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

Berkadia real estate brokers, Will Jarnagin and Michael Ware, have been selling apartments for over 15 years. They have a depth of knowledge to help you. Will gives us an insight on the Value Add apartment market in Dallas. He breaks the sources of capital into two categories: 1) purchases UNDER-$25 million 2) OVER- $25 million. Will tells us that there is more activity and more capital available...

Bill Mara & Pat Poling have been business partners for over 30 years. These "old real estate guys," operated a multi-billion dollar institutional real estate portfolio for about a dozen years and then made the move into large apartment investing. They saw the opportunity to invest into value-add & work force multifamily and wanted to have individual partners instead of institutional investors. Bef...

Michael discusses real tenant occupancy challenges that will happen if you do not review tenant files during initial acquisition due diligence.

What's WORKING or NOT WORKING…in the capital markets. Old Capital commercial loan officers-James Eng, Dave Walls and John Brickson discuss what is happening in apartment lending. Paul Peebles relays an important story about the possible financial impact of the "NEW" SOCIAL SECURITY ADMINISTRATION's- NO MATCH letter verifying authenticity of your employee's social security number. This could be cha...

It is all about "execution certainty." This means your banker/broker must be your advocate in closing your apartment loan. Michael discusses some of the reasons on why you should consider using a commercial mortgage broker in your apartment transaction.

Beware of internet scammers when it comes to raising money for apartment investing. In the first part of the podcast, Paul discusses a real problem that recently occurred to one of his borrower. The sponsor's email address and database were hacked. The scammers sent out emails to the borrower's investor database asking for $250,000 for additional rehab on an apartment building owned by the borrowe...

Michael explains the reality of investing in apartments today and what you can expect in the future. Investment expectations for investors have changed in the last few years. "Longer and Lower," are the general themes of todays apartment investing market. Longer investing hold times with a lower rate of return can be expected.

Tauheed Saddiqui spent years working for banks and hedge funds. He would spend days on the road raising money from institutional investors. He loved it; but traveling was killing him and hurting his young family and wife. He needed to make a change and decided that real estate was going to be his new "9-5" job. He found that Wall Street was "advanced calculus," and Real Estate was not even "algebr...

Greg Willett is the Chief Economist for RealPage. He is the nations top apartment economist that bankers, general partners and investors listen to. Here are some of his thoughts: The U.S. apartment rents climbed 3.2 percent on an annual basis as of the first quarter of 2019. Annual rent growth has topped the 3 percent mark for six consecutive months, accelerating from a pace that had hovered aroun...

JC Castillo owns several large apartment buildings. Because JC is a disciplined real estate investor, it's been almost two years between his last deal he closed on and his next new deal. Two years? Wow! JC and his business partner Eric Hardy underwrote close to 100 purchase opportunities during that time. They knew exactly what they were looking for and couldn't find the right location or demograp...

Michael gives general partners tips on what limited partners need to make an investing decision.

Every year, Warren Buffett, writes his Berkshire Hathaway shareholders a letter. This eagerly anticipated letter from the 'Oracle from Omaha' gives rich insights, from the greatest investor, on what has happen in the last 12 months for Berkshire and what he sees on the horizon for their owned businesses. Everyone (investors and non-investors) can learn life lessons from his common sense approach t...

Real estate is easy; people can be hard. In apartment syndications, general partners need equity. That equity comes from limited partners. Not all limited partners are going to be easy to work with AFTER you close. Setting the correct investment expectations with the limited partners at the beginning of the transaction is very important. Michael also discusses how he has dealt with a challenging i...

An asset manager oversees the property on behalf of the investors. They report any financial or physical changes (good or bad) to the general partner. They help in managing a solution. When you own a small property (10-30 units) you are the ASSET MANAGER…. When you purchase a larger property or own more apartment communities, you may need to hire an asset manager. Remember, your job, as a general...

Cost segregation identifies building costs that would typically be depreciated over a 27.5 period and reclassifies them to permit a shorter, accelerated method of depreciation for certain building costs. Your apartment building is made up of thousands, maybe millions of parts. Flooring, cabinets, lighting, stoves are examples of items that can have different and shorter depreciation schedules. A c...

Independence is leaving the commercial real estate business. Listing agents are being hired by commercial apartment lenders. Yes…they now work for the lender! Gone are the independent real estate agents that represented the seller only. Today, listing agents have two bosses, 1) the apartment seller/owner and 2) the apartment mortgage company they are employed with. How do you serve two masters? Th...

Michael discusses what he reads on a daily basis and what helps him understand the big picture in apartment investing. If you come across interesting and supportive investing articles; share some of those articles with your investors. Michael, uses the example of Apple adding thousands of jobs in the same submarket of an apartment building that he owns. He also makes comments after the article on...

Justin Martinez and Matt Picheny are business partners in a 132 unit, two property portfolio in Lawrence, Kansas. Justin lives in Dallas, and Matt lives in Boston, we discuss how they found this opportunity near the University of Kansas. Success in real estate just doesn't happen overnight. You must take action! Many new investors go to real estate conferences to get educated and networked with li...

ASKING and GETTING are two different things when dealing with a seller. Michael explains what critical financial and physical information you must ask the seller to produce before your earnest money is at risk. Make sure you download Michael's "DUE DILIGENCE CHECKLIST" at the Old Capital Podcast website at OldCapitalPodcast.com. This CHECKLIST gives you the best breakdown of items you need to revi...

CoStar Group's David Kahn illuminates the "big picture" behind apartment investing in Texas. Before you invest, you need to know some of the basics: What can you expect in annual rent appreciation? How are occupancies on B & C apartment properties? Where are the new jobs being created? What are those jobs paying employees? What can you expect with cap rates in the future? What location should we i...

Shane Thomas and Prashant Satoskar did not know each other 2 years ago. Shane and Prashant met at an apartment educational/mentoring group meeting. They immediately recognized that by working together it would make their investing partnership stronger. Both guys brought in strengths to the team. Today, they own 3 large apartment buildings. To go bigger (more units) and go faster (shorter time fram...

Apartment REIT's (REAL ESTATE INVESTMENT TRUSTS) own thousands of apartment units throughout the country. They own all different types of apartments; from brand new buildings in downtown urban areas to older properties in the suburban markets. These apartment managers and executives get together once a year to discuss the latest insights and market intelligence in apartment ownership. The 2018 NAR...

Saturday, March 30   7.30a - Noon‬ ‪Southern Methodist University- Dedman Center  Dallas‬ ‪Hoops for Homelessness is a 3 on 3 half court basketball tournament hosted by Old Capital in order to raise money and awareness for the charity organization City House.‬ ‪City House is dedicated to providing homeless children and teens in North Texas with emergency shelter and transitional residential servic...

Your seller may require you to prove that you are a serious buyer by demanding a large amount of initial earnest money up front. This money could be at risk, IF you do not perform. The seller wants to assured that you won't re-trade them during the sales process. Michael explains some of the paths he uses to mitigate that possible risk.

Five years ago, Kevin Chalmers managed a team of engineers at a large hi-tech company. As a salaried employee, he was working 60 hours a week and getting paid for 40. He worked and saved and then worked and saved, a little more. He was getting ahead but was getting taxed pretty hard on his personal income and was looking for a better way. A work friend gave him the name of a real estate education...