Episode 82 - They are all still friends after buying a 142 unit apartment building together

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Friends for over 17 years; Boris, Oshi, Leonid & Albert currently live in Northern California and now own 200 apartment units in Dallas, Texas. How do hardware designers that live over 1700 miles away, find, own and operate apartment buildings? Boris chats with James on how they found their first 55-unit apartment property and how they managed a $300,000 rehab project from a long distance. After the rehab, the partners were able to increase rents by over 30% a unit. They increased NOI dramatically, thus increasing value. They did not syndicate this deal. They only used their own personal funds.
The next purchase was a 142 unit- Class C property in Arlington, Texas. They purchased a slight value added property. They had to assume the current Fannie loan and apply for a “second lien” supplemental to get total leverage up to 75%. Wow! That was a tough one. They had only owned their first property for a little over a year…and now they were going to double the size of their portfolio. Fannie had to get comfortable with the new sponsor and their management company. Fannie knew the seller (they liked his long term ownership experience) and now we had to convince Fannie to substitute them with a new “limited experience” buying group. Yikes!! We got it done. 
The guys explain on how they are educating potential multifamily investors in the Bay area. They run a successful MEETUP GROUP in Las Gatos, California. They believe MEETUPS are a great ways of bringing investors together.
Advice to new apartment buyers…make sure you have the correct rehab amount needed upfront when applying for a loan…and never think you can take it out of cash flow. Have more money; than less. It’s always easier to return investors’ money- than having a capital call with your investors. 

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.

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Episode 81 - The Passive Income Physician

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Thomas & Timothy Black are brothers and principals at Napali Capital, LLC.  
Napali Capital acquires and operates Class B & C apartments. Tim recently retired as the chief operating officer for GREAT WOLF LODGE corporation.  Tom is currently an EMERGENCY ROOM DOCTOR that also helps physicians and other high-income professional overcome career crisis by teaching them how to expand their personal net worth through passive income real estate.  What a combination! These brothers have something going for themselves.
 
Why should doctors look into investing in commercial real estate?  Tom reflects on the high rate of burn out with critical care professionals.  In the last three years…6 in 10 emergency room doctors are burned out with the excessive amount of hours worked, government intervention, lawsuits, patient satisfaction and declining insurance reimbursement.  Tom acknowledges that physicians have high income, but they have limited personal net worth. Typically, physicians are not financially savvy due to the time that is needed to learn and master their medical craft. What medical school fails to teach doctors, Dr. Black educates. Tom’s newly released book is called “The Passive Income Physician.”  Tom shares a memoir/ guidebook that helps high-income professionals understand how passive income through commercial real estate investing can help buy back your freedom. The book has a very “Rich Dad / Poor Dad” theme. 

Contact Tom & Tim Black at http://freedomintheblack.com/author/tomblack/ 
“The Passive Income Physician” is at https://www.amazon.com/Passive-Income-Physician-Surviving-Expanding/dp/0692827404

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

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 80 - Listen to who the Apartment Experts listen to: Greg Willett

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Greg Willett- Chief Economist
RealPage

RealPage is the leading provider of on-demand software solutions for the rental housing industry. RealPage supplies property management software to over 12,000 ownership groups that own or control over 30,000,000 residence units. They are the Facebook or Google in their industry. RealPage collects a tremendous amount of data on trends within rental housing throughout the country. Greg and his team analyze the up to the minute data. They are data miners. Greg believes that this strong rental cycle started in 2010 with huge demand. 2017 will still have great performance for the nation. Probable peak on annual rental revenue growth was in 2016. Golden age of apartments is now; but it is not realistic to expect for continuous sustainability. Rent growth is good at 3.5%. Developers are continuing to build apartments. They will deliver over 360,000 units nationally this year. Greg likes Sacramento, the Inland Empire in California, Las Vegas, Seattle, & DFW.
Texas has 4 major markets.  
DFW is a step ahead than other Texas markets with rent growth at 6%. Almost 50,000 units under construction right now in DFW. Houston, is seeing some pricing concessions and rental cut on mostly A product. Austin is seeing a little slow down from the year before with rental growth at 3%. San Antonio is the most stable of the Texas markets. Rent growth is at 3%. 
In 2017, Dallas will deliver over 25000 brand-new Class A units. Still big gap between A & B product; A vs B is a 40% rental price difference. Annual rent growth on value added B is 6%. DFW added 680,000 new jobs since 2010. Qualification index: Rent to Income ratio has stayed the same from 2010. Never one type of renter profile.  
RealPage: https://www.realpage.com
MPF Research: https://www.realpage.com/mpf-research/
Dallas/ Fort Worth: https://www.realpage.com/mpf-research/apartment-demand-drives-dallas-fort-worth/

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Interested in learning more about how Multifamily Financing and connecting with Michael Becker and Paul Peebles. Contact: MBecker@spiadvisory.com or PPeebles@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.

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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