All Forum Posts by: Gino Barbaro

@Michael Dallas

DM me and I will send you our checklist

Gino

@Jorge Abreu

It comes down to John Maxwell's quote: People want to do what you do, but are they willing to do what you did.

Real estate is thankfully not rocket science, but it can be challenging and unforgiving. Thanks for the post

Gino

@Robert Rixer

Old buildings are going to be in trouble down the road. Landlords are going to have to fix these properties, and with many cities looking for affordable housing solutions, these owners may be in trouble.

Renting appears to be more in demand, and is currently cheaper than buying. Immigration plays a big role in this, so it would be hard to predict unless you know what happens with population growth.

I think it's still a basic human need, and one that the government can not provide at a reasonable cost. Landlords will still be needed to perform this service.

Gino

@Zigmunt Smigaj

Syndication is only one part of multifamily. You still need to buy the asset, finance it, and manage the deals. I bet passive investors had been working with coaches to underwrite the deals they've been investing in the past two years. I guarantee most of those deals would not have been funded.

Gino

@Matthew Posteraro

It comes down to how much capital do you have to allocate, and how many units you are looking to acquire with your capital. There truly is no right or wrong answer. Some sleep better at night with zero debt, while others love to use leverage and are willing to take on more risk.

Community banks right now will go with 80% LTV. Most agency lenders, Fannie/Freddie have been asking for 65%, knowing that there was problems on the horizon.

You need to ask yourself where do you feel comfortable with debt levels

Gino

@Philip Anderson

I would start with info from brokers, such as Cushman Wakefield, Marcus & Millichap. CBRE, and Colliers. I really like Berkadia's content and the IRR website.

This will give you a baseline of jobs, population, costs, rents. When you pick one, It's time to start calling brokers. I can intro you to our Self Directed IRA contact. DM me

Good luck

Gino

@Alyssa Lake

It depends upon many variables, such as age, condition, location, the amount of capital you need for repairs and unit turns. Is it 83% physically occupied, or economically occupied? What does delinquency look like?

This may be a seller financing opportunity. The banks requiring a bigdown payment because of the perceived risk of a property that is not stabilized. The agencies want 90% for 90 days for stabilization, and I wouldn't be surprised that when the new owner takes the property over, occupancy drops below 80%.

What are rents currently? And where do you think you can get rents.

We've been able to secure 80% loan to cost on these types of deals with a credit union recently. 6% is a good rate, but I would see if you can shop around the LTV

Good luck

Gino

@Kevin Rodriguez

You can always buy real estate, but you can always sell or exit. Actually, now is the time you should be buying. If a deal makes sense with the cost of capital where it is, then it will make even more sense when the cost of capital goes down.

Same thing happened in 08-10. If an operator had debt locked in, who cares what the value is if you aren't selling. You can pay the bills, and wait for the market to recover. Problem is if your debt comes due in a down market, which is what's happening to a lot of operators with floating rate. If they exit now, they'll lose a lot of money.

If you take a long term approach, and treat it as a business, then the investment is superior to the stock market.

Gino

@Marci Stein

I would replace it. If you caught it, the next buyer will, and will ask for a retrade.  It seems as if you got the money off the deal, is whatever you saved should cover the expense.

If you're in the business for the long term, and you do the right things, you will stay in business 

Gino

@Sean Conroy

The cost of building is not going to go down, unless you're looking at the debt component. I would at least get the permit to build as many units as possible.

Then, you can decide to either build, package the whole deal to sell and roll the equity into something else, or refinance and buy something else.