The Old Capital Podcast is aimed at Real Estate Investors - both new and experienced.
Hosts Michael Becker and Paul Peebles deliver no-hype education and expert perspectives.
You will gain valuable insights from interviews with actual real life investors who are active in acquiring and operating apartment complexes. You will discover how they are identifying, financing and operating apartment complexes, as well as helpful advice on how to get started and avoid common mistakes.
After you have spent over 90+ days in the acquisition process…its time for you to actually own and operated your building. Michael discusses a PRE- and POST- apartment takeover strategy. If you self-manage or have a third party management team; a transition plan is critical for your immediate success.
Emily Cortright and Adam Roberts were corporate folks. They went to the right schools, (Ohio State and Penn State) lived near the ocean in southern California, and both worked for the right company (General Electric- Aviation); everything was great-UNTIL…GE sold their division and they were going to get downsized or transferred. They began to look for additional income options to support their lifestyle. They attended an educational class on real estate investing. After spending a weekend in the class… it was an epiphany moment- a change of mindset. They wanted to become investors. In the podcast, Emily and Adam take us on the journey from a corporate wage employee to an apartment investor. They show us how they educated themselves on apartment investing and teamed up with an experienced investor to buy two large buildings in Texas.
To contact Adam & Emily: emilycortright@kw.com or adam@aehomebuyers.com
Visit their website at: AEMULTIFAMILY.COM
Are you interested in learning more about how Multifamily Syndications work? Please visit www.spiadvisory.com to learn more about Michael Becker’s Real Estate Syndication business with SPI Advisory LLC.
Michael discusses and defines the term: KEY PRINCIPAL and how it applies to commercial real estate lending. The lender makes the loan to the Borrower. The Borrower is not typically an individual; but typically a limited partnership. Generally, where the Borrower is a limited partnership, the general partners are the managers of the Partnership. Thus, individuals general partners are potential Key Principals. For any general partner of the Borrower which is an entity, the Lender must identify as Key Principals those individuals who control that general partner. Key Principals usually have control of the Borrower and a fiduciary responsibility to the limited partners. However, where either a managing general partner or group managing general partners have been authorized in the Borrower's Limited Partnership Agreement to manage the partnership without participation from the other partners, then, the Lender must identify as Key Principals only those individuals managing general partners, or if a managing general partner is an entity, those individuals who control that managing entity individual general partners and the principals of non-managing entity general partners.
For various reasons, not all apartments will qualify for a Fannie Mae or Freddie Mac loan today.
An example could be that current net operating income (NOI) versus sales price does not support a higher leveraged loan amount. Today, borrowers are seeking the right loan structure that can “bridge” them from point A to point B. Bridge loans may be the right financing strategy for value-add investors with a clear plan to increase future property income. Most bank bridge loans will only do low leveraged (60-65%), full recourse, short term loans. Bridge loans are NOT HARD MONEY LOANS. Underwriter John Q. Banker explains how to qualify for a HIGHER LEVERAGED NON RECOURSE REAL ESTATE BANK BRIDGE LOAN when a permanent lender does not offer an immediate solution based on the asset’s current financials, current occupancy and condition. You want to listen to this conversation. John and James go into detail on what is important in bridge lending.
Are you interested in learning more about how Multifamily Syndications work? Please visit www.spiadvisory.com to learn more about Michael Becker’s Real Estate Syndication business with SPI Advisory LLC.
Michael discusses some recent economic information that Greg Willett from RealPage has shared with investors. Possible slowdown coming in 2020-2021 and the impact it will have on apartment leasing and ownership.
Today, Allan and Laurel Beazer passively own over 2000 apartment units. A few years ago, they got mad after their CPA told them they may have to work many more years to have a decent retirement. They found a better way. They joined an education & mentoring group that focused on multifamily investing. Listen to their journey on how they passively invested into various real estate partnerships and eventually found their own opportunity with an 11 unit building. They discuss how they found, acquired and operate a small apartment building. The Beazer’s got into real estate investing as a SOLUTION to retire sooner; does that make sense for you?
Contact info for Allan & Laurel: beazworkzinvesting@gmail.com
Are you interested in learning more about how Multifamily Syndications work? Please visit www.spiadvisory.com to learn more about Michael Becker’s Real Estate Syndication business with SPI Advisory LLC.
Michael discusses the status of the capital markets that he is seeing as a deal sponsor. Today, to be rewarded with a lower interest rate, Agency lenders want to see energy or water savings by apartment owners and/or tenants. This year, Fannie Mae and Freddie Mac made a change that calls for borrowers using their green-lending programs to commit to saving 30% on their energy and water consumption, with half of that reduction having to be in energy use.
