ASK MIKE MONDAYS - Can you force the seller to keep their FO...

oldcapitalpodcast oldcapitalpodcast | 5 years ago

You WILL HAVE A PROBLEM with your loan…if the seller does not keep their eye on management operations and rental collections between the signing of the sales contract and the closing date. Lenders can possibly cut back loan proceeds if income declines or expenses rise.

ASK MIKE MONDAYS: “Mike, what POSITIVE things are you seeing today in APARTMENTLAND?”

Nationwide Commercial Real Est... Nationwide Commercia... | 7 months 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, on an acquisition have you ever had the SELLER CARRY-BACK the loan?

oldcapitalpodcast oldcapitalpodcast | 3 years ago

Occasionally, seller financing is an option to purchase a multifamily property. The seller becomes the lender. A regional bank…or Fannie Mae is not used to finance an apartment building. Michael discusses what he is seeing today in today’s market and why or why not seller financing is used.

ASK MIKE MONDAYS - Can you give me a description on how NOI is calculated?

oldcapitalpodcast oldcapitalpodcast | 5 years ago

Net Operating Income is the key metric in the multifamily world for investing and financing. The two main components are operating income and operating expenses. Mike breaks down some line items on the operating statements and tells you what you need to look for.

ASK MIKE MONDAYS - Can you talk about the various levels of property management?

oldcapitalpodcast oldcapitalpodcast | 5 years ago

When you hire a third party management company they perform several functions. 1) Accounting 2) Human Resources (employees work for the management company- not you) 3) Structured onsite and overseeing management. If you don’t hire a third party contractor to handle these specific jobs, then you are the management company and have to perform all those functions.

ASK MIKE MONDAYS -What can I expect when a building catches on fire?

oldcapitalpodcast oldcapitalpodcast | 6 years ago

ASK MIKE MONDAYS - Michael, how can I negotiate with the lender on a PCA report? (Property Condition...

oldcapitalpodcast oldcapitalpodcast | 3 years ago

When you purchase an apartment building, your lender typically requires a PCA. (Property Condition Assessment). The PCA is the eyes and ears for the lender. Yes, the appraisal verifies the value, but the PCA identifies health and safety issues on the property. Can someone get hurt on your property because of the existing deferred maintenance. It also determines the amount replacement reserves that the lender will need to collect with your monthly payment. Michael, discusses items that you need t...

ASK MIKE MONDAYS - Can I get a LOAN PRE-APPROVAL on an apartment transaction?

oldcapitalpodcast oldcapitalpodcast | 5 years ago

Michael discusses what lenders are looking for when applying for financing on an apartment transaction. With apartment lending- the quality, condition and location of the asset are the most important factors in underwriting. A PRE-APPROVAL is not going to be available because 2/3rds of an apartment lending decision is based on subject property. The lender needs to have a complete picture on a number of critical underwriting variables. Examples: Where is property located and age? What are histo...

ASK MIKE MONDAYS - How do make sure the seller DELIVERS the property in the condition that you origi...

oldcapitalpodcast oldcapitalpodcast | 5 years ago

 Michael discusses what you should do to protect yourself right BEFORE you sign your loan documents and close on an apartment building.

ASK MIKE MONDAYS - Michael, can you define what KEY PRINCIPAL is?

oldcapitalpodcast oldcapitalpodcast | 3 years ago

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 ...