All Forum Posts by: Paul Khazansky
Paul Khazansky has started 14 posts and replied 91 times.
Post: Baltimore financial benefits?
- Investor
- Washington D.C.
- Posts 94
- Votes 18
Yes, cityview is the "go to" source for getting info on zoning, business incentive zones, floodplain zones, etc. in Baltimore
Post: Using private money for down payment
- Investor
- Washington D.C.
- Posts 94
- Votes 18
It really depends on the bank. If it is a conventional BofA kind of bank, they will often want to see "seasoning" of 2 to 3 months. We, as a private lender, do not necessarily care about seasoning because whether it is a gift or a loan, the lender is secured by first lien position on the underlying real estate.
Post: What to do with a alf facility
- Investor
- Washington D.C.
- Posts 94
- Votes 18
Make sure to analyze the market before you put down any money on the property. And yes, understanding the local regulatory landscape is huge.
Post: Launching a Property Management Company
- Investor
- Washington D.C.
- Posts 94
- Votes 18
Our real estate development company is about 6 months away from completing our biggest project to date - a 59 unit building located in Baltimore, MD. As part of this development, we decided to enter a property management business, with our building being our first "client". We do have the backbone of a very capable partner who's been managing smaller properties for us to date (4 - 6 unit buildings), but this property management initiative would be taking the concept to a new level.
I'm really curious to hear from experienced property management operators about what's crucial to get right in the initial stages of launching such business. Based on my review of prior threads, it sounds like Appfolio is software of choice for many professionals in the field. Surely there are many other crucial layers to property management business that we should pay attention to, so any advice would be much appreciated. As an FYI, managing our own building is our first step; going forward, the goal would be to become a third party property manager to (hopefully) thousands of units.
Post: cell towers contact in Baltimore
- Investor
- Washington D.C.
- Posts 94
- Votes 18
no takers?
Post: In need of a good rehabbing proposal software for a 10 unit building
- Investor
- Washington D.C.
- Posts 94
- Votes 18
i don't believe so, not for a 10 unit building job anyway
Post: In need of a good rehabbing proposal software for a 10 unit building
- Investor
- Washington D.C.
- Posts 94
- Votes 18
what software? Your GC's estimate for various costs, and projected financials should be all that you need to put together a package for lenders.
Post: Apartment buildings with commercial store fronts
- Investor
- Washington D.C.
- Posts 94
- Votes 18
I'd start treating the multifamily valuation and retail valuation separately, though they're obviously a part of one whole.
On multifamily, certainly figure out the vacancy situation, and see what comparable apartments rent for, which is crucial to your underwriting.
On retail, see if you can get at least an indication of interest letters from a national retailer. If not, still shoot for a triple net lease, and see what sort of pre-commitments you can secure. A NNN of $26/sf vs $18/sf is a big swing in evaluation. Id put the property under an LOI and try to negotiate a 45-60 day study period to do due diligence and locate a retail tenant.
Having a retail component certainly makes this a more challenging transaction since you have to do a good job with both asset classes in order to succeed. Good luck!
Post: Multi-family buying strategy for beginner
- Investor
- Washington D.C.
- Posts 94
- Votes 18
Originally posted by @Bryan L.:
- I really advise against multi-family properties for newbies unless you have some family history and background in RE. You can really lose your a$% in real estate, and multi-family properties compound that potential. A lot of people on here will tell you that they are "safer" because you have multiple units to cover for a vacancy. But what they don't tell you is this - if you make a mistake, or something goes wrong with the economy in your town, or whatever, you can be eating negative cash-flow on all of those units - even when they are occupied. Then, the real problem sets in. How do you sell a loser property? If it were a single-family, you could sell it to an owner-occupant. Not the same with MF. Just my 2-cents worth here from a guy that has been eating negative cash-flow for about 5 years now and who knows another guy who just about went bankrupt with his MF purchase. Sure, there are good deals, and great properties. Just don't get caught up in the lie/trap that MF is "safer".
I tend to agree here. You need to have a solid understanding of underwriting, assemble the right team (PM, CRE attorney, brokers, bankers, etc), be good at capital raising (which will be no easy task since you haven't done this before), have a strong personal financial statement to qualify for the loan, and finally, have enough of your own capital invested (at least in the first few deals) to convince others you have skin in the game. Multifamily investing (apartment buildings with 60+ apartments) is not an ideal starting place for newbies, unless you are OK investing as a limited partner in the first few deals and try to understand the process that way.
Post: cell towers contact in Baltimore
- Investor
- Washington D.C.
- Posts 94
- Votes 18
Hey guys,
We are developing a 5 story 60 unit building in Baltimore, and want to explore placement of a cell tower on top of it. If anyone has any contacts in this space, please let me know.
Paul