All Forum Posts by: Snehann Kapnadak

Hey @Gerard J. and @Kevin Harrison sorry for the delayed response here! Everything's going well so far up until last week when the tenants randomly moved out. They were a couple living together and broke up apparently and decided to move out.

In terms of management, I was alerted of them moving out immediately the next morning. The PM has been very responsive and has already set in motion getting the house ready for the turnover, changing the locks, etc. and will follow up with a bid for those costs hopefully this week. I'm hoping it's not too expensive. They will also review the property to see if there are any damages, to which I'll receive their security deposit. And since the tenants failed to provide adequate notice of their departure, I'm hoping to get this month's rent from them as well.

Overall it's been a great experience. This turnover has been the first point of turbulence in what has otherwise been a smooth ride, but hopefully it will be resolved soon and a new tenant will come on board.

Hope this helps! Feel free to PM me or reply here if you have any further questions.

Hi All,

Hope everyone's the long weekend! I've been a big fan of @Michael Blank and have been consuming his podcasts, syndicated deal analyzer, and most recently, his new book. He speaks a lot about creating a Sample Deal Package, in which you underwrite a potential deal and use that to speak with prospective investors and lenders. The goal here is to get a lot of the big questions and inhibitions about investing with the Syndicator out of the way without any time crunch so that when there's a real deal on the table, the Syndicator would ideally be able to tap into these investors and get them on board relatively quickly. More info here: https://www.biggerpockets.com/renewsblog/2013/12/23/raising-money-to-invest-in-apartment-buildings/

My question is for all the experienced MFH syndicators & investors--does this sample deal actually work? Does it actually help show credibility to a prospective lender or investor? Or does it sound like you're being too sales-y or talking out of your @$$? As a new investor to MFH, I'm conscious of not coming across as genuine and I certainly don't want to waste anyone's time. I just finished my sample deal--I have a presentation & a written doc--both that outline my buying criteria, planned scope of work, projected financials, management team, and more. But now I'm wondering what to do with it and if it's worth using when speaking to potential investors, lenders, brokers, etc.

Hope this makes sense. I'd appreciate any honest thoughts and advice. Thanks in advance!

@Nimisha R. and @Marcia Dabrowski Sorry for the delay here! Working with Shawn and team was a good experience. They were very thorough and prompt with all the documents needed for the loan and for closing. The only thing that didn't go well was that for some reason they weren't able to send me all the documents to sign electronically and so I needed to physically print out every page, sign, and send back to them. So that was very cumbersome and annoying. But I'm sure they've updated their technology and are better at the closing process now.

Another thing I didn't like that much was that I had asked for the closing documents to be sent to me ahead of time prior to the notary arriving but they didn't. So I didn't get to review those documents until signing.

Other than that, his team has been great to work with. They just updated their software I think and so far it's been seamless.

@Account Closed Great to hear!

Great point @Tyler Kastelberg and I didn't even really consider that. Yes I'll be sure to throw in some sort of out-clause in the partnership contract. Thanks for the tip!

@Theo Hicks Oh okay, that makes sense. Thanks again!

Hey @Christopher Christian, thanks for a great post! I'm in a similar boat considering my MBA in real estate finance as well, so I'll def be following this thread. And after graduating from RBS for undergrad, I've definitely considered their MBA program as well. A few caveats from my response that you may want to take with a grain of salt though:

1. I'm a career-switcher going from the creative advertising industry into real estate finance
2. I'm younger than you and therefore have some more flexibility to the program I can go to around the country. 
3. I also make a lot less than 60-70k and live in NYC :(

One thing to consider is that Real Estate is largely network-based industry, probably more than any other industry. Like Michael Becker says, it's an "unfair business". So in order to do well, you'll need a solid network. Schools like NYU and Columbia have robust programs that have been around since forever and therefore attract the "big guys" to their on-campus recruiting sessions. Companies like Tishman, Blackstone, Tramell Crow, Marcus & Mill, and a lot more. The Rutgers MBA is brand spankin' new, like literally a year or 2 years old. The dean is an ex-Graaskamp Center guy (great program from U. Wisconsin) and is trying to build up the program at Rutgers. This is two-fold: on one hand he has to compete with the NYUs and Columbias who companies KNOW are solid programs so they won't even entertain coming to Rutgers to recruit, BUT ON THE OTHER HAND, the Rutgers real estate program will work their tails off to get you into some of these top firms, because they want to say "an RBS Real Estate grad now works at [insert top name prestigious firm here]" on their Admissions flyers. Does that make sense? Not to mention that being a small program will allow you to get specialized guidance from your professors and the dean. This also leads to the type of the networking events and speakers that the school can bring--Real Estate gods like Sam Zell would probably go to Columbia to speak vs. Rutgers, but again, but then again they may not. So you should definitely weigh those factors in.

