Episode 82 - They are all still friends after buying a 142 unit apartment building together

Friends for over 17 years; Boris, Oshi, Leonid & Albert currently live in Northern California and now own 200 apartment units in Dallas, Texas. How do hardware designers that live over 1700 miles away, find, own and operate apartment buildings? Boris chats with James on how they found their first 55-unit apartment property and how they managed a $300,000 rehab project from a long distance. After the rehab, the partners were able to increase rents by over 30% a unit. They increased NOI dramatically, thus increasing value. They did not syndicate this deal. They only used their own personal funds. The next purchase was a 142 unit- Class C property in Arlington, Texas. They purchased a slight value added property. They had to assume the current Fannie loan and apply for a ā€œsecond lienā€ supplemental to get total leverage up to 75%. Wow! That was a tough one. They had only owned their first property for a little over a yearā€¦and now they were going to double the size of their portfolio. Fannie had to get comfortable with the new sponsor and their management company. Fannie knew the seller (they liked his long term ownership experience) and now we had to convince Fannie to substitute them with a new ā€œlimited experienceā€ buying group. Yikes!! We got it done.Ā  The guys explain on how they are educating potential multifamily investors in the Bay area. They run a successful MEETUP GROUP in Las Gatos, California. They believe MEETUPS are a great ways of bringing investors together. Advice to new apartment buyersā€¦make sure you have the correct rehab amount needed upfront when applying for a loanā€¦and never think you can take it out of cash flow. Have more money; than less. Itā€™s always easier to return investorsā€™ money- than having a capital call with your investors.Ā  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 Are you interested in learning more about how Multifamily Syndications work? Please visit www.spiadvisory.com to learn about Michael's Real Estate Syndication business with SPI Advisory LLC.

You can contact us to get more choices