All Forum Posts by: Dennis H.

55% expenses - yikes! A well run property should be under 40% and preferably, closer to 35%. Perhaps an opportunity there for you. 

Chase vs Freddie Mac - Small Balance Loan (SBL). Those are normally the top 2 products for multifamily loans between 1-5 mill.  The trade-offs, as mentioned, are interest rate vs leverage and fixed vs floating.

How did this turn out? What did you give for TI's & LC's and what lease length were you able to get? 

The Concord Group (not based in Concord) http://www.theconcordgroup.com/services/

They're phising for value and most likely not serious investors. Happens all the time. 

To add to Scott's comment, you could do that and negotiate a promote for your work rehabbing the building and then selling it. Promote are normally calculated off of IRR, so time would be factor in your holding period since IRR is a time return metric.

However, you could negotiate a promote off of the equity multiple too if you plan a long term hold. You can agree to a "transaction date" before hand, say 7 years out, and calculate off of that even if you continue to own the building. All depends on your agreement with possible investors if you go that route. Get that promote people!

Are the options 5... 1 1 1 or 5 ....5 5 5 or something else entirely?

Have you reached out to any of the other members of the group to provide a bridge loan to you? 

You should reach out to the DR's in the building to see if they want to buy-in to the acquisition. This typically leads to tenant renewals and less problems. The only downside is you are then dealing with Dr's who have a minority share of a building and think their thoughts are important. 

If the money is collected before hand and you act as the managing member, you shouldn't have any issue. 

I know you aren't asking this, but dealing with different investors is a giant pain. A TIC structure or like structure is a good way to raise money but leads to too many cooks in the kitchen and reduced loans to value. A lender wants comfort that someone in the transaction has the capital to put in a deal if something goes wrong. If they can't find that person, the loan gets haircut.