All Forum Posts by: Hament Raju Mahajan

I know over 5 Deal sponsors (active partners) who syndicate Multifamily apartment deals (they raise money from passive investors and manage the project) .

I see that in the last couple of years most of them talk about picking at least 2 deals  (value 10 + Million) and most of them have achieved (or have a target of ) getting over 1000 doors in the next couple of years.

I am based in the San Francisco Bay Area. Yes I see that real estate investment sentiment is at its top ...there are many passive investors who would like to put money to these projects based on projections  and finding money is the easy part now.

I am  how ever  not  convinced on the part that a sponsor group which probably has not seen a contraction (downturn) in market and they are buying too much too soon . Like to get perspective on how they are going to handle a market downturn  when you have so much of product in a given market  of similar type.

How would these 1000+ apartment holders(active partners)  handle these projects  when the prices and rents  go down , interest rates go up and projects need new capital infusion to survive. If we get into that market cycle how are the sponsors going to react who generally do not bring any (or very little ) money from their pocket 

I have a house in san jose downtown zoned R18 (Single family house with a ADU(Accessory Dwelling Unit) - In law unit. (with a single gas and electric meter)

I am looking for some expert who could help me rezone this and  convert this to condos  or multiple units with separate meters.

Please recommend

@Minna Nah

I am unsing a PSP (Profit sharing plan) a trust which is attached to my existing LLC. The PSP trust uses the same EIN as the existing LLC.

I have been filing the 5500-EZ for this

Thank you all for such a comprehensive information on a topic which is not very known :)

Yes I am using a trust account attached to my LLC for the SD IRA - QRP. End of the year we have to file a IRS - DOT simple form 5500-EZ as the parent LLC Is 100% owned by us (husband and wife).

This form is also very easy to fill up.

Good thing that the CA state does not ask for any formalities for this .

I have an existing Note (Note 1) secured by a deed of trust in California on a SFR (property 1).

The borrower has agreed to bring in additional property  (Property 2)as a collateral  after Note 1 is completed  as a cross collateral.

I will be recording a deed of trust as a cross collateral on property 2. 

How could I amend the Note 1 so that It becomes a cross collateral note secured by property 1 and property 2 ?  

Joel

In you post you mentioned about senior housing. What kind of cap rates one could expect for those. Here is San Francisco Bay area i saw most of the assisted living (6 bed board and care facilities) business were running with a loss .  

Would be good to know how these senior living facilities do in other locations and how the larger facilities fare.

From flipping standpoint , this seems like a low margin deal . It may work for the  long term hold scenario.

"For example, let's say the house is 70, rehab 17, ARV 100. Rent for 1150."

That is a good question.

Another way as a senior lender could look at this is : He is getting a junior lender to guarantee the senior loan.  That helps the senior lender keep a clean track record if the loan goes in default. 

I do California junior lien position business purpose loans secured by CA single homes .

I am looking for an  an Inter creditor agreement between the the 1st Lien  lender and junior lender ,  whereby 1st Lien lender allows Junior Lender  to foreclose and not foreclose Junior Lender  out while Junior Lender is foreclosing.

Where can i get a simple agreement stating these terms and other related terms for a new purchase money loan or where i go as a junior lender where there is an existing loan in place.

I am looking for attorney reference who could help us put the paperwork for note hypothication.

I would like to pledge the secured performing note on which I am the beneficiary/ lender to borrow funds against it.

I have been told that collateral assignment deed of trust is one way to do it.

Looking for ways to structure this

Thanks

Hament