Episode 94 - Al Silva - TOP PRODUCING BROKER gives inside tips on how to win an apartment deal

Al Silva has successfully closed nearly 15,000 units and over $600 million in investment sales transactions and in doing so has averaged an industry leading 99.6% closed sales price to asking price ratio. Al is currently based out of the Marcus & Millichap Fort Worth office, where he has been the top agent in seven out of nine years since the office opened in 2007. 
You think it’s tough to be awarded a deal by the seller… Al comments on how difficult it is even for a listing agent to win the opportunity to list a property for the seller. Al believes that overall transactional volume will be down 10% in 2017 compared to 2016. He sees that as a blip on the road, when you compare how hot the apartment market has been for the last few years. Al has seen a large increase of international buyers coming into the Dallas/ Fort Worth market. Al comments on what submarkets he likes in the DFW area. If you are a buyer, Al has advice on how you should bid on a property transaction on the tangibles and some of the intangibles needed to win. 

To get in contact with Al Silva: al.silva@marcusmillichap.com

To receive our FREE 15 page WHITE PAPER REPORT on the 2017 FUNDAMENTALS OF MULTIFAMILY FINANCING 101 and to learn more about upcoming events at Old Capital Speaker Series please visit us at OldCapitalPodcast.com
Are you interested in learning more about how Multifamily Syndications work? Please visit www.spiadvisory.com to learn about Michael's Real Estate Syndication business with SPI Advisory LLC.

ASK MIKE MONDAYS - Who does the REAL ESTATE BROKER work for and who pays their fee?

Michael discusses who represents the buyer and seller and who pays the listing agent. In today’s HOT apartment market…most apartment listing agents WILL NOT share the sales commission with a buyer’s representative. Unlike the single family home market, where it is typical for the listing agent to share or split commission fees, most apartment listing brokers will not pay your agent representing you. If you have buyer’s agent in a buyer’s transaction, you will likely be paying that agent out of your capital raise.

Episode 93 - Newbies #2 - Buying your first deal

This is the second podcast focusing on the new apartment buyer. “The first transaction is the hardest…” continues to be our theme. Today, we talk to a couple that was motivated to think about creating a passive income stream by a serious car accident. That life changing event put a new perspective on how important passive income can be. Doug is a dentist in north Texas and was severely injured in an auto accident. He was in a coma for over a week and in physical therapy for months. Imagine not being able to work and earn income during the period time that you are recovering. Think of the impact that this would have on your family. This may never happen to you; but it could. Perhaps passive real estate income should be part of your investment plans. 
Doug & Jennifer Jopling own a small apartment building in Fort Worth, Texas. We focus on the journey from owning a few single family rental homes to buying an apartment building. Doug & Jennifer share a challenge that they uncovered during the due diligence process. Listen to what was found and how they overcame the unique challenge.
To contact Doug or Jennifer: geronimoproperty@gmail.com
To receive our FREE 15 page WHITE PAPER REPORT on the 2017 FUNDAMENTALS OF MULTIFAMILY FINANCING 101 and to learn more about upcoming events at Old Capital Speaker Series please visit us at OldCapitalPodcast.com
Are you interested in learning more about how Multifamily Syndications work? Please visit www.spiadvisory.com to learn about Michael's Real Estate Syndication business with SPI Advisory LLC.

ASK MIKE MONDAYS - Will a FED RATE hike have an impact on Commercial Real Estate?

Yes and No…. After the Fed’s raised rates last week; the 10 year treasury fell. The 10 year treasury is the benchmark interest rate for many commercial real estate transactions. The long term interest rates are getting flatter as compared to the short term interest rates. At this time, it should have a limited impact on investor that purchase or own commercial real estate for a long term hold. We have seen interest rates RISE with the community banks. Many investors use community or regional banks for short term bridge lending. That small rise should not have a significant impact; but be aware in the future if your loan is tied to an adjustable rate index.

Episode 92 - Newbies #1 - Buying your first deal

Buying your first apartment building is the hardest.   The second and third become substantially less stressful and much easier …because you have created a “team template” for successfully closing an apartment transaction.  You have put your team together.   You have your banker, attorney, broker, insurance professional, third party property management company & physical inspector or engineer.  Just like the general manager of a baseball team…you cannot play without players…  You cannot close without a support group.
Gary & Heidi Young bought their first apartment building a few months ago.  They wanted to start off with a small property so that they could own and manage themselves.   Gary & Heidi knew that owning and investing in apartment building you would need specialized education. Before they invested in real estate, they invested in education.   Gary & Heidi knew that owning and investing in apartment buildings you needed specialized education.  They joined a local education and mentoring group to give them a confidence boost.   Recently, they closed on an 11 unit apartment building.  They enjoy the thrill of buying something and making it better. 
 
To contact Gary or Heidi:  txinvesting@gmail.com
 
To receive our FREE 15 page WHITE PAPER REPORT on the 2017 FUNDAMENTALS OF MULTIFAMILY FINANCING 101 and to learn more about upcoming events at Old Capital Speaker Series please visit us at OldCapitalPodcast.com
 
Are you interested in learning more about how Multifamily Syndications work?  Please visit www.spiadvisory.com to learn about Michael's Real Estate Syndication business with SPI Advisory LLC.

Episode 91 - Why do we BUY real estate? CPA’s Mark Patten & Mandy Thiebaud show us the numbers

Mark Patten & Mandy Thiebaud are CPA’s with McKinnon Patten & Associates in Dallas. Their firm provides comprehensive tax, accounting and advisory services to a full range of real estate professionals and entities. Mark & Mandy are experts in advising clients on why owning real estate is more than just a return on your investment. With multiple IRS tax implications, the CPA’s layout some structural ideas on how to put your transaction together. 
Mandy explains the different ways earned income and passive income are treated by the IRS.
She also handles the difference between on-going replacements & repairs versus a capital expense. Mark talks about cost segregation studies and how rapid depreciation could help your real estate investments. What is a 1031 exchange and how can investors benefit? Mark talks about the tax benefits that a like-kind exchange can bring investors. 

To contact Mark or Mandy: mpatten@mckcpas.com

To receive our FREE 15 page WHITE PAPER REPORT on the 2017 FUNDAMENTALS OF MULTIFAMILY FINANCING 101 and to learn more about upcoming events at Old Capital Speaker Series please visit us at OldCapitalPodcast.com
Are you interested in learning more about how Multifamily Syndications work? Please visit www.spiadvisory.com to learn about Michael's Real Estate Syndication business with SPI Advisory LLC.

ASK MIKE MONDAYS - What should I be aware of when applying for BANK financing?

Not all Lenders are the same; some Banks are not real estate lenders. 
Not all Lenders like Apartment loans
Not all Lenders like older properties that need to be rehabbed and repositioned
Not all Lenders like non-recourse loans; most will not even offer non-recourse loans
Not all Lenders will like the part of town that you want to invest in.
Not all Lenders will give you maximum leverage to acquire and rehab with your loan
Not all Lenders will amortize apartment loans greater than 15 years

Your large bank loan officer is not the decision maker; help him/her build a case for their credit committee to approve the loan. Loan officers are sales people and problem solvers, but they don’t have signing (approval) authority.