All Forum Posts by: Rob Beardsley

Hi, you can download my underwriting model capable of evaluating any type/size of multifamily investment opportunity, including various partnership structures. You can sign up for our Lone Star Capital newsletter (lonestarcapgroup.com/newsletter) and get the underwriting package emailed to you with video walkthroughs and examples or you can PM and I'll share directly. 

@Spencer Gray To your point about treasuries moving lower, it seems that pricing expectations haven't adjusted to this and thus are creating opportunities to buy deals with more favorable cap rate to cost of debt spreads. We'll see if the market adjusts pricing expectations - it seems that you're seeing this. 

We are putting up $100k to $200k hard money on almost all of our deals. 

Hi Mindy, the numbers high level look pretty good ~18% project level cash on cash return after stabilization. Trust/confidence in the sponsor of the project is the most important part of the deal. 

@Jake S. Since the raise is pretty small, $100k is a significant amount of the deal and therefore it wouldn't be totally unreasonable to request an upfront deposit. I agree, the 75/25 split should include an 8% preferred return. 

Hi Kadeem,

I think it would be beneficial to ask why the owner is not interested in selling. Additionally, you should follow up with them in an email giving your contact information so that if they change their mind, they can get back to you. It is really important to follow up to increase your chances, but it's a numbers game. 

Hi Anne,

There is no asset is so good that you cannot overpay for it. Your agent is incentivized for you to overpay and get the deal done quickly so I would take their advice with a grain of salt. However, if this home has an asking price that is actually priced fairly, it might make sense to take the risk of paying the actual asking price. Although, it seems as though you have already decided it is not priced fairly. Good luck

Hi Weina, 

It is probably worth it to do cost segregation on properties over $5MM. As far as I know, it costs about $15,000 to perform a cost segregation so if it makes sense in your underwriting, then I'd say pursue it. 

I would say it is worth it to get your license. Aside from the reasons you outlined above, there will undoubtedly be unexpected situations in which having a real estate license could benefit you. 

You should definitely look into multifamily investing. It can be intimidating but there are lots of advantages and can provide much more cash flow, which is what you are looking for. Additionally, you should be using OPM to fund most, if not all of your investments. 

Hi Natalie,

Welcome to BP! If you're interested in more educational resources about REI, let me know and I can share my favorites with you. Good luck

Hi Jeff,

The deposits from current tenants should be credited to you at closing.