If your goal is Brokerage, you don't really need an MBA. You basically just need to have a solid understanding of deal analysis and deal flow, hustle, and a network you can tap into bring in deals. If you could work as a realtor I'm sure you could hustle your way into Brokerage (but I've never done this so I may be incorrect). Getting the MBA may be more helpful if you want to get into development, REITs, and Private Equity. Brokerage is more "eat what you kill" but CorpFi, REITs, and PE are more "eat part of what the firm makes", if you want to think of it that way.

Also, like someone mentioned in their response, BP doesn't generally show love to MBAs and college degrees in general. A lot of the responses are valid--you don't NEED a college degree to succeed in REI (Look at the Poor Dad in "Rich Dad Poor Dad" for example), just need a lot of hustle and need to continue building your skills. That said, many MBA programs teach students the skills they'd need to work in commercial real estate such as: Argus training (at a very discounted rate for students), Salesforce, building models and underwriting deals, getting LEED Certified, etc. and they often have student discounts for doing so. For example, Georgetown has a Real Estate clinic that makes you underwrite live deals for Invesco, a large investment company. So you'd imagine how great it looks to tell an employer "yeah I don't have too much experience in real estate, but I underwrote and analyzed 50 deals as part of the real estate club at school". Schools also offer things like Real Estate funds and certification courses. You may want to consider dipping your toes into a Diploma or Certificate program at one of these schools to get a feel of what an MBA course could look like. I just started the Cert. program at NYU and it's going well so far.

If you're interested in a real debate about Real Estate MBAs (no offense BP ;)), check out Wall Street Oasis and specifically some of these threads:

• https://www.wallstreetoasis.com/forums/mba-programs-for-real-estate
• https://www.wallstreetoasis.com/forums/where-was-your-first-job-post-mba-where-are-you-now
• https://www.wallstreetoasis.com/forums/career-pivot-via-masters-in-real-estate
• https://www.wallstreetoasis.com/forums/msre-vs-mba-decision-looking-for-opinions-based-on-my-situationinterests

My final point is that like you, I want to use an MBA to help build out my own portfolio. I want to work in commercial real estate and take what I learn from an institutional perspective and apply it to my personal investing. I want to be involved in MFH Syndications, so I look at the MBA as a seal of credibility to prospective investors. All other things equal, would you rather invest your money with an MBA from a top-25 school who's also worked for a CRE firm for a few years OR someone with just a Bachelors who's underwritten a few deals off LoopNet? THAT'S the question I'd like to pitch to my potential investors.

Ahhh, sorry I think I rambled a bit but like I said, I'm in a similar boat and looking to do my MBA in the next couple of years. Hope this is helpful and feel free to PM me if you have any questions. Hope to stay in touch down the line. Maybe we can even do a deal together with all the (potential) fancy MBA knowledge we have haha. Good luck!

@Theo Hicks Ah okay got it, thank you. In addition to a having a person who meets this financial requirement I'm hoping that they'd also factor in the expertise of the property management team and help provide me with favorable loan terms.

Fair point @George Hoover thanks for the feedback!

@Ellie Perlman Will do, thank you!

@Theo Hicks thanks for the clarity and outline. Super helpful. I'm leaning towards #1 along with #4, with reduced management fee. Do you think if they sign on the loan with me that I'd get more favorable lending terms? That's what I'm aiming for.

And you're right, I guess I meant a 55/45 LP/GP split, where the PM Company would get say, 60% - 70% of the GP portion and I'll keep the 40 - 30%.

hey @Don S. sorry for the delayed response but the inspection went well! I used Bulldog as well. My property is in 64050 so I can't speak to 52 but hope you find someone here who can!