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

My father would always say to me…Paul, there is a right way and the wrong way of doing things. Unfortunately, sometimes I would do the wrong thing and I would have to learn from my mistakes…the hard way. In this podcast, as you know…we try to discuss the right way and the wrong way of investing in and operating apartments…so you don't have to learn the hard way. We all have some degree of COMMON K...

Net Operating Income is the key metric in the multifamily world for investing and financing. The two main components are operating income and operating expenses. Mike breaks down some line items on the operating statements and tells you what you need to look for.

Paul Grimme is originally from Nebraska. After 28 years in the hi-tech industry he retired in 2016. Paul explains what lead him to investing and buying apartments. Paul had not gone the typical route of investing in single family homes but he did passively invested in five multifamily partnership opportunities with over 1000 doors. On his first large real estate transaction, Paul bought a fracture...

Typically on a capital raise you want to have a pre-existing relationship with your potential investor. The number one question that you must answer for the investor is A) How are they going to get their money back; B) What is the timeline going to be. Also, make sure that your debt lines up with a similar maturity as your investment strategy. Originating a new short term loan on a long term inves...

Mike Spotts just closed on a stabilized 94 unit apartment building. Mike grew up in Plano and attended Texas State University. He was in the high technology business and wanted to transition into real estate. Mike started buying duplexes and single family homes. Mike was equity rich with a 13 homes, but was liquidity poor. He decided to sell his homes and raise liquidity to buy apartments.  Mike i...

Michael uses his DUE DILIGENCE checklist to help him request documents from the seller. Everything is written out and are standard items for the seller to deliver. Make sure that you get a copy of this 'wish-list' at the OldCapitalPodcast.com website.

Kenny purchased his first out-of-state property in 2014. Kenny initially started buying apartments in Texas and then he bought in Colorado, Oklahoma and Ohio. Kenny's philosophy is have "real estate and will travel." He likes to buy in landlord friendly states that contain diverse economic drivers for growth, low unemployment, and historical population growth. Kenny explains the challenges of livi...

Michael explains the upside and the downsides of either partnering with a laundry vendor or owning your own machines. Michael also talks about increasing your NOI with other non-rental income line items.

The Old Dawg chats with The Big Dog (Michael Becker)  Bill Manassero with the Old Dawg REI Network Podcast explores why Michael Becker has a track record unlike few others.  In less than 4 years, Mike has acquired over 4,000 units.  That's right!  4,000 units in less than 4 years!  In this very special podcast, Mike will be sharing some of his insider secrets on how he got there so fast.  In his i...

What kills a transaction right off the bat? Michael only buys in 'specific' areas and will not compromise on the asset location or quality. Even though it might be tempting…don't buy in the 'hood. Michael's investing advice is that you must define the submarket that you want to make a position in. Michael describes what the buying environment is like in Dallas today.

Bob DeLong was concerned about his retirement and was looking for a solution. He found that investing in apartments could create passive income. He now invests in apartments in central Texas. He is a managing member and a passive investor in several hundred apartment units. Bob believes that the Austin 'Class C' apartment market is incredible or insane. Demand outstrips supply…rents are going up a...

Smaller buildings can typically be more challenging to staff and then push payroll expenses over less units. Owning apartments is a scaleable business. Mike explains some of the rules of thumb on how many units you need to own to hire a manager and maintenance person and some of the solutions that are necessary to make money on your investment.

Friends for over 17 years; Boris, Oshi, Leonid & Albert currently live in Northern California and now own 200 apartment units in Dallas, Texas. How do hardware designers that live over 1700 miles away, find, own and operate apartment buildings? Boris chats with James on how they found their first 55-unit apartment property and how they managed a $300,000 rehab project from a long distance. After t...

It can be done. Mike explains the additional complexity and underwriting rules for foreign nationals to finance apartments in the US.

Thomas & Timothy Black are brothers and principals at Napali Capital, LLC.   Napali Capital acquires and operates Class B & C apartments. Tim recently retired as the chief operating officer for GREAT WOLF LODGE corporation.  Tom is currently an EMERGENCY ROOM DOCTOR that also helps physicians and other high-income professional overcome career crisis by teaching them how to expand their personal ne...

A unique feature with a Fannie Mae loan is the ability to assume the existing loan from the seller and then apply for a new subordinated loan to get max leverage. Mike explains the additional benefits and needed structure of applying for a Fannie Mae assumption & supplemental loan.

Greg Willett- Chief Economist  RealPage RealPage is the leading provider of on-demand software solutions for the rental housing industry. RealPage supplies property management software to over 12,000 ownership groups that own or control over 30,000,000 residence units. They are the Facebook or Google in their industry. RealPage collects a tremendous amount of data on trends within rental housing t...

Always have a physical due diligence report done BEFORE you buy the property. Make sure that you understand the rental submarket and the tenant demographics. Rely upon the information from a qualified property management company that operates in the same submarket. Don't over improve the asset too much for the submarket; if the market doesn't recognize the improvement (pay you more rent) you could...

Chris Deuillett and Danny Baker Chris has been selling older (Class B & C) apartments in the Dallas market for 17 years. Chris comes from a family of real estate professionals; his two brothers and father are in the business. Danny is originally from Wisconsin and has been selling newer (Class A, A-, B+) apartments in the Dallas market for 7 years. CBRE is a Fortune 500 company that represents buy...

What happens first; raise the investors money or find a building? Or is it vice versa? Before you do either, you must understand what it takes to be the managing member (responsible party) to operate an apartment building. Michael explains how a deal syndication works and being transparent with your investing partners.

In less than 10 months, Venkat and Ramana, purchased 3 apartment buildings in 3 different states with over 500 units, for $27 million. Now, they are hooked on buying apartments. Venkat is the IT Services business. Initially, he started buying single family homes. From 2007-2014, Venkat had purchased over 20 homes. He maxed out his ability to get long term Fannie Mae home loans and wanted to learn...

70% of the lending decision is based on the building operations (historical and future) and 30% is based on the sponsor (liquidity, net worth, past ownership experience of apartments) Listen to Michael explain what's important in apartment financing.

John Griggs, with Presidium Group in Dallas, owns over 10,000 apartment units. He co-founded the company in 2002. John and his business partner Cross Moceri, were unhappy lawyers in California when they got bit by the real estate bug. They first started buying, rehabbing, and selling single family homes and four-plex's in California. They wanted to expand, and after looking into several markets th...

A professional property management company can make or break your profitability and overall success to your apartment investment. Find a management group you can trust. A property management company should treat their clients money as their own.  Craig Lashley & Todd Parks are with SIMC Property Management. SIMC is a third party property management company that manages over 7500 apartment units. S...