Ask Mike Mondays: Largest CAP X Expenditures in CLASS C Apartment

ASK MIKE MONDAYS - 1) Mike, when buying a CLASS C apartment, what is the largest CAP X expenditures ...

oldcapitalpodcast oldcapitalpodcast | 5 years ago

Upfront physical due diligence is critical when purchasing any apartment building. Have your engineer/ general contractor review all components to the apartment. Not reviewing deficiencies with your electrical, plumbing and sewer, foundation and roof can be the iceberg that sinks the investor’s ship.

ASK MIKE MONDAYS - Michael, what asset class is going to take the biggest hit; A, B, C after this pa...

oldcapitalpodcast oldcapitalpodcast | 3 years ago

Michael Becker discusses what he is seeing in the apartment investing market today. Michael Becker has purchased over 10,000 apartment units between Dallas and Austin Texas. He is a former commercial banker and has a unique perspective of being of a ‘loaner’ and now a “owner” of commercial real estate. Please leave us a 5 STAR RATING on iTunes; if you enjoyed this podcast.

ASK MIKE MONDAYS - Mike, when considering at a possible apartment acquisition; what is the first thi...

oldcapitalpodcast oldcapitalpodcast | 5 years ago

You may have to look at several apartment opportunities BEFORE you find the right one. The ability to underwrite a transaction quickly will help you make swift decisions on whether to pursue with additional analysis time or drop the deal. Mike discusses the specific documents the seller needs to provide you to analyze the transaction correctly.

Old Capital Real Estate Investing Podcast with Michael Becker & Paul Peebles: ASK MIKE MONDAYS: “M...

Nationwide Commercial Real Est... Nationwide Commercia... | 1 year ago

As you can imagine, with interest rates rising, many apartment investors have been pencils down. Investors are concerned with lower asset value & higher debt service. Is there any good news out there? What are some of the positive ideas that are occurring in apartment investing? Mike is starting to see some positive “green shoots.” Mike discusses some of those encouraging thoughts on what he is seeing in apartment investing. Listen to the guy that has acquired over 14,000 apartment units. Ar...

ASK MIKE MONDAYS - Michael, What is a LURA?

oldcapitalpodcast oldcapitalpodcast | 5 years ago

To promote affordable housing, some older properties may have an income restricted LURA. A LURA is a LAND USE RESTRICTION AGREEMENT. It runs with the deed. This recorded regulatory agreement may restrict the amount of rent you can charge a tenant, based on the tenant’s income. If you rehab a property and are expecting to increase rents to justify the cost…a LURA may prevent you from being able to raise rents in the future. Make sure you ask the seller’s agent if the property has a LURA.

Nationwide Commercial Real Est... Nationwide Commercia... | 1 year ago

Mike gives us an update on what to expect when you are raising capital to fund a transaction. First- it was higher interest rates, Second- it was the seller and the buyer not knowing the current value of property because cap rates have expanded, And Now, its raising equity to fund a deal. Are there LP’s wanting to invest? Michael chats about how a typical capital raise is going today. Listen to the guy that has acquired over 14,000 apartment units. Are you interested in learning more about h...

ASK MIKE MONDAYS - Should we ask the seller for bank statements when buying an apartment building? I...

oldcapitalpodcast oldcapitalpodcast | 6 years ago

Michael uses his DUE DILIGENCE checklist to help him request documents from the seller. Everything is written out and are standard items for the seller to deliver. Make sure that you get a copy of this ‘wish-list’ at the OldCapitalPodcast.com website.

ASK MIKE MONDAYS - What do lenders look for when approving an apartment loan?

oldcapitalpodcast oldcapitalpodcast | 7 years ago

70% of the lending decision is based on the building operations (historical and future) and 30% is based on the sponsor (liquidity, net worth, past ownership experience of apartments) Listen to Michael explain what’s important in apartment financing.

ASK MIKE MONDAYS - What is the State of the Market?

oldcapitalpodcast oldcapitalpodcast | 6 years ago

Top of the market (A+ institutional construction) is getting a little frothy in the urban core and suburban markets throughout the nation. Spread between the A property and C property is flatting on the cap rates. Coming out of the 2008 recession the A’s recovered first and then the B’s and C’s followed. The cap rates between the different property types have compressed tremendously. Mike gives his insight on why his group is focusing on the “top of the work force housing” space.

ASK MIKE MONDAYS - Michael, when is the economic slowdown coming in apartments?

oldcapitalpodcast oldcapitalpodcast | 4 years ago

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.

ASK MIKE MONDAYS - 1) Mike, when buying a CLASS C apartment, what is the largest CAP X expenditures you can expect? 2) What are the biggest mistakes when buying older apartments?

ASK MIKE MONDAYS - 1) Mike, when buying a CLASS C apartment, what is the largest CAP X expenditures you can expect? 2) What are the biggest mistakes when buying older apartments?

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ASK MIKE MONDAYS - 1) Mike, when buying a CLASS C apartment, what is the largest CAP X expenditures you can expect? 2) What are the biggest mistakes when buying older apartments?

ASK MIKE MONDAYS - 1) Mike, when buying a CLASS C apartment, what is the largest CAP X expenditures you can expect? 2) What are the biggest mistakes when buying older apartments?