All Forum Posts by: Paul Peebles

Paul Peebles has started 34 posts and replied 41 times.

Lane Beene and Jason Hull are heroes. Lane is a current US AIR FORCE- F16 pilot and owns apartments. Jason is a former NAVY SEAL and now finances apartments. Business is like combat and you need the right team members you can trust. Both owe their outstanding military success to being able to count on good teammates.

Things you will learn:

Jason:
Every day is a game day. Going through BUDS, Jason never thought he would ring the bell to quit. 16 people in a SEAL TEAM and everyone has a role and a responsibility. As a team leader…”calm is very contagious.” You will never have the perfect plan…but you must make a decision and work with your team.

Lane:
Every mission is important and all teammates play critical roles. No tolerance for mistakes. Surround yourself with teammates with high creditability and capability. Rely upon the whole team, not just one individual. America is still the land of opportunity, don’t forget that we live in the best country. To grow, you must rely on other people.

To hear more on this you must listen to the Old Capital Podcast: Working together we will accomplish more!

To receive our FREE 15 page WHITE PAPER REPORT on the 2017 FUNDAMENTALS OF MULTIFAMILY FINANCING 101 and to learn more about upcoming events at Old Capital Speaker Series please visit us at OldCapitalPodcast.com

Thanks for listening

http://www.oldcapitalpodcast.com/

0 Votes

The Old Dawg chats with The Big Dog (Michael Becker)

Bill Manassero with the Old Dawg REI Network Podcast explores why Michael Becker has a track record unlike few others. In less than 4 years, Mike has acquired over 4,000 units. That's right! 4,000 units in less than 4 years! In this very special podcast, Mike will be sharing some of his insider secrets on how he got there so fast. In his interview he will be discussing tips for working with brokers (your number one source of great deals), leveraging and how to find the best off-market deals.

• How to recruit people into your deal to help you qualify for the good loans
• How to build and maintain a strong deal funnel
• How Mike went from buying single family foreclosures, rehabbing and renting them out to buying multimillion dollar apartment communities
• How to get brokers to listen to you even when you have no prior experience
• How to get brokers to call you first when they have great off-market deals
• The importance of knowing how to properly underwrite potential properties
• Creating a powerful “elevator pitch” to share with everyone you meet to attract great deals and high net worth investors

Listen to the olddawgsreinetwork.com

To hear more on this you must listen to the Old Capital Podcast: Working With Brokers and Finding the Best Off-Market Deals

Thanks for listening

http://www.oldcapitalpodcast.com/

0 Votes

In 2010, Aaron joined an apartment mentor program & learned about apartment syndication. Now he owns hundreds of units with his equity partners.

Currently owns 3 apartment buildings:
200 unit Fair Meadows
150 unit Rock Island
340 unit La Jolla Terrace

Sold 2 apartment buildings last year:
90 unit Pioneer Villas- Value Added
116 unit Casa Bella- Value Added

His father emigrated from Russia and didn’t speak english. Father created the largest mattress discounters company in county. Aaron worked several years for his father and learned determination, tenacity and to follow one course to success.

Aaron faced many challenges on his first apartment transaction. His initial management company was not focused and had to be replaced immediately. Putting a transaction together is like putting a puzzle together.

Aaron discussed the genesis on his latest acquisition- La Jolla Terrace Apartments. Aaron had built a personal relationship with the listing agent for over the last 5 years. The property received over 15 LOI (letter of intent) offers from other potential buyers. He made it to the best and final. His offer was not the highest. The seller requested a personal conference call with the buyer to discuss his purchase game plan. He felt very positive after the call. He wanted to make sure the seller understood his buying passion. Aaron had his financing in place and let his seller know he was prepared. Buyer moved forward with Aaron. Aaron is persistent and has positive expectations of success. Aaron raised $7 million with 70 investors for La Jolla.

Aaron recommends the book The E-Myth: Working ON your business…instead of IN your business. Aaron started with 7 investors and now has a database of over 100+ investors. He learned that you must be transparent with your investors to succeed.

To hear more on this you must listen to the Old Capital Podcast: Aaron Katz

Thanks for listening

http://www.oldcapitalpodcast.com/

2 Votes

The Old Capital team talk about interest rates rising at the end of 2016 and its direct impact on loan proceeds, future of apartment investing throughout Texas and the nation and challenges with underwriting on specific transactions.

