All Forum Posts by: Michael Tempel

I recently have been looking at crowd funding and other sources for real estate and signed up with Reality Shares as an investor, but really want to use them for a future acquisition as a borrower.

Does anyone have any experience with them?  

We would want to fund a 1-5 million property, so my hope was we could have 20% covered and possibly have assistance in obtaining a sponsorship position.

We are planning on putting RUBS at many of our communities in 2017.   We can set it up to do a partial payment based on the percentage and formula of the overall bill.  Our goal outside of saving money is focused on conservation.   Water will go up sooner than later, so we want to be pro-active vs. reactive. 

Does this same formula work with multi family in the 1-5 million range or are you typically just raising the 20% down and financing the remainder?  

Originally posted by @Eli Sunderland:

Hi @Michael Tempel!  Thanks for the input!  wow, 51% increase?  Was that immediately after buying it?  Can i ask for numbers on that?  how much is rent for different sizes of apartments like 3/2 or 2/1s?  Also, why do you think you were able to increase rent like that?  did you buy it and rehab it a lot, or was it just rented below market when you bought it?  sorry for throwing all of those questions at you, but that's a huge increase in rent, and i'm curious!

Also, if I can ask one more question; I see you're a property manager in the area. What do you think a nice looking 4/2 SFH with anywhere from 1400-1800 sq ft could rent for in northeast near central ave? I know there a lot more variables that go into that, but I'm just hoping for a decent guesstimate.

Thanks for everything!  

I love NE, but would have to agree with Tim.  

Tim, good to see you on here!

We are the process of refinancing a 12 unit building bought in 2013.   Raised rents 51% and the value of course is up there now because of this.    I don't think NE is at the top of the market, but it is hard to get the gains you could 3 years ago.    

We have done many apartment communities renovations and I have found cost will vary based on what is needed, but you can always bet on painting as a constant item. Usually floors are a close second...then fixtures and possibly appliances/kitchens if they are old. Normally we get lots of bids on everything and try to get the best cost per unit by trying to do as large of a property we can afford or find. Cookie cutter units vs. lots of unit variation is preferred to make renovation work easy to multiply and duplicate. If you can mix this with rents that are under market it isn't hard to bring rents up close to 30%. Your area and comps are very important when making sure rents are under market first. I suggest putting a spreadsheet together and start to plug and play with options calculating the cost per unit. Our renovations have varied from 5-17k a unit. It is very easy to push renovation cost to 20k plus, But I have found you don't get much more rent for the extra improvements past 10k. Every situation is different so this is just what I have personally experienced, but have always gotten great ROI doing this.

Daniel,

I would be extremely interested in this.  We are in need of someone to help in many areas and part time is ideal.  Let me know if you're still looking.

Mike

Nick,

If this is still available I am very interested.  Please send info to: [email protected]

Mike

Todd,

In the MN market I have seen a lot of lower cap rates due to the huge growth in multi family. I office right in the area you are looking and think you can get higher cap rates in that area since it falls into a B- location vs. the low 1-3 cap rates you are seeing in class A in A locations. I think 8% is very likely, I can explain in more detail if you want to reach out. With class C properties in Brooklyn Center and Brooklyn Park market in MN we have usually averaged an increase of 10-15% ROI after doing cosmetic renovation work and simply raising rents.

I have a few really good ones depending on your needs.   Feel free to contact me, e-mail is best.