All Forum Posts by: Jordan Archer

@Alina Trigub Thanks for the advice. Can you give an example of how a "waterfall" split would work?

@Brian Burke Thank you for the direct answer. Very helpful!

@Tj Hines No coc of 10% anywhere today. I know demand for multifamily is still strong, but I'm hoping for higher Cap rates once the market corrects. We shall see...

Hello BP,

I’m an active investor, flipper and realtor (#3365094) in the South Florida Real Estate Market. Over the past 2 years I’ve purchased, sold, rehabbed and managed dozens of single family and multi-family properties in Palm Beach, Martin and Saint Lucie Counties.

Now, I'm building capital for the acquisition of a 10 - 30 unit apartment complex, with an approximate COC return of over 15%.

Any and all property management would be handled by me, so your investment would be completely passive. I am also affiliated with the NRT Property Frameworks property management team, and have a list of qualified referrals.

Due to the property size, I expect I'll require at least $1mil for the downpayment on an 80% LTV loan...depending on how much I can get the seller to carry back.

I'm pursuing markets with great job growth and stable economic situations. Also, the properties that I consider will be ones where I'll have the opportunity to force appreciation through minor renovation and increased rents; the properties will already have equity when they're purchased. Further, I am only considering properties that can be acquired at CAP rates higher than market average.

I've gained some momentum identifying properties of this nature through pocket listings brokers have sent me from Orlando, FL. I'm continuing to build relations with brokers in other cities as well.

Let me know if you or your affiliates are interested in working with me on a future project.

Thanks,

Jordan Archer

772-577-0084

Hi BP,

When using syndication to purchase an investment property, I understand that you would normally pay your LP's between 8% - 10% preferred on their investment, and then split the excess (somewhere between 50/50 - 70/30).

In regards to the initial reserve account you would establish for the project, how would you structure a pay back for this? Also, do the limitted partners get the same 8% - 10% preferred return on this capital as well? 

Running through it in my head, I would assume that for the first year of the project you would take the excess profit (after the 8 - 10% preferred return), and use that to displace the money in the reserve account. Once the reserve account has been displaced, and the investors have their capital back (designated for the reserve account), you would commence with the 70/30 split (or similar). Is this correct?

Yes, look in to it now! 

With evictions you need to do things in property order and within certain time requirements for it to be legally enforceable. The longer you wait, or if you do something incorrectly, the longer your rental will go without cash flow. Do check your state eviction rules. 

good luck

@Daniel Haberkost Thank you! I'm making the 10 unit my next move, because I want to scale faster. I'll have about 100k from my HELOC, so a 500k purchase is the most I'll be able to do. I'm being a bit optimistic about the 10 unit, but that's my goal. Once the market comes back down I'm going to make the move. Things are just too high right now.

After that, I'm going to be getting in to syndication, so I'm looking to partner with someone who has the experience. 

Let me know if you can think of anyone who's a good syndicator!

@Martin Elkins

Yes I am actually starting a meetup for it. I actually did that the other day, and I'm waiting for the meetup to be approved by the site admin. Right now it's only being run through BP, but that's soon to change!

@Roger Wilson haha I love that!

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $155,000
Cash invested: $6,000

Better late than never with this post!

This is my first income property that I've been house hacking with. I bought it at a great time in 2014 for $155,000, and after owning it for 5 years the value has increased to over 260,000 (based on my last bank appraisal this year).

Purchasing this property has easily been one of the best decisions of my life. I really got lucky with the appreciation on this, and won't expect this level of gain from any future project.

What made you interested in investing in this type of deal?

I was very interested in buy/hold, and at the time I had a job which made financing very easily. I wanted to house hack very badly, and this made perfect sense.

How did you find this deal and how did you negotiate it?

This deal was found through a real estate agent, and it was purchased at list price. Actually I got lucky, because list price was 175k, but the appraisal came back at 155k, so I got a better deal than expected.

How did you finance this deal?

FHA 3% down

How did you add value to the deal?

It just needed a good paint job, cleaning, and a good tenant. Over the past 5 years of owning it, I've remodeled both bathrooms on the side I live in, and partially updated both bathrooms on the tenant side. There are other small improvements made, but nothing too major.

What was the outcome?

I've had a solid tenant for over 5 years, and It has appreciated in value significantly.

I will be taking out a HELOC against the property this year in order to invest in a 10 unit multifamily apartment complex. However, I am going to wait until prices come back down, because I'm hoping to time the market right again.

Lessons learned? Challenges?

I would have set a minimum yearly rental increase in the lease. Also, I wouldn't have told the tenant that I am the property owner. It is hard to separate business from personal when your neighbor is your tenant. Finally, I would have kept things more rigid with inspections and lease renewals with the tenant.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I'd recommend Jordan Archer as your real estate agent ; )

Just wanted to get the word out that I'm starting a meetup for BP members local to Martin Count, FL and Saint Lucie County, FL. 

Cities included are: Stuart FL, Hobe Sound FL, Jensen Beach FL, Palm City FL, Port Saint Lucie FL, Fort Pierce FL. If you live out of these bounds feel free to stop by.

The first event will be Nov. 12 from 6:30 - 8pm at the Starbucks in Stuart, FL located at 2294 SE Federal Hwy, Stuart, FL 34994. 

At this event there will be no speakers. It's just a chance for local members to get to meet one another in person, and spark a positive business relationship. 

There are no fees to attend.

See you all there!

P.s.If you have any questions feel free to message me or respond to this post.

I'm organizing a meetup on Tuesday, Nov. 12 from 630pm - 8pm, where BP members local to Martin and Saint Lucie County get together and grab some coffee for a social networking event.

The meet-up will take place at Starbucks in Stuart @ 2294 SE Federal Hwy, Stuart, FL 34994.

Let me know if you can attend!

Look forward to seeing you

To all accredited investors,

I'm offering equity positions in commercial multifamily projects. You will have the opportunity to earn a passive and preferred return of 10% on these investments, as well as a negotiable equity position upon the sale/refinance of the property. 

You can expect the term of the partnership to be between 5-7 years. 

These project will become available once the market comes down in the next 1-2 years.

Markets that I'm focussing on will be Orlando FL , Atlanta GA, and Charleston SC. 

If you have any interest, call me at 772-577-0084.

Thanks and have a great day.