Ask Mike Mondays - When rehabbing a value-added property; where do you start first?

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Always have a physical due diligence report done BEFORE you buy the property. Make sure that you understand the rental submarket and the tenant demographics. Rely upon the information from a qualified property management company that operates in the same submarket. Don’t over improve the asset too much for the submarket; if the market doesn’t recognize the improvement (pay you more rent) you could have thrown good money after a bad idea. Listen to Michael's thoughts

Episode 79 - Meet the CBRE- Dallas Team that did over $1.5 billion in apartment sales last year

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Chris Deuillett and Danny Baker


Chris has been selling older (Class B & C) apartments in the Dallas market for 17 years. Chris comes from a family of real estate professionals; his two brothers and father are in the business. Danny is originally from Wisconsin and has been selling newer (Class A, A-, B+) apartments in the Dallas market for 7 years. CBRE is a Fortune 500 company that represents buyers and sellers of all different asset classes throughout the globe. In 2016, the Dallas CBRE office did over $1.5 billion in multifamily sales. Perspective: Chris is seeing a lot more buyers in the market with less inventory than last year. The biggest challenge today; too many buyers, not enough sellers. DFW market is one of the top markets in the country for rent growth & occupancy on already built apartments. The amount of new construction supply of apartments in Dallas is a concern, but not too big because the new construction does not really compete against older assets with lower rent costs for work force housing. The recent rise in interest rates did have some effect of the reducing the value of assets. Advice: When sellers are listing their properties: have a good story on what the next buyer can do to increase value and also do not change management companies right before you decide to sell. How does CBRE help the seller choose a new buyer? Have your ducks all lined up; financing, equity, initial rehab budget, management company review operations and then actually visit the property. CBRE uses a questionnaire to qualify a potential new buyer and when a potential buyer is identified, they will do an introduction call with the buyer and seller. Doing well on the phone interview with the listing agent and the seller is critical. Why are sellers selling today? Loan is maturing or partnership has completed their original business plan. Building a personal relationship with the listing broker is critical to your success. 
Contact: Danny Baker at danny.baker@cbre.com or Chris Deuillett at Chris.Deuillet@cbre.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 email us at INFO@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

Did you know that when you leave a positive review on iTunes it improves our ranking and helps us recruit great guests ? Can you leave us a positive comment at the Old Capital Real Estate Investing Podcast with Michael Becker & Paul Peebles ? Click here to leave a review on iTunes

Episode 78 - These rookies bought $27 million in apartments and still have their full time IT jobs

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In less than 10 months, Venkat and Ramana, purchased 3 apartment buildings in 3 different states with over 500 units, for $27 million. Now, they are hooked on buying apartments.

Venkat is the IT Services business. Initially, he started buying single family homes. From 2007-2014, Venkat had purchased over 20 homes. He maxed out his ability to get long term Fannie Mae home loans and wanted to learn how to scale his real estate business. He found an apartment mentor that specifically taught multifamily investing. He then found a partner with Ramana in that same mentoring group. Ramana is the IT Services business for 13 years. He had done some investing in real estate, but on a limited basis. 
First transaction was in Norman, Oklahoma. Second transaction was in Phoenix, Arizona.
Third transaction was in Mesquite, Texas.
Phoenix seller forced buyers (Venkat & Ramana) to use their local mortgage company. After 3 weeks, their mortgage company could not deliver. Buyers brought Old Capital into the transaction. Old Capital was able to close within 43 days and with max 80% leverage and a non recourse loan. 
Next deal, Tradewinds Apartments was a $15 million acquisition in Mesquite, Texas. James explains the difference between CapX and Re-Incurring expenses and why it is important when you need to qualify for the loan. Venkat relied upon his property management company to research the submarket to make sure they could hit higher rents. 
What we learned: More transactions that you do, the easier it becomes to raise capital from limited partners. You can make 50 calls to new investors and explain it 50 times; or you can invite 50 friends and investors and do a recorded webinar and explain it one time with slides by explaining the benefits of investing in your deal. Being part of an apartment mentoring group can help you bring your apartment investing business to the next level. 
Connect: Venkat at get2venkat@gmail.com Ramana at rmkorada@yahoo.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 email us at INFO@OldCapitalLending.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

Did you know that when you leave a positive review on iTunes it improves our ranking and helps us recruit great guests ? Can you leave us a positive comment at the Old Capital Real Estate Investing Podcast with Michael Becker & Paul Peebles ? Click here to leave a review on iTunes

Episode 77 - Learn to grow your portfolio to 10,000 units

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John Griggs, with Presidium Group in Dallas, owns over 10,000 apartment units. He co-founded the company in 2002.


John and his business partner Cross Moceri, were unhappy lawyers in California when they got bit by the real estate bug. They first started buying, rehabbing, and selling single family homes and four-plex’s in California. They wanted to expand, and after looking into several markets throughout the country, John and Cross decided on investing in Dallas. 1000 units eventually became 5000 units in just a few years. Presidium stayed on the sidelines, during the recession.
At first, Presidium started buying value added ‘C class’, now they are building large new apartments in good areas and still buying value added ‘B class.’
Tips: In a declining market, you don’t want to be the last guy to change your rent structure. You want to meet the market. Don’t keep your head in the sand; keep the building filled!


Keep your property clean with good maintenance during a down turn.
Buy and renovating apartments still works in Texas. Make sure the neighborhood can support the rent bumps after the rehab. Do your homework. 
Getting started in new apartment development was a very steep learning curve. Mitigate your risk with having the best team (bankers, general contractor, architects) on your side.
When buying a building, make sure that you raise more equity than you need too, because you can always give it back to the investors if you don’t need it. Don’t get caught short with capital at the beginning. Contact John at JGriggs@presidiumre.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 email us at INFO@OldCapitalLending.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.

Did you know that when you leave a positive review on iTunes it improves our ranking and helps us recruit great guests ? Can you leave us a positive comment at the Old Capital Real Estate Investing Podcast with Michael Becker & Paul Peebles ? Click here to leave a review on iTunes