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

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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

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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

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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?

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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.

Episode 90 - Raj and Raje: “Apartment investing changed my life.”

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Raj was a civil engineer for the City of Dallas for 17 years. His wife, Raje is a dentist. After losing a huge amount of retirement money in the stock market crash about 9 years ago, they went searching for another way to invest. They wanted something that they could control. They looked at many options… but were drawn to real estate. Before they invested a dime into real estate, they invested in high quality apartment education and mentoring. They wanted to learn the process of real estate and make sure they would not make critical and costly mistakes. Having a mentor reduces the time of ramp up.
Raj and Raje began buying value added apartment properties and then leverage them into several apartment complexes with over 600 units. Today, he is a former engineer with the City of Dallas and a full time apartment investor. 

Raj’s contact info: rajguntnur@icloud.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 is the State of the Market?

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Top of the market (A+ institutional construction) is getting a little frothy in the urban core and suburban markets throughout the nation. Spread between the A property and C property is flatting on the cap rates. Coming out of the 2008 recession the A’s recovered first and then the B’s and C’s followed. The cap rates between the different property types have compressed tremendously. Mike gives his insight on why his group is focusing on the “top of the work force housing” space. 

Episode 89 - Jacob Ayers interviews Michael Becker on purchasing over 4300 apartment units

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Recently Michael Becker was a guest on the Jacob Ayers Real Estate Podcast. Michael talks about his journey from being a commercial real estate banker to being “THE GUY” buying and operating apartments. 
Michael discusses what made him successful in winning the purchase sale contract when he first started in this competitive market. If you don’t have a qualified mentor, get one! If you don’t have a team of professionals to vouch for you (attorney, banker, management company, etc), get some! Your first deal will be the hardest….so leverage your team to help you succeed. 

Listen to jacobayers.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.

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