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ASK MIKE MONDAYS - I want to a buy an apartment building. What do I look for in the numbers?

Michael explains to a potential apartment buyer on what is important in the operating statement. Do you look at the trailing 1, trailing 3, or trailing 12? What is important? Michael talks about the importance of analyzing the trend line of income and expenses.


Episode 146 - Could you learn something from a guy that manages over 19,000 apartment units?

Ryan Wehner manages over 19,000 units in Texas and Oklahoma. His third-party property management company provides the day to day management of apartment properties. Ryan discusses the reasons to have a management company oversee your asset. Ryan then explores the state of the apartment market in annual rental growth and what to expect in the future. On the expense side, Ryan is seeing increased expenses in property taxes, insurance and employee costs. He gives an example on the benefit of...


ASK MIKE MONDAYS - Michael, I just scheduled an appointment with the listing agent to walk a multifamily property; what do I need to pay attention to?

After reviewing the initial underwriting and if you think it works for you and your investors…it becomes necessary to physically walk the property. Most listing agents require you to walk the property PRIOR to submitting a LETTER OF INTENT for purchase. The listing agent wants to make sure that you and your equity have had a chance to understand the physical needs of the property before they will consider LOI seriously. Michael discusses what you need to pay attention to when walking the...


Episode 145 - Execution Certainty: What to ask your commercial mortgage loan officer BEFORE you hire them.

Not all commercial loan officers are created equal. One size does not fit all. You need to have the best advocate for your lending transaction. In the podcast today we have another episode of “Coaching and Counseling with James Eng.” James provides you with 10 questions that you MUST ASK your commercial mortgage loan officer BEFORE you engage with them. Your money and reputation are at risk if you choose the wrong loan officer. Here are a few questions that you must ask: 1) What is your...


ASK MIKE MONDAYS - Can you unveil some common misconceptions when purchasing apartments? Should I consider owner financing? Should I send ‘I want to buy your apartment’ letters to the seller? Does that really work? Can you wholesale multifamily proper

Wow! When trying to buy an apartment building… don’t fall into some rabbit holes. Pursuing single family MARKETING strategies do not typically work when trying to FIND a multifamily property. Michael explores some common marketing fallacies of transitioning from SINGLE FAMILY to MULTIFAMILY.


Episode 144 - Get Smart - 3rd Quarter Loan Officer Roundtable

Your lender brings a huge amount of capital to your transaction. They are a critical member of your success team. You need to understand what’s important to the lender and how they will structure your loan. In today’s podcast, we sit down with a few team members of Old Capital and discuss what’s new in the capital markets and what you need to know. Items discussed: 1. Fannie Mae Pricing Waivers- for the last few years, Fannie has been generous in reducing their posted interest rates...


ASK MIKE MONDAYS - Mike, when considering at a possible apartment acquisition; what is the first thing you look at?

You may have to look at several apartment opportunities BEFORE you find the right one. The ability to underwrite a transaction quickly will help you make swift decisions on whether to pursue with additional analysis time or drop the deal. Mike discusses the specific documents the seller needs to provide you to analyze the transaction correctly.


Episode 143 - INDUSTRIAL WAREHOUSE INVESTING; a possible alternative to multifamily investing

Trying to acquire an apartment building today can be challenging in this hyper competitive market. Perhaps you need an alternative property type to consider. In today’s podcast we explore industrial warehouse investing. Tim Veler is an industrial warehouse sales & leasing associate with Transwestern in Dallas. He assists investors in buying industrial warehouse properties. Industrial warehouse tenants can be furniture manufactures, printers, import’ export distributors, fabricators,...


ASK MIKE MONDAYS - I am under contract and buying an apartment building. I’ve been contacted by the appraiser; what do I need to know and give them?

A lender needs to understand the value of the collateral. Even though you paid for the appraisal, the appraiser is hired and works for the bank. They will not discuss value with the buyer until after they have completed their final report. If you meet the appraiser at the property and you mention that you are going to do some specific rehab; the appraiser will more than likely add that into their report. So…be careful in speaking to the appraiser, if you haven’t confirmed those...


