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

A timely question; Michael and his team are currently assuming a FHA loan. FHA is a federally guaranteed program under the government's Department of Housing and Urban Development (HUD). FHA Loans can be used for the purchase/refinance as well as the construction/ substantial rehabilitation of multifamily or healthcare properties. Loans are non-recourse (except standard carve-outs) and rates are very competitive with 35-40 year fixed terms and amortizations. FHA are available nationwide and are available for any market (primary, secondary, tertiary). Michael describes some of the benefits and challenges with FHA financing of large apartment buildings.

Wow! How would you like to work on two separate purchase transactions at the same time? These investing partners found themselves with two accepted LOI's. They could have dropped one and focused on the other one…but they and their investors decided to move forward with these two purchases. Menon and Ajai are investing partners. Menon lives in Northern California and Ajai lives in Dallas. After submitting numerous LOI's, their offers on Magnolia Woods (240 units) in Atlanta, Georgia and The Carlton Apartments (108 units) in Fort Worth, Texas were accepted. Menon explains on why he made the decision to invest in apartment education and mentoring BEFORE he invested in apartments. Ajai, expounds on some of the challenges they found on takeover of both properties. To contact Ramakrishna Menon : [email protected] To contact Ajai Sharma: [email protected] To contact James Eng: [email protected] To receive our FREE 15 page WHITE PAPER REPORT on the 2017 FUNDAMENTALS OF MULTIFAMILY FINANCING 101 and to learn more about upcoming events at Old Capital Speaker Series please visit us at OldCapitalPodcast.com Are you interested in learning more about how Multifamily Syndications work? Please visit www.spiadvisory.com to learn about Michael's Real Estate Syndication business with SPI Advisory LLC.

Typically, your lender brings in 75-80% of the capital needed to purchase an apartment property. Obviously the lender is very important to helping you complete the transaction. A lender term sheet gives you a rough indication of what rates and leverage could be. Michael discusses the basics of a lender term sheet. Paul also discusses the challenges of the GREEN PROGRAM in the future. FIND OUT-UP FRONT- if the seller has already implemented a utility savings program on the property. The GREEN PROGRAM rewards borrowers for investing in smart energy and water-saving improvements for a refinance, acquisition, or supplemental financing with a lower interest rate and more loan dollars. Something to be aware of: If the seller had previously completed the work that will save 20% in water or energy costs for either the landlord or the tenant; the new buyer may be challenged to find additional utility savings. If no additional savings are found by the energy audit, you will not get the interest rate savings or additional loan dollars. Yikes!

Craig Brown is an attorney and expert on educating clients on the benefits and risks of a TAX DEFERRED EXCHANGE. He has closed thousands of transactions and will give you specific advice for your 1031 exchange. Important Considerations for an Exchange: A) Exchanges must be completed within strict time limits. The Exchanger has 45 days from the date the relinquished property sale closes to identify potential replacement properties. The purchase of replacement property must be completed within 180 days after closing of the sale of the relinquished property. B) Identification of potential replacement properties must be specific and unambiguous, in writing, signed by the Exchanger, and delivered to a Qualified Intermediary. The list of identified potential replacement properties cannot be changed after the 45th day; the Exchanger must acquire from the list of identified properties or the exchange will fail. C) To avoid payment of capital gain taxes, the Exchanger should follow three general rules; 1) purchase a replacement property with a value equal to or greater than the value of the relinquished property, 2) reinvest all of the exchange equity into the replacement property, and 3) obtain the same of greater debt on the replacement property as on the relinquished property. The bottom line: You need to know a 1031-Tax Deferred Exchange specialist. To contact Craig Brown: [email protected] To contact James Eng: [email protected] To receive our FREE 15 page WHITE PAPER REPORT on the 2017 FUNDAMENTALS OF MULTIFAMILY FINANCING 101 and to learn more about upcoming events at Old Capital Speaker Series please visit us at OldCapitalPodcast.com Are you interested in learning more about how Multifamily Syndications work? Please visit www.spiadvisory.com to learn about Michael's Real Estate Syndication business with SPI Advisory LLC.

Michael discusses his latest apartment sale and WHY HE picked this BUYER.

Scott Lamontagne and Zar Haro are with JLL in Austin/ San Antonio and sell a bunch of apartments in Central Texas. Scott is the managing director for the 11 person team based in Austin. Austin has been one of the hottest growth markets in the country. With a 20-34 year old population approaching 500,000, nearly a quarter of Austin's population consists of Millennials, which is tops among the largest U.S. markets. Business costs are cheaper than Silicon Valley, so Austin has been the recipient of many HQ relocating to Central Texas. (It doesn't hurt that Chip and Joanne Gaines, from the show Fixer Upper, have convinced many families to relocate to Waco in Central Texas) Scott & Zar discuss what apartment investors should understand about buying properties in Central Texas. To contact Scott Lamontagne: [email protected] To contact Zar Haro: [email protected] To contact Dave Walls: [email protected] To receive our FREE 15 page WHITE PAPER REPORT on the 2017 FUNDAMENTALS OF MULTIFAMILY FINANCING 101 and to learn more about upcoming events at Old Capital Speaker Series please visit us at OldCapitalPodcast.com Are you interested in learning more about how Multifamily Syndications work? Please visit www.spiadvisory.com to learn about Michael's Real Estate Syndication business with SPI Advisory LLC.

