All Forum Posts by: Patrick Milhaupt

Marc,

Looking between Panama City and Destin.  Reason being that it is reasonable driving distance from Tallahasee and Atlanta for a weekend trip. Santa Rosa at a good buy in is perfect.  $400,000 is the sweet spot.

I have vetted out every single marketing software suite out there and have a final three I really like. I also have my own website which the marketing distribution software will read off of.  The pricing will be adjusted in real time based on the comps that I choose and the market availability at that moment.  I integrated the same dynamic pricing software into my apartment portfolios in prior roles. Its actually quite easy but property management companies will make it seem complicated and charge 18%. I have other software integrations for customer service and maintenance, which I have quoted an average of 5%-6%. I will handle all other property management and the accounting will be autonomous and digital.

Say I am looking at a $400,000 place. Do you think a lender would do 10% LTV I/O?

I just need to get the first two rolling, but ideally if I found a partner who understood the value it would accelerate clip rate. I have a firm that has a large portfolio of managed vacation rentals across the globe that offers one to three year leases with a proven 12 months of cash flow.

Greetings to all,

Please help!

I recently began my firm's organization with the goal to acquire several vacation rental properties in Florida. 

My objective is to build a portfolio of 5-10 exceptionally managed rental homes and stabilize the portfolio within 18 months of initial acquisition. 

My exit strategy is to either (1) Sell the portfolio in years 4 to 5, (2) Cash Out investors by refinancing, or (preferably) (3) Hold and leverage the stabilized cash-flow from the portfolio to raise capital to commence the second portfolio in another region.  

I am seeking advice to finance and acquire the first several properties.  I have a tremendous and well executable business plan - I need help getting started.

Specifically:

1.  Debt Vehicle - I/O, Conventional, Home Equity, 100% Private Equity? My assumption right now is the interest only, with right terms, would be best for the first several deals.

2.  Equity Partners - I have a meaningful amount of equity to contribute as GP and am seeking an LP to partner with me on the balance. I do not need cash flow immediately, but need help with covering the balance of equity down to acquire and execute my improvement strategy.  Therefore, I am concerned solely with a smooth scale to portfolio stabilization and the return of capital to investors. I am willing to sacrifice income initially in exchange for operational success and deal security.

Would anyone be able to help me out with strategizing financing?

My models and business plan are airtight. I have been in residential (SFR,MF,SH) real estate for 10 years. I started out in the trenches leasing apartments and eventually (on-site) managing large-scale commercial multifamily renovations in L.A. I made a logical progression up through asset management and finally to acquisitions for a private equity firm.

I realized I was delivering the true value to my firms' investors and was not justified in my salary. It became clear I must acquire equity in deals, use my management skills to destroy competition, and then reinvest my sole earnings early on in lieu of ultimate freedom and success. 

I am looking for some mentorship and someone to help me get my first deal or two under my belt. 

I really appreciate any and all advice. 

Best regards,

Patrick Milhaupt

Would like to be included. Thanks!

I have an exceptional proper 4-flat apartment building in one of the most undervalued Chicago neighborhoods which I sourced, negotiated and contracted for 20% below market. The property is held and managed in a family trust and has been well maintained but with tenants whose longstanding MTM rents never increased. Further, the units are listed as 1x1 yet are 1,200 sf each and easily convertible to 3x1. The conversion cost of $5k-$8k will triple the rents with cosmetic beautification and sound marketing. Originally an FHA loan in place, the appraiser refuses to acknowledge the comparable floorplans are 2x1 or 3x1, and therefore does not hit 1.25 DCR. Rather than fighting that battle, I would rather split the 20% down for a conventional loan with someone who understands how value is identified and created. $70k (or 10% of cost) is needed, with an expected conversion-flip to return $150k following a sale in peak summer season at the upgraded rents. Very simple: no pref, just a 50/50 split, true partnership and shared risk. A homerun deal I have scoured the market 9 months to find.