All Forum Posts by: Kyle Jean

We have worked previously with Chris Brown of Edmund & Wheeler, Inc who specialize in larger scale 1031 requests (his site can be found via Google). He is a good resource.

 Ouch. I'm sorry to hear that. Best of luck to you, I believe you will be able to turn things around.

 Correct although you could potentially get a waiver down to ~$880k or so.

Hard to say without reviewing your personal financials and resume and more information about the project. My gut tells me you would be better going the Freddie Mac small balance route with a lender like Arbor or Sabal. That program is much more cost effective for smaller projects and would still be non-recourse.

HUD does not have hard minimum experience requirements but they want someone generally credit worthy and financially sound.

Generally over 10% to be interested.

Were you able to secure a long trail of historical rent rolls before purchasing? I see sellers fluffing the books with weak tenants to sell at an inflated price and then the buyer ends up with a headache.

I think previous suggestions are correct - let tenants know that new management will be much more stringent on collections, and also try to raise rents if possible. My biggest concern is that it doesn't appear as though you are setting aside reserves in your expenses. I know this can appear "below the line" but on a 41 unit project you will have real, major costs down the road that you should be prepared for on top of your regular OpEx.

A 16 unit multifamily can qualify for a 35 year fixed rate loan under the HUD 223(f) loan program, however the fixed soft costs involved with that program generally are not economical for a request of that size.

It looks as though they are a broker versus a direct lender, but there's nothing particularly wrong with that. The Fannie and Freddie programs and leverage are the same regardless of provider, so if they're offering good customer service it's probably worth working with them. I imagine they will place the loan with a group like Sabal, Arbor, Hunt, Pillar, etc. All of them are very experienced lenders/servicers.

I have some experience with LIHTC in Arizona. We turned around a multifamily property in a tertiary market out there. Novogradac is always a good consulting resource if looking for a contact to guide you thru application and allocation.

Please do not spend that type of money on "coaching". Take a few seasoned commercial loan officers, CCIMs, brokers, and others out to lunch at a fraction of the cost - I promise you'll learn a lot more than you will from any paid "mentor".