Michael Becker hosted the TOP LISTING BROKERS panel at the Old Capital Multifamily Conference in Dallas. These 5 agents and their respective companies do almost 70% of the total sales in Dallas-Fort Worth. Wow! We have them all together. You will get an inside perspective on how apartment transactions are done in north Texas. Listen to questions and answers from the audience.

Tom Wilkinson is the 'dean' of apartment sales in Houston, Texas. He has been in apartment brokerage for over 25 years. He sells over 10% of all the B & C apartments in Houston; with most being OFF MARKET. Tom discusses what impact that Hurricane Harvey has caused on apartment owners. How will this natural disaster effect current and future investors? How much higher will insurance premiums rise? What much higher will labor costs go up? Will you be able to get buildings materials? What's the timing to bring these down apartments back online? Will there be opportunities for investors in the near future? Listen to what Tom discusses. Great article on impact of Hurricane on Houston apartments: https://www.realpage.com/mpf-research/many-as-43000-apartments-appear-off-line-metro-houston/ Contact Tom Wilkinson: [email protected] www.ketent.com Contact Hans Box: [email protected] To receive our FREE 15 page WHITE PAPER REPORT on the 2017 FUNDAMENTALS OF MULTIFAMILY FINANCING 101 and to learn more about upcoming events at Old Capital Speaker Series please visit us at OldCapitalPodcast.com Are you interested in learning more about how Multifamily Syndications work? Please visit www.spiadvisory.com to learn about Michael's Real Estate Syndication business with SPI Advisory LLC.

Michael Becker hosted the TOP LISTING BROKERS panel at the Old Capital Multifamily Conference in Dallas. These 5 agents and their respective companies do almost 70% of the total sales in Dallas-Fort Worth. Wow! You will get an inside perspective on how apartment transactions are done in north Texas.

Gene Trowbridge is an attorney that specializes in helping clients raise investor money through syndication. If you are really rich, you can buy apartments all by yourself. But, for most of us, we must pool our money together called a syndication. The government has specific rules that syndicators must follow. The sponsor or syndicator is the person (or group of people) who sets up the investment structure, brings together the pool of investors, oversees and manages the investment, and ultimately through their efforts generates a profit for the investors. Gene describes some of the gotchas that syndicators must know before they start to raise investors money. You will want to take notes in this high content podcast. To contact Gene Trowbridge: crowdfundinglawyers.net To contact James Eng: [email protected] To receive our FREE 15 page WHITE PAPER REPORT on the 2017 FUNDAMENTALS OF MULTIFAMILY FINANCING 101 and to learn more about upcoming events at Old Capital Speaker Series please visit us at OldCapitalPodcast.com Are you interested in learning more about how Multifamily Syndications work? Please visit www.spiadvisory.com to learn about Michael's Real Estate Syndication business with SPI Advisory LLC.

Michael explains some of the obstacles that may trip you up when applying for a commercial real estate loan. You have too much at risk- financial & reputation risk, not to understand some of the hurdles you may encounter.

Growing up in Australia, his parents instilled the value of owning real estate. About two years, he made the decision to get out of the RAT RACE and began to acquire apartments. He currently lives in central Texas. He and his partners own apartment buildings in California, Arizona and Texas. Selvam purchased a FRACTURED CONDO in Arizona and explains the challenges on owning and financing a condo that you do not own 100% of all the units. Afterwards, Selvam shares his experience on purchasing a large apartment building in San Marcos, Texas. San Marcos has tremendous growth and its 30 minutes south of Austin. Selvam explains on how he found and the closed on the transaction. To contact Selvam Sabapathy: [email protected] To contact Hans Box: [email protected] To receive our FREE 15 page WHITE PAPER REPORT on the 2017 FUNDAMENTALS OF MULTIFAMILY FINANCING 101 and to learn more about upcoming events at Old Capital Speaker Series please visit us at OldCapitalPodcast.com Are you interested in learning more about how Multifamily Syndications work? Please visit www.spiadvisory.com to learn about Michael's Real Estate Syndication business with SPI Advisory LLC.

In today's highly competitive apartment sales market, you must be a good negotiator to get what you want. Michael explains some sticking points that he has come across in the past.

