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

Your lender is usually your largest partner. They can bring in almost 80% of the funds needed to close your apartment transaction. In the last, few years Fannie Mae and Freddie Mac have been the primary lender for apartment syndications. Sponsors have loved Fannie Mae and Freddie Mac because of their execution and flexibility to provide NON RECOURSE, LONG FIXED TERMS, LONGER AMORTIZATION, INTEREST ONLY & SUPPLEMENTAL LOANS. But, what happens IF these Government Supported Entities start to restrict lending. What happens when your lender changes course? We discuss what is happening in the apartment lending market today and what additional loan options you can explore. US Treasury Update on Future Proposals for Fannie & Freddie: https://home.treasury.gov/system/files/136/Treasury-Housing-Finance-Reform-Plan.pdf https://www.fhfa.gov/mobile/Pages/public-affairs-detail.aspx?PageName=FHFA-Revises-Multifamily-Loan-Purchase-Caps-for-Fannie-Mae-and-Freddie-Mac.aspx Are you interested in learning more about ho

10 year treasury is the primary index that Fannie & Freddie use for 10 & 12 year fixed rates. Michael goes into detail about the impact of falling rates will have on the economy. Also, Michael discusses a real-life apartment example on what happens when interest rates fall on a sale.

JP Conklin, with Pensford, advises some of the largest commercial real estate investors in the nation on where interest rates are headed. He lowers interest rate risk to commercial real estate borrowers by using different hedging strategies. His information is critical for investors to make the correct decision on the right loan product, maturity and risk tolerance. JP discusses falling interest rates and the general impact that it will have on future commercial real estate investing. Are we going to get a half point reduction from the Fed on October 30th? What will happen next year to rates? If you are a general partner, how do you hedge your risk? Should we take a FIXED or ADJUSTABLE rate? Listen and take notes from this discussion; because your limited partners will want to know. To contact Pensford: Pensford.com Are you interested in learning more about how Multifamily Syndications work? Please visit www.spiadvisory.com to learn more about Michael Becker’s Real Estate Syndication business with SPI Advis

Lane Beene is with Pilot Properties and owns almost 700 apartment units. This recently retired Lt. Colonel graduated from the US Air Force Academy and flew combat F16’s for over 28 years. Less than 15 years ago, he started with one single family home and turned that into a large multi-million dollar apartment portfolio…all during the time he was serving in the military. He is direct. He is smart. You need to listen to him if you are new to real estate investing. Why do so many millionaires own real estate? Tax advantages! Today, Lane discusses several tax advantages by owning investment real estate. This high level discussion brings some important theories that successful investors have used in the past. Please consult with your financial professional on what tax strategies will work best for you.

When you buy a single family house, AND AFTER THE LOAN CLOSES, your lender will not continuously ask for your updated paychecks, bank statements and annual income tax returns. BUT...in apartment transactions…you lender is your single largest partner and needs continuous financial performance information on you and the asset either on a quarterly or annual basis. Updated operating statements, rent rolls, rehab construction updates, immediate health and safety concerns, updated personal financial statements, personal tax returns are some of the data points collected. Also, be prepared for an annual lender visit to your asset.

Apartment Bankers, Developers and Investors listen to Real Page’s Chief Economist Greg Willett. He is probably the most quoted Apartment Economist in the nation. He has the ear to the movers and shakers in multifamily. Greg discusses the state of todays apartment market. Are we headed into a ‘recession?’ What should an apartment investor do, if we are headed to lower job growth? What areas of the country have the greatest rent growth? Where should you invest? He also breaks down several regional areas with lower job growth and occupancy concerns. Greg discusses the challenges that new laws in New York will have on stabilized apartments and the investors that own them. JC Castillo, with the Apartment Investors Network joins the conversation. To contact Real Page: RealPage.com Are you interested in learning more about how Multifamily Syndications work? Please visit www.spiadvisory.com to learn more about Michael Becker’s Real Estate Syndication business with SPI Advisory LLC.

Lane Beene is with Pilot Properties and owns almost 700 apartment units. This recently retired Lt. Colonel graduated from the US Air Force Academy and flew combat F16’s for over 28 years. Less than 15 years, he started with one single family home and turned that into a large multi-million dollar apartment portfolio…all during the time he was serving in the military. He is direct. He is smart. You need to listen to him if you are new to real estate investing. A 1031 exchange is a way to defer paying capital gains tax on the sale of property under Section 1031 of the Internal Revenue Service code. Lane discusses what savvy investors use as a ‘tool’ to defer capital gains on the sale of real estate. Lane is not a tax advisor, but will introduce you to the high level concept of what he has done in the past with tax planning. Please contact your financial advisor for a more in-depth discussion on your own situation. To contact Lane Beene: lane.beene@pilot-legacy.com

‘Herding Cats’ is a great way to explain to new borrowers on how a loan closing happens at the very end. As you can imagine, many different folks involved in the transaction have different responsibilities. Title, New Management, Lender, Attorney, Borrower are all going in 20 different directions. Michael goes into detail on what you need to know and do when preparing for a transaction to close.

