Ask Mike Mondays: Apartment Market Analysis & Insights

ASK MIKE MONDAYS: Michael, I’m an Apartment investor; Is there a crash coming and will I lose all ...

oldcapitalpodcast oldcapitalpodcast | 5 years ago

Michael examines the state of the apartment market and discusses an interesting article that Freddie Mac provided. Please read: https://globenewswire.com/news-release/2018/10/17/1622867/0/en/Struggling-with-Housing-Costs-Renters-Continue-to-Find-Affordability-in-Renting.html

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, 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.

ASK MIKE MONDAYS- Michael, how do you prepare for a TAKEOVER of an apartment building?

oldcapitalpodcast oldcapitalpodcast | 4 years ago

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.

ASK MIKE MONDAYS - Michael, I’m a PASSIVE INVESTOR and I am reviewing someone else’s underwritin...

oldcapitalpodcast oldcapitalpodcast | 6 years ago

IF you are a passive investor you want to review a realistic PROFORMA before you invest. Michael discusses line items on the operating statement such as rental rate growth, loss to lease, property tax step-up costs, and future labor costs. Are the assumptions from the SPONSOR too aggressive?

ASK MIKE MONDAYS - Would you build an apartment building?

oldcapitalpodcast oldcapitalpodcast | 6 years ago

Michael gives reasons on why he would NOT build large apartments at this time.

ASK MIKE MONDAYS - Michael Becker is interviewed by SVN’s apartment agent Mark Allen

oldcapitalpodcast oldcapitalpodcast | 6 years ago

Mark Allen is with SVN’s office in Dallas. He is a licensed apartment Realtor and has a podcast focused to apartment buyers. Mark interviews Michael Becker on the challenges of deal flow.

Old Capital Real Estate Investing Podcast with Michael Becker & Paul Peebles: Ask Mike Mondays: “M...

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 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...

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...