John Bollinger wants to own an empire of apartment units….by 2022…he wants 10,000 units. He started several years ago buying a duplex. He lived on one-side and rented the other side. He got a little taste of being a landlord. He liked having a small "cash register" or a tenant helping him achieve financial independence. Over the next few years, he bought several duplexes and four-plexes and then put together his own repair crew to rehab his properties. He then bought a 25 unit apartment building in the small town of Dilley, Texas. It was the only apartment building in the small town of Dilley. He liked the real estate investing business and wanted to make a career out of it. He reduced his hours at work and increased his hours into "his multifamily business." Today, John owns 174 units. His current portfolio is two assets -110 units in Victoria and 64 units in Kingsville, Texas. He manages his own properties. Listen on how he acquired these assets and what he wants to pursue in the future. To contact John Bollinger: [email protected] To contact Dave Walls: [email protected] To receive our FREE 15 page WHITE PAPER REPORT on the 2017 FUNDAMENTALS OF MULTIFAMILY FINANCING 101 and to learn more about upcoming events at Old Capital Speaker Series please visit us at OldCapitalPodcast.com Are you interested in learning more about how Multifamily Syndications work? Please visit www.spiadvisory.com to learn about Michael's Real Estate Syndication business with SPI Advisory LLC.

Mike discusses some of the weaknesses and the strengths of the different property types (A, B, & C) in multifamily.

Anna Simpson is determined to build a portfolio of apartments for her and her family. This gal is a dynamo! Originally from Russia, she has been in the Texas for the last 13 years. She got the real estate investment bug from her father. She had a vision on what she wanted to do (own large multifamily assets) and NOW she is executing on that vision. She is COMMITTED to making it a success. Over the last few years she has been 'in training' to buy an apartment building. She educated herself with SPECIFIC EDUCATION on apartment investing from an apartment mentoring & education group. She made a few passive investments in other managing member's apartment transactions…and now she was ready to buy her own deal. She was ready to lead. Anna tells the story about how she found her 70 unit apartment building in Arlington, Texas that came with some challenges and some opportunities. To contact Anna Simpson: [email protected] or www.SimpsonMultifamily.com To receive our FREE 15 page WHITE PAPER REPORT on the 2017 FUNDAMENTALS OF MULTIFAMILY FINANCING 101 and to learn more about upcoming events at Old Capital Speaker Series please visit us at OldCapitalPodcast.com Are you interested in learning more about how Multifamily Syndications work? Please visit www.spiadvisory.com to learn about Michael's Real Estate Syndication business with SPI Advisory LLC.

Mike initially focuses on high level national apartment market data and then general economy status and then shifts to local and regional apartment market information. He breaks his data sources into two different categories. Pay: CoStar.com, yardimatrix.com, alndata.com/market-reviews/, axiometrics.com, realpage.com/yieldstar/mpf-apartment-market-updates-trends-webcasts/ Free: bisnow.com, multifamilyexecutive.com/business-finance/business-trends/ nreionline.com, connect.media, francemediainc.com

Ken & Wind Yue own hundreds of apartment units. They could not have purchased so many units without the help of happy equity partners. How do you make your equity partners happy? You have to be transparent. How you treat your partner AFTER you have taken their money is critical for your future success. Ken & Wind do an excellent job in treating their 'investing partners' with respect. Problem partnerships can be challenged by poor communication from the managing member to their limited partners. Ken & Wind explain how they keep current and future equity partners engaged and happy with their apartment investments. To contact Ken or Wind Yue: [email protected] To contact James Eng: [email protected] WeChat is found at www.wechat.com/en/ To receive our FREE 15 page WHITE PAPER REPORT on the 2017 FUNDAMENTALS OF MULTIFAMILY FINANCING 101 and to learn more about upcoming events at Old Capital Speaker Series please visit us at OldCapitalPodcast.com Are you interested in learning more about how Multifamily Syndications work? Please visit www.spiadvisory.com to learn about Michael's Real Estate Syndication business with SPI Advisory LLC.

Mike gives his insight on what's going on in multifamily in DFW. He also discusses the impact of higher labor costs for apartment rehabs due to Hurricane Harvey in south Texas.

Mit Scott and Greg Ford are business partners in the ownership of a large apartment building in Irving, Texas. They originally started with purchasing single family homes, then became passive investors in other people's transactions and now own a large apartment building- while still maintaining their full time jobs. Ricardo asked Mit: What appealed to you most about multifamily in comparison to single family? Mit thought that you could create 'greater value' in a multifamily acquisition than in a single family purchase. Your house is going to be worth relatively the same as your neighbor's home regardless of the finish out or appliances. Your home value will be based on other closed sales of similar homes in the submarket. In the multifamily arena, the value of that business is based on how much income you can generate. The higher the Net Operating Income (NOI) the greater the value you will create on your apartment investment. Mit gives an example on how they created additional value by giving tenants the opportunity to rent parking spaces close to their units. The impact from this marginal parking income has an unbelievable impact on over-all value. Single family ownership is not scalable and apartment ownership is. Greg gives us a real example on how a reverse-1031 exchange works. To contact: Mit Scott or Greg Ford [email protected] To contact: Ricardo Hinojosa [email protected] To receive our FREE 15 page WHITE PAPER REPORT on the 2017 FUNDAMENTALS OF MULTIFAMILY FINANCING 101 and to learn more about upcoming events at Old Capital Speaker Series please visit us at OldCapitalPodcast.com Are you interested in learning more about how Multifamily Syndications work? Please visit www.spiadvisory.com to learn about Michael's Real Estate Syndication business with SPI Advisory LLC.

