Maximize Protection: Key Language for Your Apartment LOI

ASK MIKE MONDAYS - Michael, I am starting to see activity in buying apartments; what additional prot...

oldcapitalpodcast oldcapitalpodcast | 3 years ago

Michael shares with you his thoughts on negotiating a potential purchase sales contract and what protection language you should or should not add into the terms of the transaction. Michael gives you the insight on what is happening today in apartment investing. 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 former ‘loaner- of money’ and now a “owner- of commercial real est...

ASK MIKE MONDAYS: Michael, I am buying an apartment building, what due diligence items should the se...

oldcapitalpodcast oldcapitalpodcast | 5 years ago

ASKING and GETTING are two different things when dealing with a seller. Michael explains what critical financial and physical information you must ask the seller to produce before your earnest money is at risk. Make sure you download Michael’s “DUE DILIGENCE CHECKLIST” at the Old Capital Podcast website at OldCapitalPodcast.com. This CHECKLIST gives you the best breakdown of items you need to review.

ASK MIKE MONDAYS - Michael, I am thinking of buying a $1 million apartment building and should I put...

oldcapitalpodcast oldcapitalpodcast | 5 years ago

Michael gives an example on apartment loan structuring and what you should consider BEFORE you lock yourself in with a future large prepayment penalty. When you are buying your first apartment building and it qualifies for a long term Freddie Mac loan, you may want to consider additional financing options if you are thinking of selling within the next 5-7 years.

ASK MIKE MONDAYS - Mike….I am a fairly new real estate operator….what should I do first?

oldcapitalpodcast oldcapitalpodcast | 3 years ago

Well….you need to find deals and find money! Building relationships with brokers, equity investors, contract attorneys, lenders, physical engineers, & SEC attorney should be your first course of action. Some folks may use LOOPNET to find their first deal and that is OK, but most SERIOUS BUYERS contact listing agents in the market. Don’t be a jerk…this is a small business and word will get around. Sound advice in any business. Michael Becker has purchased over 10,000 apartment units between...

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, 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.

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?

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, I don’t want to SOUND LIKE A ROOKIE; what questions should I ask the...

oldcapitalpodcast oldcapitalpodcast | 2 years ago

Nobody wants to sound like a rookie when they first enter the apartment business. Especially when having an initial conversation with an important listing broker. Michael, gives you some preliminary questions to ask. Also, when should you bring in your property management company or the lender to review the deal? Finding the right balance on WHEN you should bring in your advisors is critical to your success. In addition, Michael offers you a few examples of when he stumbled in operating apartmen...

ASK MIKE MONDAYS - I am under contract and buying an apartment building. I’ve been contacted by th...

oldcapitalpodcast oldcapitalpodcast | 5 years ago

A lender needs to understand the value of the collateral. Even though you paid for the appraisal, the appraiser is hired and works for the bank. They will not discuss value with the buyer until after they have completed their final report. If you meet the appraiser at the property and you mention that you are going to do some specific rehab; the appraiser will more than likely add that into their report. So…be careful in speaking to the appraiser, if you haven’t confirmed those improvements....