Old Capital closed over $420 million in loans in 2016.
DFW will have over 25,000 new unit apartment deliveries for 2017
Still concerns in Houston and west Texas.
Fannie Mae Green Program can reduce your interest rate up to 33 basis points
Challenges with buying apartments in smaller markets with military concentration
Freddie Mac Small Balance loan is now available up to a $6 million loan amount
Cross Collateralization can be a solution in bank financing
Rebuild Ability issues. Can property be rebuilt if more than 50% is destroyed in fire?
Financing Challenges with environmental issues.
Rent growth. Class A rent growth is slowing. Class B & C is much better.
Houston is a preview market with Fannie Mae and impact on financing apartments
Focus on location and quality of the asset when buying.
Old Capital brings “certainty of execution in lending and closing”.

Old Capital Speaker Series presents Dr. Mark Dotzour, Former Chief Economist from Texas A & M Real Estate Center on April 26- Grapevine Convention Center. RSVP at [email protected]

To hear more on this you must listen to the Old Capital Podcast: Quarterly Lenders Roundtable for First Quarter 2017

Thanks for listening

http://www.oldcapitalpodcast.com/

1 Vote

Thank you @Michael S.

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A professional property management company can make or break your profitability and overall success to your apartment investment. Find a management group you can trust. A property management company should treat their clients money as their own.

Craig Lashley & Todd Parks are with SIMC Property Management. SIMC is a third party property management company that manages over 7500 apartment units. SIMC focuses on properties with a minimum size of 200+ unit apartments. SIMC likes to find employees outside of the apartment industry to join their team.

Property Management companies should have a few different divisions.
Example: 1) accounting, 2) human resources, 3) construction & rehab

ACCOUNTING- is responsible for receiving rental income, paying the expenses and then delivering monthly financial statements to the ownership group. They are also responsible for lender communication for construction draws on rehab and the capital replacement reserves.

HUMAN RESOURCES- HR overseas the onsite property manager, assistant manager, leasing agent, maintenance manager, assistant manager & porter.

CONSTRUCTION- Your property management company needs to improve and update your property. They execute your vision. Having an internal construction group controlled by the property management company can be cheaper and more consistent than hiring an outside crew. A large property management company can buy in bulk and import fixtures, flooring and low flow toilets directly from overseas, thus saving huge costs.

TIPS: When you put a property under contract to buy, make sure that seller does not take their eye off the ball before the property changes hands. If occupancy or NOI fall, your lender may have to reduce your loan dollars. Maximize your rental revenue with LRO. Hotels and airlines use it to get the highest price in the market. Find out if you can use rental optimization for your building.
Huge amenity push in apartments to capture new tenants. Craig likes a ’24 hour-package room’ for boxes delivered by Amazon or UPS. Valet Trash is a great low cost amenity for tenants that will help your bottom line. Todd uses Facebook Messenger to communicate with potential tenants.
GOOD ADVICE: As an owner, don’t get in the middle between the management company and the on-site employee…or you could get fired. Let them do what they do (operate the building)…and you do what you do. (find the next building to purchase and raise the equity)

To hear more on this you must listen to the Old Capital Podcast: You need a Property Management Company that you can TRUST

Thanks for listening

http://www.oldcapitalpodcast.com/

0 Votes

@Brandon Turner where do you go to change out the logo to our logo instead of temp logo?

Thanks!

0 Votes

Bob DeLong was concerned about his retirement and was looking for a solution. He found that investing in apartments could create passive income. He now invests in apartments in central Texas. He is a managing member and a passive investor in several hundred apartment units.

Bob believes that the Austin ‘Class C' apartment market is incredible or insane. Demand outstrips supply…rents are going up and occupancy is at 98%. Bob has properties in Austin and San Antonio, Texas. Prior to getting into apartments, Bob was in the engineering and construction business for over 35 years. He is a hands-on type of guy. His initial investment strategy was IRA's and 401k's until he realized he needed something more. His retirement lifestyle was in jeopardy. He was concerned that drawing out his money from a 401k, and not putting money back in, was frightening. He felt that he needed passive income to retire if he was going to live another 20-30 years.
Bob found an apartment mentoring and education group. Bob was initially skeptical and only made some small passive investments in other peoples properties. Over a period of time and four apartment investments, Bob began to believe that apartment investing was a viable solution for his retirement with passive income. Bob believes that having the mentoring and education group, that he joined, was the ‘game changer’. He could not have done it without them because it would have taken him years of trial and error to figure it out. After being a passive investor for several years, Bob decided to become a managing member and put his own transactions together. In the podcast, Bob describes how he operates and manages his properties in central Texas.