You WILL HAVE A PROBLEM with your loan…if the seller does not keep their eye on management operations and rental collections between the signing of the sales contract and the closing date. Lenders can possibly cut back loan proceeds if income declines or expenses rise.

Many apartment buyers are seeking to purchase a DEEP VALUE-ADDED property in a good neighborhood. These types of properties can be tough to find. Brian Holley bought a 160 unit apartment complex a few months ago. It needed lots of rehab to create a better product. He and his team will spend over $20,000 a unit in interior and exterior updating and repairs. Even though the occupancy was in the mid-90% range when acquired; Brian and his team, knew they needed to bring the property to the next level to capture better tenants to pay much higher rents. Listen to Brian discuss the challenges and opportunities he found with buying a deep value-added property. To contact: Brian Holley [email protected] To contact: Jonathan Ferrell [email protected] To receive our FREE 15 page WHITE PAPER REPORT on the 2017 FUNDAMENTALS OF MULTIFAMILY FINANCING 101 and to learn more about upcoming events at Old Capital Speaker Series please visit us at OldCapitalPodcast.com Are you interested in learning more about how Multifamily Syndications work? Please visit www.spiadvisory.com to learn about Michael's Real Estate Syndication business with SPI Advisory LLC.

After finding the right property; selecting the right property management company is the MOST important decision that an ownership group must determine.

The father and son investing team of Jody Ambrose & J.D. Ambrose just purchased a large multifamily property in Texas. After looking for a building for almost 5 years, Jody & J.D. found the right property. Pineview Apartments has 152 units. They originally invested passively into someone else's transaction, then they figured out pretty quickly that they wanted to lead an acquisition team and purchase a large apartment building. They had specific investment criteria that they needed to be met before they would move forward with a purchase. Over the next few years, the Ambrose's searched for the right property. They looked at over 50 large apartment properties for sale and offered on several. In the podcast, Jody and J.D. explain their journey on finding the right property. To contact Jody Ambrose: [email protected] To contact J.D. Ambrose: [email protected] To receive our FREE 15 page WHITE PAPER REPORT on the 2017 FUNDAMENTALS OF MULTIFAMILY FINANCING 101 and to learn more about upcoming events at Old Capital Speaker Series please visit us at OldCapitalPodcast.com Are you interested in learning more about how Multifamily Syndications work? Please visit www.spiadvisory.com to learn about Michael's Real Estate Syndication business with SPI Advisory LLC.

It is a REQUIREMENT to do a thorough analysis of the neighbourhood crime stats and school ratings when you are thinking about investing in an apartment building.

If available, retaining some or all of the existing staff can give you immediate inside knowledge on some of the property secrets that you did not uncover during due diligence.

Scott Henderson started in the apartment industry in 1982. He has learned some valuable lessons in apartment investing and brokerage over the last 35 years and shares them with you. He gives listeners a unique perspective on some historical events in the apartment industry and his assessment on what is going on today with apartment investing. Items that you should be aware of: -What caused the Savings & Loan Crisis and the impact it had on the apartment industry. -How over building can affect a market. -What caused the last major recession in apartment investing? -Is the current euphoria in apartment investing a bubble or reality. Perhaps a little bit of both. To contact Scott Henderson: [email protected] To receive our FREE 15 page WHITE PAPER REPORT on the 2017 FUNDAMENTALS OF MULTIFAMILY FINANCING 101 and to learn more about upcoming events at Old Capital Speaker Series please visit us at OldCapitalPodcast.com Are you interested in learning more about how Multifamily Syndications work? Please visit www.spiadvisory.com to learn about Michael's Real Estate Syndication business with SPI Advisory LLC.

Michael gives some general rules of thumbs on how to "stress" your underwriting for a future valuation on the exit.

In this podcast we speak with 4 lead-partners that came together to buy a 152 unit building in Waco, Texas. We discuss how they met, how they found the property and what they liked about the asset and of course…how they will make it profitable for their equity investors. To contact Kevin or Daniella Dhillon: dhillonpartners.com To contact Bryant Ho: [email protected] To contact Angel Flores: [email protected] To receive our FREE 15 page WHITE PAPER REPORT on the 2017 FUNDAMENTALS OF MULTIFAMILY FINANCING 101 and to learn more about upcoming events at Old Capital Speaker Series please visit us at OldCapitalPodcast.com Are you interested in learning more about how Multifamily Syndications work? Please visit www.spiadvisory.com to learn about Michael's Real Estate Syndication business with SPI Advisory LLC.

Michael discusses what you should do to protect yourself right BEFORE you sign your loan documents and close on an apartment building.

