All Forum Posts by: Dave DeMink
Dave DeMink has started 3 posts and replied 7 times.
Post: Question on LIHTC conversion to Section 8
- Investor
- Denver, CO
- Posts 7
- Votes 5
@Steve Morris - thank you abs Yes, the LURA will be requested.
Post: Question on LIHTC conversion to Section 8
- Investor
- Denver, CO
- Posts 7
- Votes 5
Hello BP Community -
We are looking at a project that currently has a LIHTC designation.
Our intent is to transition current tenants and leverage section 8 vouchers to increase rents.
Curious if anyone that may have done this before has any feedback, "gotcha's", and things we need to think about before taking on the endeavor?
Thank you ahead of time for any feedback you may have.
Dave
Post: Fanny Mae broker in Denver for multi family refinance
- Investor
- Denver, CO
- Posts 7
- Votes 5
@Julee Felsman - all
In one building
Post: Fanny Mae broker in Denver for multi family refinance
- Investor
- Denver, CO
- Posts 7
- Votes 5
Would anybody be so kind to share a referral in the Denver market for a nine unit multifamily refinance via Fannie Mae?
Post: How to pay investors in 1st few months of value-add syndication?
- Investor
- Denver, CO
- Posts 7
- Votes 5
@Kyle Mitchell - thank you for the clarity. This thread has been an incredible learning experience. Thank you for your input and certainly the path we will take
@Dave DeMink You need to be sure you understand the difference between Return of Capital vs Return on Capital. You don't necessarily need to payout the 8% pref immediately and once the property is stabilized and at the 10-11% you mentioned you can increase the payouts so you "catch up" on the balance owed from the pref at a later date. The key here is the communication to your investors explaining why there is lower returns to start for a value add play (easy enough to do). As long as your business plan and communication to your investors is clear then you should have no issues paying out lower in the first 6-12 months until you can hit that preferred return once stabilized.
Post: How to pay investors in 1st few months of value-add syndication?
- Investor
- Denver, CO
- Posts 7
- Votes 5
WOW - thank you BP community for taking what might have been a simple question for most and making it crystal clear for me.
Post: How to pay investors in 1st few months of value-add syndication?
- Investor
- Denver, CO
- Posts 7
- Votes 5
Hello, BP community -
First-time poster here, and appreciate your guidance on the below question.
I am curious about how we should be thinking about paying investors during the first few months of a value-add syndication when they have a preferred return (8% in this case), but the property will not be returning 8% until we stabilize rents and get them to market rates. The current return is more like 6%, an after stabilization, more in the 10-11% range.
Any feedback on how we should be thinking about this would be helpful
Thank you
Dave