Deal Sponsors Consider Offering Preferred Rate of Return

ASK MIKE MONDAYS - Michael, What do you think about sponsors offering a PREFERRED RATE OF RETURN to ...

oldcapitalpodcast oldcapitalpodcast | 5 years ago

Michael discusses the opportunities and challenges that deal sponsors must consider IF they want to offer equity investors a preferred rate of return on their investment.

ASK MIKE MONDAYS - Michael, I am thinking of investing into a mix-use property; what do you think?

oldcapitalpodcast oldcapitalpodcast | 5 years ago

Many apartments may have retail or office space included within an apartment structure. A small grocery store, a coffee shop, or a nail salon can be the typical retail store you may find attached to the apartment building. Mike explains what to look for when purchasing a mix-use property.

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.

ASK MIKE MONDAYS - Michael, what should an ASSET MANAGER do?

oldcapitalpodcast oldcapitalpodcast | 5 years ago

An asset manager oversees the property on behalf of the investors. They report any financial or physical changes (good or bad) to the general partner. They help in managing a solution. When you own a small property (10-30 units) you are the ASSET MANAGER…. When you purchase a larger property or own more apartment communities, you may need to hire an asset manager. Remember, your job, as a general partner is to find more apartment purchase opportunities and find more equity. An asset manager wi...

ASK MIKE MONDAYS - Michael, tell me about a RECENT SUCCESS STORY.

oldcapitalpodcast oldcapitalpodcast | 5 years ago

Michael shares a success story of an investor that sold a NEGATIVE CASH FLOWING four-plex in California and replaced it with a large apartment building in Texas that produces a LARGE CASH FLOW stream. Can you do that?

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

oldcapitalpodcast oldcapitalpodcast | 4 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 ...

oldcapitalpodcast oldcapitalpodcast | 4 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 ...

ASK MIKE MONDAYS: Michael, how do you DE-RISK an apartment transaction?

oldcapitalpodcast oldcapitalpodcast | 4 years ago

Today, many sellers and listing agents require buyers to put a substantial amount of NON REFUNDABLE earnest money up front…BEFORE they do certain due diligence analysis. As you can imagine, the seller wants to make sure you are financially committed to the transaction without the risk of a future re-trade. Michael explains how he gets comfortable on putting significant hard earnest money upfront on an apartment acquisition.

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 - Michael, What do you think about sponsors offering a PREFERRED RATE OF RETURN to investors?

ASK MIKE MONDAYS - Michael, What do you think about sponsors offering a PREFERRED RATE OF RETURN to investors?

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ASK MIKE MONDAYS - Michael, What do you think about sponsors offering a PREFERRED RATE OF RETURN to investors?

ASK MIKE MONDAYS - Michael, What do you think about sponsors offering a PREFERRED RATE OF RETURN to investors?