All Forum Posts by: David Lilley

@J.T. Baker reach out to my business partner @Dane Ohlen . He does some fantastic work! He does flips and all of our multifamily rehab projects.

@Haley Powell, what is your budget for a house? I can definitely point you in the right direction. Are you looking to buy and rehab while living in the property? Feel free to shoot me a PM.

@Cameron Brulotte search for all the brokerages doing business in your target market and sign up for their offerings. 

@Justin Elliott, I've had this one before. I told them that many people probably thought we were at the top back in '15 and look where we are now. Are you going to leave your money on the sidelines for 4 years waiting for the crash that may never come?

Reach out to @Dane Ohlen. Best in the biz

@Matt B. net worth must be at least equal to the loan amount (can be combined net worth of sponsors) and post-closing liquidity of 9 months worth of debt service.

@John Vanhara Fannie and Freddie have some of the best products you can get for multifamily (5+ units) with loan amounts over $1mm. 30 year amortization, interest-only terms, rates under 4% currently. Local banks may offer these loans but you can reach out to the big groups like CBRE to get these done. Talk to @William Givens . He's the authority in all things debt.

Thanks @Scott Meyers!

@Justin Pilotte all great questions. Due to the low occupancy, the seller knew that potential buyers would have an issue securing long-term permanent debt out of the gate. Knowing this, he was ready to offer seller financing.

I believe the market value for a stable property this size is close to $2mm.

We plan to refinance to long-term debt as soon as we get to approx. 90% occupancy. Shooting for 2 years or less.

The remainder of the capital raised will be for our reserves (property is currently in the red) and capex (adding covered RV storage, gate automation, surveillance, etc.).

@Cody Charfauros Caddo Mills is small but in the path of progress. Growth from Dallas is moving east down i-30 and east from Mckinney down Hwy 380. This property is right on Hwy 380 which is a very heavily trafficked route and in close proximity to Lake Lavon, demand for RV storage is very high, and there is a new multifamily building adjacent to us as well. 

@Chris Mason, ah! Good point. Never had to engage a mortgage broker for residential. I'm sure you would know better than I.

@Matt Bertsch being a massive value-add opportunity, it fit our business plan perfectly. So, equal in that regard and very similar in others. I have found it to be MUCH simpler to operate. Not management intensive, and very low overhead. We are not looking to acquire anymore self-storage in the foreseeable future since value-add deals in this arena seem to be scarce and I generally enjoy multifamily more, but definitely an asset to have in your portfolio.