All Forum Posts by: Michael Gilman

It is certainly tough to conservatively underwrite and win a listed deal when you have half a dozen others pushing their underwriting to the max and buying with "as is" cap rates that are at or below cost of financing. We have been focusing on off-market assets in hot markets to avoid a bidding war as well as listed deals in tertiary markets in order to stay true to conservative underwriting. 

Many secondary and tertiary markets support conservative underwriting even on listed deals. For example,  we recent closed on a multifamily portfolio in a hot tertiary market modeling 2.5% rent growth and conservative inputs throughout and well north of 20%IRRs to investors.

Are tenants on a lease or month to month?  You can always non-renew and also seek to evict for violations of other lease terms if applicable (i.e. damage to property, nuisance). 

If they signed the CDC declaration some courts will allow landlords to present evidence that tenant has commited perjury (i.e. they have a job, or have sources of income which they are not using to contribute to payments such as enhanced unemployment and stimulus checks)

Lastly, most effective and quickest is having tenant voluntary vacate with cash for keys.  IN fact most of the time landlords are better going this route than bothering with the eviction process all together due to current back logs and climate. 

Remove contingencies without putting yourself in a bad spot  by having the property prequalified with your lender and waiving inspection by going with your GC. 

Our portfolios in smaller towns (Northern New England) have been going gang busters with 99% rent collection and  record demand for vacancies (with price increases), and no inventory in sight.  We continue to double down in these markets with off-market and brokered opportunities where we can get significant day 1 cash flow for investors, value-add and historic migration shifts.  

Hourly rates vary and some attorneys will do a flat fee for a for a syndication within certain parameters for $10k and up.  I am real estate and securities attorney as well as sponsor and happy to provide a free consult if you wan't to dm me. 

Spot on.  Wholesalers being touted as some kind of magical solution.  

Shore up the financing and go after the non retail deals. Also consider a line of credit to help get you the equity to close. A commercial lender typically wont care where the down payment comes from.

Nice one. What building class?

Fundrise and REITS are chasing the same overheated market. You are generally going to get lower returns with REITS due to overhead, but traditionally more stable and less risk do to size and scale.

I have access to some databases and helpful resources I can share with you. Shoot me a message if of interest. I am working on an ebook on the subject. 

Tough to get good cash flow with turnkey. Multifamily in secondary and tertiary markets is the way to go for cash flow. Do you have any specific markets in mind? Are you looking to be an active or a passive investor.