Episode 187 - Your property is hit by a TORNADO…now WHAT DO YOU DO?

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In the Midwest, around this time of the year, many apartment owners face the risk of bad weather that can destroy your asset. Darwin German’s 161 unit apartment building was recently hit by a tornado. It destroyed the roof on two buildings and affected 14 units. Fortunately no tenants were killed or hurt. We discuss what he did when he originally got the call that the tornado hit and now his plans on the rehab.
In the second part of the interview, Darwin explains language in his bank loan documents. Darwin refinanced a large apartment building with bank financing. The language in your loan documents is important. When you borrow money, the lender will have language and covenants that will always be slanted protecting the lender in case of default. Darwin goes through his bank loan documents and highlights some of the language that he and his attorney pushed back on with the lender. Having a seasoned “contracts” attorney to represent you in negotiations with the lender will help in your success.

To contact Darwin: darwin@darwingerman.com

https://www.darwingerman.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 186 - A MINDSET CHANGE a few years ago, leads to almost 1000 units owned today

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Bruce and Stephanie Petersen have purchased over a 1000 apartment units in the last few years, but they would not have done it unless they had a mindset change. The change was from being a W-2 employee to a real estate entrepreneur investing in apartments.
For over 18 years, Bruce was a hard worker in retail sales; often working over 80 hours a week and savings his money. He knew that there was a better life out there. After participating in a multifamily education and mentoring program; he got the confidence to start buying apartments.
Stephanie discusses her journey from being a former single mother and owning a few single family rental properties to becoming a key decision maker in a large apartment portfolio and what she does to advocate for her tenants to make a true sense “of community.”

To contact Bruce or Stephanie Petersen: APT-GUY.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 185 - NOT AN EXPERT ON APARTMENT INSURANCE? Jeff King explains the BASICS on what you need to know.

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Protecting your asset is critical in your success. You must have insurance to cover POTENTIAL problems.
Jeff King has been advising apartment owners on insurance matters for over 35 years. Ramey King Insurance was established in 1881. He “knows a thing or two, because he has seen a thing or two.”
Jeff discusses several topics: 1) What items do you need to get insurance quoted? 2) What coverages are necessary for the lender? 3) How much is the typical deductible? 4) What happens when you have a claim and how long before I get paid? 5) What is a master-insurance policy? How does that work?
6) Should you require a tenant to have ‘renters insurance?’

To get in contact with Jeff King: RameyKing.com or info@rameyking.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 184 - Would you QUIT YOUR JOB after buying 388 apartment units?

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Emily Cortright and Adam Roberts were corporate folks. They went to the right schools, (Ohio State and Penn State) lived near the ocean in southern California, and both worked for the right company (General Electric- Aviation); everything was great-UNTIL…GE sold their division and they were going to get downsized or transferred. They began to look for additional income options to support their lifestyle. They attended an educational class on real estate investing. After spending a weekend in the class… it was an epiphany moment- a change of mindset. They wanted to become investors. In the podcast, Emily and Adam take us on the journey from a corporate wage employee to an apartment investor. They show us how they educated themselves on apartment investing and teamed up with an experienced investor to buy two large buildings in Texas.
To contact Adam & Emily: emilycortright@kw.com or adam@aehomebuyers.com
Visit their website at: AEMULTIFAMILY.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, can you define what KEY PRINCIPAL is?

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Michael discusses and defines the term: KEY PRINCIPAL and how it applies to commercial real estate lending. The lender makes the loan to the Borrower. The Borrower is not typically an individual; but typically a limited partnership. Generally, where the Borrower is a limited partnership, the general partners are the managers of the Partnership. Thus, individuals general partners are potential Key Principals. For any general partner of the Borrower which is an entity, the Lender must identify as Key Principals those individuals who control that general partner. Key Principals usually have control of the Borrower and a fiduciary responsibility to the limited partners. However, where either a managing general partner or group managing general partners have been authorized in the Borrower's Limited Partnership Agreement to manage the partnership without participation from the other partners, then, the Lender must identify as Key Principals only those individuals managing general partners, or if a managing general partner is an entity, those individuals who control that managing entity individual general partners and the principals of non-managing entity general partners.