All Forum Posts by: Michael Le

If they're a passive investor then it is considered a security and you will have to to treat it as such. The number of investors does not matter.

Congratulations. Keep us updated on the progress.

Make sure the NDA only covers this specific property. Too many scammers have broad NDAs that state anything they send you you will have to pay them a fee and then they proceed to send you every deal (on and off-market) to your inbox.

It should be detailed out in the PPM but generally acquisition fee is based on purchase price, asset and property management fees are based on total collected income (monthly), and disposition fee is based on sale price or, if a refinance, the new loan amount. 

Thanks, Vijaianand

I wouldn't say it's needed but it's nice to have and if it doesn't cost much then throw something up, if anything just for your marketing. 

I have a 50-unit townhome in a nice area. It had no amenities when I bought it other than the units themselves do have washer & dryer hookups. But there was a small area near one of our buildings and we put up a nice little picnic area with a pergola, picnic bench, and grill. We had another small area in the back we put a fence around and made into a dog park. 

Happening all over I think. Was just reading this article when your post came through.

https://www.bisnow.com/dallas-ft-worth/news/commercial-real-estate/before-you-break-that-lease-over-covid-19-negotiate-first-brokers-say-103597?utm_source=outbound_pub_15&utm_campaign=outbound_issue_37294&utm_content=outbound_link_1&utm_medium=email

I'm not HVAC specialist but from my understanding the chiller systems have shared water pipes but not necessarily shared duct work. For multifamily apartments each unit is likely it's own zone and thus has it's own ductwork. In this case it shouldn't be able to spread between apartment units.

Sheesh, 20 year term at 5.8% interest? No wonder you're not cash flowing. lol

I'm not sure your financial situation and what lender you're working with but Fannie/Freddie agency loans are around 3.5% right now on 30-year amortization. 

Is it going to be 6% cap forever? Are you not doing any value add to the property that would push that up? If it's a stabilized yield play then you should be getting much better interest rates than you're showing. That 5.8% rate would be a bridge rate (a bad one even for this current market), which would imply you should be able to make money by pushing rents, etc.