The quarterly loan officer roundtable is an internal discuss with some of the loan officers at Old Capital on what is working or not working with lending. Jonathan Ferrell is introduced to the listeners. Jonathan joined Old Capital as a Senior Director. Jonathan has over 14 years in banking and is an expert on financing commercial real estate. James Eng gives us macro-economic feedback on how some of the different apartment markets are doing in Texas and the nation. Ricardo Hinojosa shares the importance of property management and getting them engaged early in the transaction. Looking at rental comps in the submarket and then building a an initial rehab budget early on with a qualified property management company, can save a ton of time on a deal that may not work. Ricardo goes onto explain some REFINANCE CASH OUT GUIDELINES for Freddie Mac Small Balance loans. Dave Walls talks about the challenges with affordable housing. Jonathan Ferrell stresses the importance of having the right budget numbers upfront when you apply for the loan because if it is slightly off your reimbursements for draws will have an impact. Check and double check your budget numbers, please. Les Meisl speaks about underwriting guidelines with Freddie Mac Small Balance and the MAXIMUM loan leverage you can expect for a refinance- cash out or even a purchase. Smaller, remote cities in the US can have lower leverage requirements than larger cities. Meaning, max leverage in Chicago will be 80%, but max leverage in Tupelo, Mississippi is 70% with Freddie Mac. One size of town will not fit all! Make sure you contact us to find out what the maximum leverage you can expect. Thanks for joining the conversation. To contact James Eng [email protected] To contact Ricardo Hinojosa [email protected] To contact Dave Walls [email protected] To contact Les Meisl [email protected] To contact Jonathan Ferrell [email protected] To receive our FREE 15 page WHITE PAPER REPORT on the 2017 FUNDAMENTALS OF MULTIFAMILY FINANCING 101 and to learn more about upcoming events at Old Capital Speaker Series please visit us at OldCapitalPodcast.com Are you interested in learning more about how Multifamily Syndications work? Please visit www.spiadvisory.com to learn about Michael's Real Estate Syndication business with SPI Advisory LLC.

Michael gives reasons on why he would NOT build large apartments at this time.

Multifamily physical due diligence is extremely important. You gotta know what you are buying! You need an apartment inspector to determine the condition of the asset you are buying. Bryan Amos is a multifamily inspector & engineer. He helps buyers uncover possible rehab concerns and potential future costs when they are considering purchasing an apartment building. He is looking out for you and your investors on any potential future capital costs. Bryan creates a reliable rehab/ construction budget for you and your lender to review. Whether the transaction is a stabilized property or a value-added property, most lenders should be able to include the rehab costs into your loan. Again, do not pay for rehab out of monthly cash flow. BUT BEFORE, you engage an inspector at your INITIAL visit at the property with the listing agent, you should have a back-of-the-napkin opinion on what some of the rehab items will cost to replace or repair. Bryan gives us some initial cost breakdowns on several big ticket items like roofs, air conditioning, foundation, & sewer lines. This invaluable discussion is based on Bryan doing hundreds of inspections of apartment buildings. Listen carefully and you will learn a ton of information. To get in contact with Bryan Amos: [email protected] To receive our FREE 15 page WHITE PAPER REPORT on the 2017 FUNDAMENTALS OF MULTIFAMILY FINANCING 101 and to learn more about upcoming events at Old Capital Speaker Series please visit us at OldCapitalPodcast.com Are you interested in learning more about how Multifamily Syndications work? Please visit www.spiadvisory.com to learn about Michael's Real Estate Syndication business with SPI Advisory LLC.

Michael comments on his personal beliefs on apartment ownership. He points to a few factors that keep his outlook positive. According to a new study commissioned by the National Multifamily Housing Council and the National Apartment Association, delayed marriages, an ageing population and international immigration are increasing a pressing need for new apartments in the U.S., to the tune of 4.6 million by 2030. Currently, nearly 39 million people live in apartments, and the apartment industry is quickly exceeding capacity; In the past five years, an average of one million new renter households were formed every year, which is a record amount; and, It will take building an average of at least 325,000 new apartment homes every year to meet demand; yet, on average, just 244,000 apartments were delivered from 2012 through 2016. Delayed house purchases- Life events such as marriage and children are the biggest drivers of home ownership. In 1960, 44 percent of all households in the U.S. were married couples with children. Today, it's less than one in five (19 percent), and this trend is expected to continue. The aging population- People ages 65-plus will account for a large part of population growth going forward across all states. The research shows older renters are helping to drive future apartment demand, particularly in the northeast, where renters ages 55-plus will account for more than 30 percent of rental households. Immigration- International immigration is assumed to account for approximately half (51 percent) of all new population growth in the U.S., with higher growth expected in the nation's border states. This population increase will contribute to the rising demand for apartments. Research has shown that immigrants have a higher propensity to rent and typically rent for longer periods of time. There will also be a growing need for renovations and improvements on existing apartment buildings, which will provide a boost in jobs (and the economy) nationwide. The research found that 51 percent of the apartment stock was built before 1980, which translates into 11.7 million units that could need upgrading by 2030. The older stock is highly concentrated in the northeast.

