All Forum Posts by: Douglas Vogel

@Jason Coleman I like the cashflow and growth potential. How is the price per unit in the MF space?

@Jay Hinrichs thanks! I've been asking some attorneys and they "hmmm" and "haaa" about it and say well for only 18k I could set you up with a SEC filing for a syndication and you can think bigger. I'll continue to get consults but it seems like everyone does this for SFH and it appears to be more uncommon with MF. Just thought I'd get the general opinion!

Hey guys,

I was curious, if you have an investor willing to lend money on an asset and take a second position lien, is that considered a security by the SEC? Or are you within your the laws to give a lien in return for funds without having to file any additional paperwork with the SEC? I know most people will not be lawyers and will advise to seek legal advice, but looking for a general consensus.

To your success!

-Doug

@Kiley N.

How are things going? Just thought I’d check in and see what you were up to!

Shoot me an email when you get a chance!

-Doug

I am curious, if you find someone willing to take a second or third lien on a property behind the bank, is that considered selling a security? I know most people won't be lawyers but trying to see how close to the line that is...

To your success!

-Doug

@William Glass I have one individual who has been pretty good if you still need a local bank contact. Shoot me a PM and I can share the info. Maybe we can even put our heads together on the next deal!

@James Wise That is an awesome article and we actually used it when we went to visit Birmingham to meet some new team members and take a glance at the market. Would love to connect and share ideas / thoughts about the market and neighborhoods!

I am currently divesting all of my SFH into MF homes in the Birmingham AL area. My brother and I are looking for individuals who understand the power of a team, and can add value to our team in order to purchase off market Multi Family deals in the greater Birmingham area. Not everyone will be a good fit, but communication and investing strategy are the most important traits.

Our current investment strategy is to purchase off market MF properties with value add opportunity. We look for 'light cosmetic rehabs' to enrich the lives of our tenants and increase the rents to fair market value. We also specialize in decreasing expenses in order to increase our NOI of the property so that in 1-3 years, we may cash-out refinance and move on to the next property.

Our partners will need to have skin in the game but also play a vital role in decision making, investment strategy, and overall influence on the deal. We are looking forward to hearing from you and hope we can connect soon to see if our team is a good fit!

-Doug

[email protected]

Feel free to reach out. I am in the Birmingham AL market and looking into Huntsville but in the MF sector, its very competitive and expensive compared to Birmingham. Happy to help in anyway I can.

@Florent Breton I would agree with most people and say that you should include the refinance in your calculation. I am a very conservative person as it sounds you are, and I like to give people the worst case scenario if we are going to be partners on a deal. But, one thing I have learned, although you want to underwrite and display conservative numbers, they have to be accurate numbers based upon your forecasting. Otherwise no investment make sense. Not including the refi, would be an unrealistic (if you plan to refi) forecast, thus skewing all your numbers. 

This will become a factor when you are looking to raise money for a deal and you plan for a refinance but don’t show numbers for refinance. I’d also say you may be potentially losing out on deals if you never plan to refinance because you are not able to put your capital to work as effectively as if you refinanced and moved to another deal. 

Just my thoughts. Let me know if I can help in any way.