Episode 142 - Within 16 months, Ed Faukner went from ZERO UNITS to 54 UNITS

A few years ago, Ed Faukner bought a new house for his growing family to live in. The day after they moved in…his wife informed him that she HATED the house and wanted to move. Yikes! Instead of selling they rented it out. That was his first experience with owning rental real estate. He was terrified with having someone else live in their home. After a while, he got comfortable with owning rental real estate and bought a duplex. He eventually sold it and realized a large gain. He was...


ASK MIKE MONDAYS - Do I need a buyer’s broker when acquiring an apartment building?

Buyer brokers are not common in multifamily. If you are fairly new into apartment investing, you should have a buyer’s broker represent you. If you are a seasoned apartment buyer, buyer brokers are an extension of your team and will add value. They are out looking for specific transactions that meet your vision. As a general partner you should be focused on 1) raising new equity, 2) finding new transactions. Buyer brokers can assist you in finding the right transaction.


Episode 141 - Go BIGGER and FASTER with specific apartment education & mentoring. Brad Sumrok teaches us the value of having a mentor.

Brad Sumrok is the Apartment King. He is the 2012 National Apartment Association’s “Apartment Owner of the Year.” He owns thousands of apartment units, but his passion is teaching and mentoring apartment investors. This Carnegie Mellon graduate has helped hundreds of investors earn double digit returns on their apartment investment and retire early. Brad is an apartment mentor and educates students the ‘how’ in buying large apartment buildings. If you are transitioning from single family...


Episode 140 - Want to get started in buying apartments? Start attending live networking events!

Coaching and Counseling with James Eng. Today on the podcast, James discusses the importance of networking at LIVE APARTMENT investing & educational themed events. You want to accelerate your knowledge level? Start attending apartment investing conferences, local apartment investing Meetup’s, and join a apartment education/ mentoring group. If you are new and just getting into the Multifamily Business...you must expend the energy and go out and meet your future investing partners,...


Episode 139 - From corporate jobs to real estate investors; Bonnie & Kerry purchased over 700 units

Today we revisit with Bonnie & Kerry Staples. Bonnie & Kerry loved their corporate jobs. They were well respected within their companies, but knew they were building someone else’s dream and not working on their own. They were originally drawn to real estate through single family investing, but after seeing the bigger picture on scalability, they wanted to invest into apartments. They hired a mentor/educator to accelerate their specific knowledge of apartment investing. We originally...


ASK MIKE MONDAYS - 1) Mike, when buying a CLASS C apartment, what is the largest CAP X expenditures you can expect? 2) What are the biggest mistakes when buying older apartments?

Upfront physical due diligence is critical when purchasing any apartment building. Have your engineer/ general contractor review all components to the apartment. Not reviewing deficiencies with your electrical, plumbing and sewer, foundation and roof can be the iceberg that sinks the investor’s ship.


Episode 138 - New Construction - This family BUILT over 800 apartment units. Learn how they did it

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 the last few years. Today, the Patel’s build large 150-200 unit, Class A- apartments in...


ASK MIKE MONDAYS - 2 questions for Mike today: 1) How do you figure out how much you pay your investors? 2) It seems that most syndication structures use a 5-7 year sale...why not refinance and keep the property?

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.


Episode 137 - Coaching and Counseling: Answering the SELLERS questions correctly

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 their face by failing to pick the right buyer. But BEFORE a buyer is chosen, the seller needs...


ASK MIKE MONDAYS - Mike, I am doing some rental comp analysis. Every apartment comp I’m finding is different by- location, size, amenities and condition. How do you determine market rents for your property?

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.


Episode 136 - TOP PRODUCING D/FW agents share their insight into the apartment market.

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, etc.) positioned together is critical in winning a deal. It may not always be the highest...