Michael Becker knows something about finding apartment buying opportunities. He and his investors own thousands of apartment units. Michael explains what it takes to get the momentum going with listing agents and other influencers. Michael shares his win-win strategy on how to build deeper relationships with the "right people" in the apartment brokerage community. To receive our FREE 15 page WHITE PAPER REPORT on the 2017 FUNDAMENTALS OF MULTIFAMILY FINANCING 101 and to learn more about upcoming events at Old Capital Speaker Series please visit us at OldCapitalPodcast.com Are you interested in learning more about how Multifamily Syndications work? Please visit www.spiadvisory.com to learn about Michael's Real Estate Syndication business with SPI Advisory LLC.

Michael discusses what lenders are looking for when applying for financing on an apartment transaction. With apartment lending- the quality, condition and location of the asset are the most important factors in underwriting. A PRE-APPROVAL is not going to be available because 2/3rds of an apartment lending decision is based on subject property. The lender needs to have a complete picture on a number of critical underwriting variables. Examples: Where is property located and age? What are historical cash flows for the last 2 years and year to date? How much deferred maintenance does the property currently have and what is rehab budget necessary to cure? Who is going to manage the property? What does your monthly proforma show; what is your future expected operating expenses and total income? 1/3 of an apartment lending decision is based on you. What is your liquidity? What is your net worth? What is your past apartment experience and level of ownership or management? Do you receive consistent personal income outside this transaction? Are you going to have additional guarantors, with a sufficient balance sheet that will stand with you? Bottom line, the lender can give you an indication on how much you can qualify for, but because the age, condition and location of the asset is so important in an underwriting approval, a WRITTEN PRE-APPROVAL, before the asset is selected is NOT WORTH VERY MUCH. Speak with your commercial mortgage broker on how to structure the transaction for approval. They will give you a verbal insight on how much you can qualify for based on the total picture. Checklist of Items You'll Need to Provide Your Commercial Loan Broker: ✓ Updated signed personal financial statement ✓ Liquidity verification (bank and/or brokerage statements) ✓ Last 2 years of personal/corporate tax returns ✓ Real estate resume- detail your real estate experience. "I bought a home, fixed it up, and sold it." Tell the story of your successes in real estate. It's like you're applying for the job of running the property. ✓ Schedule of Real Estate owned (what do you currently own; loan balance, value, contingent liability or non-recourse; annual NOI, annual debt service, etc.) ✓ Broker's Offering Memorandum on the property you are looking to purchase ✓ Property's historical monthly operating statements (last two years and YTD) ✓ Current rent roll ✓ Five digital pictures of the interior/ exterior of the property ✓ Your analysis of transaction; share your monthly PROFORMA for the next 12 months. How are you going to operate property?

Lessons learned from 30+ years in Property Management: City Gate Property Group Dawn Waye is President of Dallas/ Fort Worth based City Gate Property Group third party property apartment management. G. Patrick Smits is the CEO. Both have deep knowledge of managing in the "B & C – workforce housing" space. They currently manage over 10,000 units. Dawn & Pat share some ideas on what the 'biggest bang for the buck' will get you as an apartment investor. Dawn shares the '4 P theory' for successful property management. 1) People- Are the onsite people they engaged with your success? 2) Price- Are you getting the best price for materials and labor? 3) Product- Do you have a good idea on what other properties in your submarket are charging in rent for their amenities? 4) Promotion- How are you driving new tenants to the property? Social media? Active marketing? Michael asks Dawn and Pat about surviving a future down turn in apartment investing. To get in contact with Dawn Waye: [email protected] To receive our FREE 15 page WHITE PAPER REPORT on the 2017 FUNDAMENTALS OF MULTIFAMILY FINANCING 101 and to learn more about upcoming events at Old Capital Speaker Series please visit us at OldCapitalPodcast.com Are you interested in learning more about how Multifamily Syndications work? Please visit www.spiadvisory.com to learn about Michael's Real Estate Syndication business with SPI Advisory LLC.

Interest only can certainly help the cash-on-cash returns on your investment. If you are purchasing a broken property- deferred maintenance, bad management, bad occupancy; you need some type of payment relief during times of weak cash flow. Having an interest only period during the renovation is certainly typical for a BRIDGE type of loan. Banks typically don't like to do lots of interest only…because the bank regulators don't like interest only. Most community banks on bridge loans will only do 6-18 months of interest only during the rehab…then it will modify into a principal and interest payment.

Al Silva has successfully closed nearly 15,000 units and over $600 million in investment sales transactions and in doing so has averaged an industry leading 99.6% closed sales price to asking price ratio. Al is currently based out of the Marcus & Millichap Fort Worth office, where he has been the top agent in seven out of nine years since the office opened in 2007. You think it's tough to be awarded a deal by the seller… Al comments on how difficult it is even for a listing agent to win the opportunity to list a property for the seller. Al believes that overall transactional volume will be down 10% in 2017 compared to 2016. He sees that as a blip on the road, when you compare how hot the apartment market has been for the last few years. Al has seen a large increase of international buyers coming into the Dallas/ Fort Worth market. Al comments on what submarkets he likes in the DFW area. If you are a buyer, Al has advice on how you should bid on a property transaction on the tangibles and some of the intangibles needed to win. To get in contact with Al Silva: [email protected] To receive our FREE 15 page WHITE PAPER REPORT on the 2017 FUNDAMENTALS OF MULTIFAMILY FINANCING 101 and to learn more about upcoming events at Old Capital Speaker Series please visit us at OldCapitalPodcast.com Are you interested in learning more about how Multifamily Syndications work? Please visit www.spiadvisory.com to learn about Michael's Real Estate Syndication business with SPI Advisory LLC.

