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

Can't find the RIGHT apartment building to buy today? Did you every consider BUILDING a new apartment? Vino & Mangesh Patel build apartments in Texas. Listen to this father and son team explain how they went from owning hotels in the 1980's, then acquiring and rehabbing value add multifamily properties in the late 1990's and 2000's and now, BUILD ground-up new construction apartment structures for...

Structuring the right payout back to investors is critically important. Mike describes what waterfall criteria he uses to attract capital. Mike then discusses different exit strategies that many syndication investors can normally expect. It's hard to "keep the band together" for an extended period; so most syndicator's use the 5-7 year sale timeframe.

Having the highest offer price doesn't always get you the deal. The seller needs "execution certainty". Can the BUYER actually close on the proposed sales price? That's the sellers worst fear that a buyer cannot close or will re-trade the original terms of the sale transaction. Yikes!! The seller needs to pick the right buyer and take the RISK OUT. The seller doesn't want to end up with egg on the...

Mike breaks down his assessment on comparing rental comps within a submarket. Becoming a student of the different apartment markets in your buying areas will help.

To be competitive in apartment investing you need great information. The top producing agents at ARA- DALLAS have great information on what is happening around the state. They discuss the current state of the apartment market, amenity trends and how to win a deal. Being well prepared in presenting an offer and having your team (Key Principal's, real estate attorney, MF general contractor, lender,...

Many apartments may have retail or office space included within an apartment structure. A small grocery store, a coffee shop, or a nail salon can be the typical retail store you may find attached to the apartment building. Mike explains what to look for when purchasing a mix-use property.

Bhuvan & Pratima Sharma needed to make a change….a huge change. Unfortunately, a few years ago, most of Bhuvans' & Pratimas' retirement was wiped out when the company that they both worked for… filed for bankruptcy. Yikes!! They had to re-group and figure out what to do next. They concluded that buying a hard asset through real estate investing was the best idea. In less than 5 years and through a...

To promote affordable housing, some older properties may have an income restricted LURA. A LURA is a LAND USE RESTRICTION AGREEMENT. It runs with the deed. This recorded regulatory agreement may restrict the amount of rent you can charge a tenant, based on the tenant's income. If you rehab a property and are expecting to increase rents to justify the cost…a LURA may prevent you from being able to...

Friends become partners; finding the right partner is critical to your success when buying apartments. If you have a full time job and life commitments, but still want to own apartments… you may need to find a complementary operating partner. Today we chat with Kristalee Thomas and Larry Troy. Kristalee and Larry are great partners and friends. Kristalee and her husband David have full time jobs a...

Michael shares a success story of an investor that sold a NEGATIVE CASH FLOWING four-plex in California and replaced it with a large apartment building in Texas that produces a LARGE CASH FLOW stream. Can you do that?

On your operating statement, utility costs -paid by the landlord- can be a HUGE expense. Utilities can include water, electric, gas, sewer, and garbage. On the podcast today is Katie Anderson with Save Water Co. Katie and her company help to reduce the amount of water that is consumed on the property with low flow toilets, leak detection, aerators, and shower heads. Water is money. The ever increa...

Michael discusses the mechanics of pushing over a letter of intent to the seller and how to get that offer accepted.

This was the title to the recent Jake & Geno Podcast that featured the "Michael Becker" story. We love that story and wanted to hear it again. Michael went from a lonely, top producing commercial real estate banker to the popular, apartment owner that we all know and love today. After 15 years in banking, Michael went from a "loaner to an owner." Are you an engineer, doctor, or attorney and tired...

IF you are a passive investor you want to review a realistic PROFORMA before you invest. Michael discusses line items on the operating statement such as rental rate growth, loss to lease, property tax step-up costs, and future labor costs. Are the assumptions from the SPONSOR too aggressive?

The Old Capital Lending team discusses the current apartment lending environment and what you should be aware of when structuring your transaction. James Eng shares his article on "The 7 Things Buyers Need to Do to WIN DEALS." http://www.oldcapitalpodcast.com/blog/ To Contact a Loan Officer at Old Capital: James Eng: JENG@oldcapitallending.com Richardo Hinojosa: RHINOJOSA@oldcapitallending.com Han...

Michael gives specific examples on what to consider when assessing a property that's in a little tougher area of town.

Lane Beene buys value added properties. He seeks distressed apartment assets in nice and mature neighborhoods. Many investors search for these 'holy grail' of opportunities. Many seek, but few find. Recently, Lane purchased three separate apartment buildings that needed repositioning. He shares his story on how he found these apartments and the amount of rehab that was necessary to reward him and...

Michael discusses some basic real estate economics that he is observing in the apartment marketplace.

JC Castillo has been investing in apartments for 12 years. He lives in Northern California and owns and operates properties over 1800 miles away. How can you find, purchase and operate properties from a distance? JC has some inside tips on how to build relationships with listing agents so you get selected in best and final and then have agents bring you the elusive "off market" deal. JC is a relat...

Nick Fluellen and Bard Hoover are the top apartment brokers in the Marcus & Millichap office in Dallas. Their team did more transactions in 2017 than any other office in Texas. These top producing apartment brokers discuss the positive 'tea-leaves' that they continue to see in Dallas commercial real estate. Dallas investors continue to enjoy the fundamentals of population growth, rental affordabil...

Today, many apartment sellers are giving apartment buyers two pricing choices. Many sellers have large prepayment penalties on their debt; so they give new buyers two prices. One, if they assume the sellers debt the cost will be lower. Two, if they force the seller to payoff their debt and occur a large prepayment penalty the cost will be significantly higher. Listen to Michael discuss the options...

Bryon Hammer is a contracts attorney. He advises buyers on how to structure real estate purchase sale agreements to buy apartments. Before you sign a sales contract; you will want to visit with an attorney that works with real estate contracts every day to advise you on what language needs to be included. Bryon discusses various topics in the podcast including: title commitment and review, earnest...

All investors must ask their DEAL SPONSOR at the beginning - How and when, am I going to get my money back? Michael explains that matching your exit strategy to your debt is very important. Also, you must understand how large prepayment penalties on apartment loans play into your decision to sell.

Cory and Candice Muldrow are unique millennials. They focused on the goal of owning real estate and now are achieving great results. Not all millennials will sacrifice today to have a better life for tomorrow. To contact Cory or Candace: mgroupcapital.com To receive our FREE 15 page WHITE PAPER REPORT on the 2018 FUNDAMENTALS OF MULTIFAMILY FINANCING 101 and to learn more about upcoming events at...

Both Fannie Mae and Freddie Mac need someone or a few folks, within the investment group, to become the fiduciary on behalf of the partnership. They typically want a natural person to sign a "guaranty" between the lender and the partnership for a non-recourse loan. Michael explains some of the benefits and concerns if you sign on behalf of the borrowing partnership.