Typically, your lender brings in 75-80% of the capital needed to purchase an apartment property. Obviously the lender is very important to helping you complete the transaction. A lender term sheet gives you a rough indication of what rates and leverage could be. Michael discusses the basics of a lender term sheet. Paul also discusses the challenges of the GREEN PROGRAM in the future. FIND OUT-UP FRONT- if the seller has already implemented a utility savings program on the property. The GREEN PROGRAM rewards borrowers for investing in smart energy and water-saving improvements for a refinance, acquisition, or supplemental financing with a lower interest rate and more loan dollars. Something to be aware of: If the seller had previously completed the work that will save 20% in water or energy costs for either the landlord or the tenant; the new buyer may be challenged to find additional utility savings. If no additional savings are found by the energy audit, you will not get the interest rate savings or additional loan dollars. Yikes!
In Depth Interviews with Real Life Investors
Paul Peebles & Michael Becker
The Old Capital Podcast is aimed at Real Estate Investors - both new and experienced.
Hosts Michael Becker and Paul Peebles deliver no-hype education and expert perspectives.
You will gain valuable insights from interviews with actual real life investors who are active in acquiring and operating apartment complexes. You will discover how they are identifying, financing and operating apartment complexes, as well as helpful advice on how to get started and avoid common mistakes.