Michael discusses who represents the buyer and seller and who pays the listing agent. In today's HOT apartment market…most apartment listing agents WILL NOT share the sales commission with a buyer's representative. Unlike the single family home market, where it is typical for the listing agent to share or split commission fees, most apartment listing brokers will not pay your agent representing you. If you have buyer's agent in a buyer's transaction, you will likely be paying that agent out of your capital raise.

This is the second podcast focusing on the new apartment buyer. "The first transaction is the hardest…" continues to be our theme. Today, we talk to a couple that was motivated to think about creating a passive income stream by a serious car accident. That life changing event put a new perspective on how important passive income can be. Doug is a dentist in north Texas and was severely injured in an auto accident. He was in a coma for over a week and in physical therapy for months. Imagine not being able to work and earn income during the period time that you are recovering. Think of the impact that this would have on your family. This may never happen to you; but it could. Perhaps passive real estate income should be part of your investment plans. Doug & Jennifer Jopling own a small apartment building in Fort Worth, Texas. We focus on the journey from owning a few single family rental homes to buying an apartment building. Doug & Jennifer share a challenge that they uncovered during the due diligence process. Listen to what was found and how they overcame the unique challenge. To contact Doug or Jennifer: [email protected] To receive our FREE 15 page WHITE PAPER REPORT on the 2017 FUNDAMENTALS OF MULTIFAMILY FINANCING 101 and to learn more about upcoming events at Old Capital Speaker Series please visit us at OldCapitalPodcast.com Are you interested in learning more about how Multifamily Syndications work? Please visit www.spiadvisory.com to learn about Michael's Real Estate Syndication business with SPI Advisory LLC.

Yes and No…. After the Fed's raised rates last week; the 10 year treasury fell. The 10 year treasury is the benchmark interest rate for many commercial real estate transactions. The long term interest rates are getting flatter as compared to the short term interest rates. At this time, it should have a limited impact on investor that purchase or own commercial real estate for a long term hold. We have seen interest rates RISE with the community banks. Many investors use community or regional banks for short term bridge lending. That small rise should not have a significant impact; but be aware in the future if your loan is tied to an adjustable rate index.

Buying your first apartment building is the hardest. The second and third become substantially less stressful and much easier …because you have created a "team template" for successfully closing an apartment transaction. You have put your team together. You have your banker, attorney, broker, insurance professional, third party property management company & physical inspector or engineer. Just like the general manager of a baseball team…you cannot play without players… You cannot close without a support group. Gary & Heidi Young bought their first apartment building a few months ago. They wanted to start off with a small property so that they could own and manage themselves. Gary & Heidi knew that owning and investing in apartment building you would need specialized education. Before they invested in real estate, they invested in education. Gary & Heidi knew that owning and investing in apartment buildings you needed specialized education. They joined a local education and mentoring group to give them a confidence boost. Recently, they closed on an 11 unit apartment building. They enjoy the thrill of buying something and making it better. To contact Gary or Heidi: [email protected] To receive our FREE 15 page WHITE PAPER REPORT on the 2017 FUNDAMENTALS OF MULTIFAMILY FINANCING 101 and to learn more about upcoming events at Old Capital Speaker Series please visit us at OldCapitalPodcast.com Are you interested in learning more about how Multifamily Syndications work? Please visit www.spiadvisory.com to learn about Michael's Real Estate Syndication business with SPI Advisory LLC.

Mark Patten & Mandy Thiebaud are CPA's with McKinnon Patten & Associates in Dallas. Their firm provides comprehensive tax, accounting and advisory services to a full range of real estate professionals and entities. Mark & Mandy are experts in advising clients on why owning real estate is more than just a return on your investment. With multiple IRS tax implications, the CPA's layout some structural ideas on how to put your transaction together. Mandy explains the different ways earned income and passive income are treated by the IRS. She also handles the difference between on-going replacements & repairs versus a capital expense. Mark talks about cost segregation studies and how rapid depreciation could help your real estate investments. What is a 1031 exchange and how can investors benefit? Mark talks about the tax benefits that a like-kind exchange can bring investors. To contact Mark or Mandy: [email protected] To receive our FREE 15 page WHITE PAPER REPORT on the 2017 FUNDAMENTALS OF MULTIFAMILY FINANCING 101 and to learn more about upcoming events at Old Capital Speaker Series please visit us at OldCapitalPodcast.com Are you interested in learning more about how Multifamily Syndications work? Please visit www.spiadvisory.com to learn about Michael's Real Estate Syndication business with SPI Advisory LLC.