To hear more on this you must listen to the Old Capital Podcast: If you "can't break it"... you must invest

Bob’s contact info: [email protected]

Thanks for listening

http://www.oldcapitalpodcast.com/

0 Votes

John Griggs, with Presidium Group in Dallas, owns over 10,000 apartment units. He co-founded the company in 2002.

John and his business partner Cross Moceri, were unhappy lawyers in California when they got bit by the real estate bug. They first started buying, rehabbing, and selling single family homes and four-plex’s in California. They wanted to expand, and after looking into several markets throughout the country, John and Cross decided on investing in Dallas. 1000 units eventually became 5000 units in just a few years. Presidium stayed on the sidelines, during the recession.
At first, Presidium started buying value added ‘C class’, now they are building large new apartments in good areas and still buying value added ‘B class.’
Tips: In a declining market, you don’t want to be the last guy to change your rent structure. You want to meet the market. Don’t keep your head in the sand; keep the building filled!

Keep your property clean with good maintenance during a down turn.
Buy and renovating apartments still works in Texas. Make sure the neighborhood can support the rent bumps after the rehab. Do your homework.
Getting started in new apartment development was a very steep learning curve. Mitigate your risk with having the best team (bankers, general contractor, architects) on your side.
When buying a building, make sure that you raise more equity than you need too, because you can always give it back to the investors if you don’t need it. Don’t get caught short with capital at the beginning.

Contact John at [email protected]

To hear more on this you must listen to the Old Capital Podcast: Learn to grow your portfolio to 10,000 units

Listen to the Old Capital Podcast Now!

To receive our FREE 15 page report on the FUNDAMENTALS OF MULTIFAMILY FINANCING 101 and to learn more about upcoming events at Old Capital Speaker Series please go to OldCapitalPodcast.com and sign up.

Thanks for listening

http://www.oldcapitalpodcast.com/

0 Votes

In less than 10 months, Venkat and Ramana, purchased 3 apartment buildings in 3 different states with over 500 units, for $27 million. Now, they are hooked on buying apartments.

Venkat is the IT Services business. Initially, he started buying single family homes. From 2007-2014, Venkat had purchased over 20 homes. He maxed out his ability to get long term Fannie Mae home loans and wanted to learn how to scale his real estate business. He found an apartment mentor that specifically taught multifamily investing. He then found a partner with Ramana in that same mentoring group. Ramana is the IT Services business for 13 years. He had done some investing in real estate, but on a limited basis.
First transaction was in Norman, Oklahoma. Second transaction was in Phoenix, Arizona.
Third transaction was in Mesquite, Texas.
Phoenix seller forced buyers (Venkat & Ramana) to use their local mortgage company. After 3 weeks, their mortgage company could not deliver. Buyers brought Old Capital into the transaction. Old Capital was able to close within 43 days and with max 80% leverage and a non recourse loan.
Next deal, Tradewinds Apartments was a $15 million acquisition in Mesquite, Texas. James explains the difference between CapX and Re-Incurring expenses and why it is important when you need to qualify for the loan. Venkat relied upon his property management company to research the submarket to make sure they could hit higher rents.
What we learned: More transactions that you do, the easier it becomes to raise capital from limited partners. You can make 50 calls to new investors and explain it 50 times; or you can invite 50 friends and investors and do a recorded webinar and explain it one time with slides by explaining the benefits of investing in your deal. Being part of an apartment mentoring group can help you bring your apartment investing business to the next level.

To hear more on this you must listen to the Old Capital Podcast: These rookies bought $27 million in apartments and still have their full time IT jobs

Connect: Venkat at [email protected] Ramana at [email protected]

Listen to the Old Capital Podcast Now!

Thanks for listening

http://www.oldcapitalpodcast.com/

1 Vote

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