All Forum Posts by: David Monroe

@Steven Stohlman Multifamily Millions by David Lindahl.

@Bobby Nilsen Go to CCIM.com and find the highest level of commercial investment brokers in the world. You can search by area, name, and specialty. 

Brokers still on loopnet.com have not figured out that nobody searches on loopnet anymore, so I would be cautious looking for a broker through loopnet.

@Chris Carson You have a unique opportunity with the second building. Have you done a market analysis to see if there's room for residential units, and if you can re-purpose the other building into mixed-use with the ground floor retail or office and the second floor residential, then that would be the first strategy I would look at.

You mention it's in an opportunity zone. Did you sell the building your leaving and have capital gains that can be put in a QOF, qualified opportunity fund? If so then the reconstruction should be at or above the original basis, not knowing what your paying for the new property. If you don't have money due capital gains purchasing the property, then you would not benefit from the tax advantage. 

If it's downtown, check with the zoning department and planning commission, there should be no problem getting approved for mixed-use and may already be zoned for it..

The other strategy you could look at is selling the other building to a QOF after getting the site entitled for a mixed-use asset. There would be a cost to getting it entitled but you would a more valuable and marketable asset with the entitlements in place first.

@Brandon Metzler If they would be included in one transaction, Yes! You can get a blanket loan for all the 4 units if they are separate owners.

Even if they're purchased in separate transactions with multiple owners, you still should underwrite the whole portfolio as one for future projections, depending on your exit strategy.

How you present the proforma and executive summary to the lender will depend on how you purchase the assets.

@Noah McBride If you want me to help you underwrite the deal and I'll let you know everything I need from you to help make a go/no-go decision.

We underwrote a 192 unit there about 4 months ago and really like the Mustang area, Southwest part of OKC. We were told it has the best school district in the market and there was very little rental competition there. We had travel up to 5 miles to get rent comps.

HUD issued guidance 2 years ago, by not allowing convicted felons on a blanket basis is in violation of Disparate Impact laws. The only 2 violations you can say no without cause is drug trafficking and manufacturing. Yes, that means you cannot, without other cause, ignore an application from a pedophile.

That said, you can have a clause in your lease that has a limit on how long a guest can stay, but you cannot prevent daily guests, unless that guest has caused problems and you filed some kind of injunction against that person. 

Disclosure - I'm not an attorney and do not know the laws in your state so check with an attorney before taking any action.

If you listened to my podcast you would know exactly what my goals are for 2019.

@Mike Ganske I'm not familiar IL law, so double check with an attorney, but you should be able to ask the broker, or seller if there's no broker. If you explain why, they shouldn't have a problem with it. Be prepared to get vetted by the broker.

@Div Bhingradia For your first investment, with no-one on your team having shopping center experience, NO!

Here's why. As you mentioned, the center is never 100% full. The traffic is way too low to get any national credit tenants, and with a recession looming on the horizon, retail spaces with mom and pop tenants are the first to go vacant, and they stay that way for a long time.

Another negative is the cost to re-tenant. No one tenant is alike, and your tenant improvements will be costly. You can recoup them in the lease but you still have to come up with the money on the front end.

I hate to be so negative on this post, but I invest, broker, manage and develop multifamily for a reason.