the Outlook app on the iphone do to filter?  That's interesting

Yes spending time at end of day preparing for next day or morning of prepping for day is a really good habit to get into to focus your energies on what are the highest value activities one can spend their day.

Thanks @Kevin Leonce

Last week was a busy week.  Closed 4 more SFRs to add to our single family rental portfolio within 5 business days.  Then got word that our final pieces of negotiations on a deal we have in contract, 56 units in Atlanta, were accepted and we are moving forward.

I love real estate.

Momentum is something powerful that I have begun to pay more attention. I am going to try to articulate it but great things just happen the more everything is happening at once. Maybe you are just more primed to say the right things, call the right person, step out of your comfort zone and ask for more on the deal then you would while things are slow.

I've begin to pay attention to my own thoughts when I hit a lull and I have started to retrain my brain to say "Ok, we need to generate momentum, we need to take some big action today and in the coming days"  When I do that a few days later there are high five moments, leads that just all of a sudden come in

A Friday night after an absolute crazy week where you need a break, a lead comes in that you have to analyze and get an LOI in for a vacant 20 unit you know you can BRRRR. (looks like we didnt get this one but doesn't matter I wanted to keeping riding the momentum wave)

Also I need to check-myself with my own sense of overwhelm.  I was definitely feeling the glazed eyes when I was playing with kids and talking with my wife (so bad to do that to your kids and especially your spouse.  Its so disrespectful. My wife works too and when she catches me and says, you were not listening to me were you, that's so horrible to do to the person you love)  Those glazed eyes come from focusing or being distracted by overwhelm.  Overwhelm can come from alot of momentum too. So I woke up really early a few times last week and now this week and just POWERed work.  I just checked items off the list and was able to breath again. Put in a 15 hour sesh a few days last week and then left work at 7 and said to myself "you can not be a total non present jerk to your family and wife" so I just did not think about work when I got home (so hard to do. I am not great at it). 

Forcing myself to dig deep and get through the overwhelm allowed me to keep the momentum.  

I like my sleep and need it to power but there are sometimes where you just have to get up at 4am before the kiddos wake up and just get it all done.

I am going to pay attention to momentum even and improve honing my skills to know when its ending before you have to go to the big dig deep in order to keep it going or revive it.

Anyway this turned into a bit of a rant but I wanted to share my thoughts because I know others out there can feel the overwhelm as well as the lull and you need to manage both. Get yourself out of the lull whatever it takes and then fight to keep the momentum even if it means a string of big power sesh's to keep the momentum going.

When you do that great things happen. I love real estate. I love small business.

Good luck out there. Get your momentum on.

@Joseph Gozlan    Great answer.

One really needs to hone in what type of asset they want first. Then you can start drilling down into sub market/asset class/cap rate specificity

Its like peeling away the layers of an onion.  

I think the best way is to really ask a savvy broker in the area but also ask about asset class. 

"What's a typical cap rate for a C+ 30 unit in xyz submarket that is stabilized with some possible moderate rent pushes?"

Also cap rates go up on the smaller buildings. So thats important too. The same 30 unit I just talked about in xyz city would have a lower cap rate if it was a 100 unit plus building in the same exact area. (thats a hint too. if you are superster operater and get a 50 unit to perform with jaw droping  T-12 numbers you may be able to cross into 100 unit plus cap rates for the same area because most smaller unit count buildings are not run as well because they mainly are owner/manager operators or with smaller PM shops that can be hit or miss with their management styles) 

Specificity is key

@Account Closed brings up a good point, if he only cares about a few of the factors he may want to see a weighted average based on only a few of his desired factors. I may want to the see the same or some different factors that I would view important.