All Forum Posts by: Daniel G.

@Brandon Sturgill I am looking at Multifamily, 75 - 120 Units. So, is this purchasing at 60% of ARV something that you follow to help stack the odds in your favor? Could you expand as to what thought goes into this? Thank you.

All, I have a question regarding cash out refinancing as a means to hopefully provide investors with a return on capital. My question is; is there a rule-of-thumb or ideal acquisition structure that would help you get to a 100% return on capital? I understand the NOI implications in getting a higher appraisal.

So, is there an ideal LTV to get when you acquire the property to help you get 100% return on capital? Meaning 70%LTV year 1 -> 75%LTV year 3 (refi). Or 75%LTV to 75%LTV. Generally speaking what measures do you take during the acquisition of the asset to help stack the odds in your favor?

I would greatly appreciate any and all feedback!

All, I have a question regarding cash out refinancing as a means to hopefully provide investors with a return on capital. My question is; is there a rule-of-thumb or ideal acquisition structure that would help you get to a 100% return on capital? I understand the NOI implications in getting a higher appraisal.

So, is there an ideal LTV to get when you acquire the property to help you get 100% return on capital? Meaning 70%LTV year 1 -> 75%LTV year 3 (refi). Or 75%LTV to 75%LTV. Generally speaking what measures do you take during the acquisition of the asset to help stack the odds in your favor?

I would greatly appreciate any and all feedback!

I've always been curious about this concept of high yield. Especially as it pertains to high yield bonds as a competing opportunity for investors to pursue rather than a passive investment in a Multifamily Property. At least in my group of investors this type of security is attractive to them. Whether it's international debt, corporate bonds or the like, the higher the risk (junk bonds, BBB bond rating) the higher the yield. Which is similar to the whole "value add" play in real estate. At the end of the day an investor would evaluate the opportunity's risk when making a decision. Does anyone have any thoughts on the comparison of corporate bonds and passive roles in a multifamily property? I know the differ greatly on the distributions side of the equation. So my question pertains more to risk and opportunity cost.

 

Hi guys, I'd like to ask if anyone has been successful in getting out of an inherited laundry service contract after purchasing a MF property. I would like to try to submit a notice of insufficiency/default (anyone have a template?). Any other ideas? I am not happy with the level of service provided by the current company and have been in contact with a seemingly better competitor.

Thank you,

Daniel 

Hi guys, I would like to ask if anyone has a template for a notice of insufficiency/default for a contract service provider. I'd like to try to get out of a laundry service contract that I inherited in buying a property by sending a notice. If not, do you have any other ideas as to how I might accomplish this?

Thank you,

Daniel

You could start by looking at nearby comparable properties to see if they allocate any of these costs to the tenant via RUBS or something else. 

I would go somewhere between 55-60% for Operating Expenses and add a line-item called "non-routine" in which you use a dollar amount on a per-unit basis. For example $600 X (number of units). Always, always do non-routine and make sure you adjust taxes somewhere around 75-80% of purchase price. This should help paint a more realistic picture.

@Anthony Chara would you happen to have an estimate as to how much half of the Title company's escrow and recording fees would cost for this 56 Unit deal in Ennis, TX? I have accounted for nearly all of my closing costs but am missing this one. I would really like to know prior to closing, which should take place at the end of this month.

Hi BP Community, I am on-course to closing a 56 Unit deal in Ennis, TX by the end of this month. I have nearly all of my closing costs accounted for but am missing the estimated Title company's escrow fees and other recorded fees, which are split 50/50 with the seller.

Could anyone help me get an idea as to how much this would cost?

Thanks in advance,

Daniel