Episode 178 - Second Quarter 2019: Apartment Loan Officer Roundtable

What’s WORKING or NOT WORKING…in the capital markets. Old Capital commercial loan officers-James Eng, Dave Walls and John Brickson discuss what is happening in apartment lending. Paul Peebles relays an important story about the possible financial impact of the “NEW” SOCIAL SECURITY ADMINISTRATION’s- NO MATCH letter verifying authenticity of your employee’s social security number. This could be challenging for the employee, the employer, and the tenant in your building. What happens to labor costs and apartment occupancy if undocumented employees lose jobs? John Brickson and Dave Walls chat about competitive advantages in buying apartment buildings today. James “the professor” Eng reminds us 1) expect rejection and learn from every ‘no’ 2) hire advisors like your life depends on it 3) you will have to do things- that don’t scale. Great insight from James.

Save the Date: 2019 Old Capital Conference - October 24-25 in Dallas, Texas

NPR Article on the NO MATCH LETTER: https://www.npr.org/2019/03/29/707931619/social-security-administration-plans-to-revive-no-match-letters

Contact: James Eng JEng@OldCapitalLending.com
Dave Walls DWalls@OldCapitalLending.com
John Brickson JBrickson@OldCapitalLending.com

To receive our FREE page WHITE PAPER REPORT on the (updated) 2019 FUNDAMENTALS OF MULTIFAMILY FINANCING 101 and to learn more about upcoming educational 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 more about Michael Becker’s Real Estate Syndication business with SPI Advisory LLC.

Episode 177 - No analysis paralysis here - 3 apartment purchases within 12 months

Beware of internet scammers when it comes to raising money for apartment investing.
In the first part of the podcast, Paul discusses a real problem that recently occurred to one of his borrower. The sponsor’s email address and database were hacked. The scammers sent out emails to the borrower’s investor database asking for $250,000 for additional rehab on an apartment building owned by the borrower. The scammer offered an unbelievable 45% rate of return. The scammers false email address was close to the borrower original- except a small “i” was added into their faux email address. Fortunately, a few spelling errors were caught by alert passive investors that felt that the email was fake and reported it.
BEFORE sending money to your general partner, make sure that the transaction is real and the wiring instructions are correct.
In the second part of the podcast- Kathryn Schmeltz, Jimmy Edwards and Tim Hammick came together to buy apartments. Within 12 months of forming their team, they had purchased 3 large apartment buildings. 2- Deep Value added buildings; 1- Stabilized building. They discuss some of the challenges they have encountered.

1st property purchased: 16 units
https://el-paso-apartments.business.site
2nd property purchased: 100+ units
https://www.courtyardsonthepark.com
3rd property purchased: 100+ units
http://www.falconridge-apts.com

To contact: www.HighFiveMultifamily.com

To receive our FREE page WHITE PAPER REPORT on the (updated) 2019 FUNDAMENTALS OF MULTIFAMILY FINANCING 101 and to learn more about upcoming educational 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 more about Michael Becker’s Real Estate Syndication business with SPI Advisory LLC.

ASK MIKE MONDAYS - Michael, what rates of return can I expect for a multifamily investment and what real risks are there?

Michael explains the reality of investing in apartments today and what you can expect in the future. Investment expectations for investors have changed in the last few years. “Longer and Lower,” are the general themes of todays apartment investing market. Longer investing hold times with a lower rate of return can be expected.

Episode 176 - Transitioning from Wall Street to Apartment Investing: now owns over 500 units

Tauheed Saddiqui spent years working for banks and hedge funds. He would spend days on the road raising money from institutional investors. He loved it; but traveling was killing him and hurting his young family and wife. He needed to make a change and decided that real estate was going to be his new “9-5” job. He found that Wall Street was “advanced calculus,” and Real Estate was not even “algebra- but simple mathematics”. He replaced volatility with predictability. In Real Estate, he felt you were not going to lose 20% of its value over night. Tauheed liked that math and explored residential and commercial real estate. His first project was the construction of rental duplexes. He was hooked on Real Estate after building a 32 unit property. Tauheed wanted to own more units without using ALL of his own money. He found that raising money through a syndication was the ideal way to acquire, rehab and stabilize large, older apartment buildings. Listen to Tauheed’s journey into real estate syndication.

To contact Tauheed: TAASInvestments.com

To receive our FREE page WHITE PAPER REPORT on the (updated) 2019 FUNDAMENTALS OF MULTIFAMILY FINANCING 101 and to learn more about upcoming educational 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 more about Michael Becker’s Real Estate Syndication business with SPI Advisory LLC.

Episode 175 - “Where is the apartment market going?” Apartment Economist Greg Willett explains the future for investors

Greg Willett is the Chief Economist for RealPage. He is the nations top apartment economist that bankers, general partners and investors listen to. Here are some of his thoughts:

The U.S. apartment rents climbed 3.2 percent on an annual basis as of the first quarter of 2019. Annual rent growth has topped the 3 percent mark for six consecutive months, accelerating from a pace that had hovered around 2.7 percent in all of 2017 and in the initial nine months of 2018. Occupancy stood at 95.2 percent for the first quarter, edging up from 95.1 percent a year ago. However, since the cold weather months are a period of limited leasing activity, occupancy has slipped from its third quarter 2018 seasonal peak of 95.8 percent.
Greg mentioned, “It’s encouraging for apartment investors to see rent growth holding up so well when the new supply volumes are aggressive, while brand new properties still moving through the lease-up process tend to be offering discounts, pricing power actually has improved a bit for luxury developments where the initial resident base is now in place. Properties at middle-tier to lower-end price points are maintaining their already-strong rent growth momentum.”
Among the country’s large metros, local rent growth leaders are Phoenix and Las Vegas, each area posting annual price jumps around 8 percent. At the next tier of performance, rent growth reaches 5 percent or a little better in Atlanta, Greensboro/Winston-Salem, Memphis and Sacramento.
Some small metros are experiencing even stronger rent boosts. Rents are up 15.2 percent in the West Texas Oil Patch markets of Midland and Odessa, while price increases of roughly 7 to 8 percent are occurring in Wilmington, N.C.; Tucson, Ariz.; and Gainesville, Fla.
Houston’s performance is the weakest among big metros, with rents in the first quarter matching prices from a year ago. Slight rent cuts are occurring in three small markets: College Station, Texas; Fargo, N.D.; and Santa Rosa, Calif.

Visit RealPage at: RealPage.com

To receive our FREE page WHITE PAPER REPORT on the (updated) 2019 FUNDAMENTALS OF MULTIFAMILY FINANCING 101 and to learn more about upcoming educational 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 more about Michael Becker’s Real Estate Syndication business with SPI Advisory LLC.