Old Capital Real Estate Investing Podcast with Michael Becker & Paul Peebles

Neal Bawa is a thought leader in multifamily. This self described "data geek" owns and operates a large apartment portfolio. By using technology and optimization of data, Neal shares what he is doing to create higher rents and a better experience for his tenants. Have you heard of reputation management? How many STARS did your property get? Everyone rates services these days. Restaurants, dentists...

Start building your database of investors. One example is creating your own Apartment Investing MeetUp group in your community. MeetUp meetings are a great way to build your own investor tribe. Bring in guest speakers (contract attorney's, bankers, title folks, self directed IRA experts, property management companies) that can share their wisdom to your tribe. Its an excellent way to become a thou...

Lane Beene is with Pilot Properties and owns almost 700 apartment units. This recently retired Lt. Colonel graduated from the Air Force Academy and flew combat F16's for over 28 years. Less than 15 years, he started with one single family home and turned that into a large multi-million dollar apartment portfolio…all during the time he was serving in the military. He is direct. He is smart. You nee...

Get to know these guys. Jon Krebbs and Paul Yazbeck are with The Multifamily Group in Texas. They sell 'B & C" apartments in north and central Texas. Before creating their own regional brokerage firm, they were top brokers for a national commercial real estate firm. Today they have 9 sales brokers concentrating on apartment listings between $5-15 million. Jon and Paul chat about the state of the a...

Get out!! Really, Get Out there and meet people that will help you. Professional apartment brokers control the majority of the opportunities in your market. How do you meet them? Michael shares his knowledge on what you should do to meet these 'gate keepers' and how to build quality relationships.

Alex Clark has purchased 113 apartment units and loves being in charge of his own destiny. Recently, Alex quit his high technology job and now invests in multifamily full time. It just didn't happen overnight, Alex had a game plan. About 20 years ago and while in college, his car's transmission went out during afternoon rush hour traffic in Dallas. Unfortunately, he and his car were broke; very br...

Michael discusses a simple checklist to apartment investing success. Education is number one! Learn about what you're investing in. Mentoring and education programs are an excellent way to gain knowledge quickly. BUT…Listening to podcasts on apartment investing or joining apartment investing Meetup groups in your area can also help increase your awareness.

Lane Beene is with Pilot Properties and owns almost 700 apartment units. This recently retired Lt. Colonel graduated from the Air Force Academy and flew combat F16's for over 28 years. Less than 15 years, he started with one single family home and turned that into a large multi-million dollar apartment portfolio…all during the time he was serving in the military. He is direct. He is smart. You nee...

Michael explains that todays low rate environment can benefit many apartment buyers with lower debt costs, BUT will exponentially increase the yield maintenance prepayment penalty costs for sellers. Lower rates may mean more loan assumptions in the future to avoid the yield maintenance cost.

Lane Beene is with Pilot Properties and owns almost 700 apartment units. This recently retired Lt. Colonel graduated from the Air Force Academy and flew combat F16's for over 28 years. Less than 15 years, he started with one single family home and turned that into a large multi-million dollar apartment portfolio…all during the time he was serving in the military. He is direct. He is smart. You nee...

Michael owns over 5000 apartment units and he still uses an independent 3rd party property management company to oversee his portfolio. Michael discusses the reasons why he doesn't self manage. Also, Michael examines what an apartment ASSET MANAGER does for the partnership.

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...

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...

Mike discusses a large line item expense…property insurance. After property taxes and payroll, property insurance is an every increasing expense that sponsors must recognize sooner than later.

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 ar...

After you have spent over 90+ days in the acquisition process…its time for you to actually own and operated your building. Michael discusses a PRE- and POST- apartment takeover strategy. If you self-manage or have a third party management team; a transition plan is critical for your immediate success.

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 lif...

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...

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...

For various reasons, not all apartments will qualify for a Fannie Mae or Freddie Mac loan today. An example could be that current net operating income (NOI) versus sales price does not support a higher leveraged loan amount. Today, borrowers are seeking the right loan structure that can "bridge" them from point A to point B. Bridge loans may be the right financing strategy for value-add investors...

Michael discusses some recent economic information that Greg Willett from RealPage has shared with investors. Possible slowdown coming in 2020-2021 and the impact it will have on apartment leasing and ownership.

Today, Allan and Laurel Beazer passively own over 2000 apartment units. A few years ago, they got mad after their CPA told them they may have to work many more years to have a decent retirement. They found a better way. They joined an education & mentoring group that focused on multifamily investing. Listen to their journey on how they passively invested into various real estate partnerships and e...

Michael discusses the status of the capital markets that he is seeing as a deal sponsor. Today, to be rewarded with a lower interest rate, Agency lenders want to see energy or water savings by apartment owners and/or tenants. This year, Fannie Mae and Freddie Mac made a change that calls for borrowers using their green-lending programs to commit to saving 30% on their energy and water consumption,...

John Darrow is an underwriter with Red Capital. He specializes in SMALL BALANCE- AGENCY loans under $7 million for NEW apartment buyers. In some areas of the nation…they will lend up to 80% leverage. He explains the differences between NON RECOURSE apartment lenders Fannie Mae and Freddie Mac. These two AGENCY lenders are similar, BUT they have important differences that YOU need to understand. RE...

Today, many sellers and listing agents require buyers to put a substantial amount of NON REFUNDABLE earnest money up front…BEFORE they do certain due diligence analysis. As you can imagine, the seller wants to make sure you are financially committed to the transaction without the risk of a future re-trade. Michael explains how he gets comfortable on putting significant hard earnest money upfront o...