Not all Lenders are the same; some Banks are not real estate lenders. Not all Lenders like Apartment loans Not all Lenders like older properties that need to be rehabbed and repositioned Not all Lenders like non-recourse loans; most will not even offer non-recourse loans Not all Lenders will like the part of town that you want to invest in. Not all Lenders will give you maximum leverage to acquire and rehab with your loan Not all Lenders will amortize apartment loans greater than 15 years Your large bank loan officer is not the decision maker; help him/her build a case for their credit committee to approve the loan. Loan officers are sales people and problem solvers, but they don't have signing (approval) authority.

Raj was a civil engineer for the City of Dallas for 17 years. His wife, Raje is a dentist. After losing a huge amount of retirement money in the stock market crash about 9 years ago, they went searching for another way to invest. They wanted something that they could control. They looked at many options… but were drawn to real estate. Before they invested a dime into real estate, they invested in high quality apartment education and mentoring. They wanted to learn the process of real estate and make sure they would not make critical and costly mistakes. Having a mentor reduces the time of ramp up. Raj and Raje began buying value added apartment properties and then leverage them into several apartment complexes with over 600 units. Today, he is a former engineer with the City of Dallas and a full time apartment investor. Raj's contact info: [email protected] To receive our FREE 15 page WHITE PAPER REPORT on the 2017 FUNDAMENTALS OF MULTIFAMILY FINANCING 101 and to learn more about upcoming events at Old Capital Speaker Series please visit us at OldCapitalPodcast.com Are you interested in learning more about how Multifamily Syndications work? Please visit www.spiadvisory.com to learn about Michael's Real Estate Syndication business with SPI Advisory LLC.

Top of the market (A+ institutional construction) is getting a little frothy in the urban core and suburban markets throughout the nation. Spread between the A property and C property is flatting on the cap rates. Coming out of the 2008 recession the A's recovered first and then the B's and C's followed. The cap rates between the different property types have compressed tremendously. Mike gives his insight on why his group is focusing on the "top of the work force housing" space.

Recently Michael Becker was a guest on the Jacob Ayers Real Estate Podcast. Michael talks about his journey from being a commercial real estate banker to being "THE GUY" buying and operating apartments. Michael discusses what made him successful in winning the purchase sale contract when he first started in this competitive market. If you don't have a qualified mentor, get one! If you don't have a team of professionals to vouch for you (attorney, banker, management company, etc), get some! Your first deal will be the hardest….so leverage your team to help you succeed. Listen to jacobayers.com To receive our FREE 15 page WHITE PAPER REPORT on the 2017 FUNDAMENTALS OF MULTIFAMILY FINANCING 101 and to learn more about upcoming events at Old Capital Speaker Series please visit us at OldCapitalPodcast.com Are you interested in learning more about how Multifamily Syndications work? Please visit www.spiadvisory.com to learn about Michael's Real Estate Syndication business with SPI Advisory LLC.

What is it and does every lender have that? Banks do not, Fannie and Freddie do! Freddie's is called Multifamily Green Advantage. Fannie's is called the Green Rewards Program. BOTTOM LINE: Older properties need to be more energy efficient; the agencies are incentivizing owners to change current usage by landlords and tenants of electric and/or water by 20%... if you are successful, your new loan may have a lower interest rate up to 33 basis points. Wow!!

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 KNOWLEDGE…meaning we all know something on that topic. That something may be right or it could be wrong; BUT without having years of experience you have to listen to someone that has really done it…someone that has made those mistakes. Today, we don't want to have COMMON KNOWLEDGE…we want SPECIFIC KNOWLEDGE. Doing it the right way...in apartment ownership and management with BEST PRACTICES. In the podcast today we have the TEACHER of doing it the right way… Susan Weston. With over 40 years of apartment experience in operations, human resources, and learning and development, she has pretty much seen it all. Professional, knowledgeable site management has become more and more important in ensuring maximum returns to owners and investors. In 2017 and into 2018 this may become even more critical as markets may soften and concessions grow and occupancies waiver. Susan updates us on several topics that affect the apartment industry. - Emotional support animals in apartment units - Annual inspection fees by municipalities - Fair Housing- some amazing data on claims - Protected Classes & Litigious residents - Applicant screening - Social Media Marketing & Reputation risk - Be Pro-active in education with CAMS or CAPS certification Apartment ownership is a huge investment. On behalf of your investors, and your family, make sure that you have the best information and education on apartment management and ownership that is available. We don't want you to wind up like Fredo. Contact Susan Weston at [email protected] To receive our FREE 15 page WHITE PAPER REPORT on the 2017 FUNDAMENTALS OF MULTIFAMILY FINANCING 101 and to learn more about upcoming events at Old Capital Speaker Series please visit us at OldCapitalPodcast.com Are you interested in learning more about how Multifamily Syndications work? Please visit www.spiadvisory.com to learn about Michael's Real Estate Syndication business with SPI Advisory LLC.