ASK MIKE MONDAYS - What are the TOP LOAN PITFALLS? Can you g...

oldcapitalpodcast oldcapitalpodcast | 5 years ago

Michael explains some of the obstacles that may trip you up when applying for a commercial real estate loan. You have too much at risk- financial & reputation risk, not to understand some of the hurdles you may encounter.

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 - 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 - What are the BIGGEST MISTAKES in owning an apartment building?

oldcapitalpodcast oldcapitalpodcast | 5 years ago

Michael has seen owners fail in executing their apartment ownership strategy. With that information, he discusses some of the common failures that may paralyze you in apartment ownership and how to overcome those obstacles.

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

oldcapitalpodcast oldcapitalpodcast | 6 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 - 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 ...

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 ...

ASK MIKE MONDAYS - Michael, what are the LIQUIDITY & NET WORTH requirements from a lender to qualify...

oldcapitalpodcast oldcapitalpodcast | 4 years ago

Buying a large apartment building is NOT a NO CASH/ NO NET WORTH/ NO CREDIT business model. The lender needs to see the depth of your balance sheet. Your lender is going to loan you thousands of dollars and wants to make sure that they are comfortable with your balance sheet. Michael breaks down what typical apartment lenders need.

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.