Nicole and Greg recently closed on a 272 unit building in Indianapolis. They have been corporate folks in Detroit for 20+ years. After surviving a few corporate layoffs (did I mention- they both worked in the auto manufacturing business) they looked for a better way to retire. They purchased a few single family homes and then invested in a few apartments; as a passive investor. They learned a lot from their multifamily mentoring and education group and decided to buy their own apartment building. After successfully navigating a smaller deal…they decided to purchase a 272 unit building- 4 hours from their home in Detroit. Nicole and Greg share their CHALLENGES they found before AND after they closed. Today, Nicole has retired from the RAT RACE and is now a full-time apartment investor. Great story! To contact Greg and Nicole: drivehomecapital@gmail.com Are you interested in learning more about how Multifamily Syndications work? Please visit www.spiadvisory.com to learn more about Michael Becker’s Real Estate S

Lane Beene is with Pilot Properties and owns almost 700 apartment units. This recently retired Lt. Colonel graduated from the Air Force Academy and flew combat F16’s for over 28 years. Less than 15 years, he started with one single family home and turned that into a large multi-million dollar apartment portfolio…all during the time he was serving in the military. He is direct. He is smart. You need to listen to him if you are new to real estate investing. The operating statement (PROFIT AND LOSS) shows the line items of operating income and operating expenses. Lane discusses the foundational document that helps you identity the financial performance and presents the true profitability of the apartment complex. To contact Lane Beene: lane.beene@pilot-legacy.com

Boris, Oshi, Albert and Leo are friends. These friends have purchased over 1400 apartment units over the last 5 years. They just closed on a 384 unit building called Rolling Hills in Lancaster, Texas. They have come along way from their first purchase of a two property portfolio of 55 units. Recently, these EX-ENGINEERS are now full time apartment investors. WOW! Can you do that? It was just a few years, while living in California, they wanted to invest in real estate but didn’t like their local rental climate (not landlord friendly) and discovered Texas. They started the traditional route of real estate investing by buying single family homes…and then transitioned into apartments for scalability. The guys go into detail on some of the challenges they came across (a failing two-pipe chiller, hot tenants & city inspectors) on a couple of acquisitions. They have had many successes in owning apartments. Listen to how they systematically purchase, operate and sell apartments to benefit their investors. To co

Michael explains what you need to do AFTER the seller accepts your LOI. Download Michael’s DUE DILIGENCE checklist at the OldCapitalPodcast.com

Neal Bawa is a thought leader in multifamily. This self described “data geek” owns and operates a large apartment portfolio. By using technology and optimization of data, Neal shares what he is doing to create higher rents and a better experience for his tenants. Have you heard of reputation management? How many STARS did your property get? Everyone rates services these days. Restaurants, dentists, auto mechanics and even their apartment experience. Neal discusses the impact your property receives from its online tenant reviews. How do go from 1.5 stars to 3.5 stars and get great comments from tenants? Neal shares outstanding tips on how to improve your reputation. Also, Neal discusses some of the current concerns he has within the apartment industry. Be prepared to take notes. To contact Neal: multifamilyU.com Are you interested in learning more about how Multifamily Syndications work? Please visit www.spiadvisory.com to learn more about Michael Becker’s Real Estate Syndication business with SPI Advisory L

Start building your database of investors. One example is creating your own Apartment Investing MeetUp group in your community. MeetUp meetings are a great way to build your own investor tribe. Bring in guest speakers (contract attorney’s, bankers, title folks, self directed IRA experts, property management companies) that can share their wisdom to your tribe. Its an excellent way to become a thought leader in your community.

Lane Beene is with Pilot Properties and owns almost 700 apartment units. This recently retired Lt. Colonel graduated from the Air Force Academy and flew combat F16’s for over 28 years. Less than 15 years, he started with one single family home and turned that into a large multi-million dollar apartment portfolio…all during the time he was serving in the military. He is direct. He is smart. You need to listen to him if you are new to real estate investing. Lane finishes the ‘4 Doors’ of a decision tree for apartment investors. In this episode, Lane covers the last 2 doors. Door 3- Selecting qualified team members. Apartment investing is a team sport. Don’t start before you have support. Do you have the limited partners equity lined up? Do you have Key Principals that will sign the loan with you? Do you have the best contract attorney, best lender, best property management company, etc.? Build your network to success, today! Door 4- Find the apartment building and do the analysis and selection. Often, many inve

Get to know these guys. Jon Krebbs and Paul Yazbeck are with The Multifamily Group in Texas. They sell ‘B & C” apartments in north and central Texas. Before creating their own regional brokerage firm, they were top brokers for a national commercial real estate firm. Today they have 9 sales brokers concentrating on apartment listings between $5-15 million. Jon and Paul chat about the state of the apartment market and what they are seeing as opportunities right now. Paul gives some insight on what is happening in Killeen, Texas today. Killeen is near the largest US ARMY base in the world, Fort Hood. Killeen is larger that Waco, Texas and just an hour north of Austin. This could be an area that you will want to explore to buy an apartment. Jon and Paul give you an idea on what buyers need to do to ‘win’ a deal these days. They also discuss where the better rental growth markets are at in Texas and where to invest. https://multifamilygrp.com To contact Jon Krebbs: jon.krebbs@multifamilygrp.com To contact Pa

Get out!! Really, Get Out there and meet people that will help you. Professional apartment brokers control the majority of the opportunities in your market. How do you meet them? Michael shares his knowledge on what you should do to meet these ‘gate keepers’ and how to build quality relationships.

Alex Clark has purchased 113 apartment units and loves being in charge of his own destiny. Recently, Alex quit his high technology job and now invests in multifamily full time. It just didn’t happen overnight, Alex had a game plan. About 20 years ago and while in college, his car’s transmission went out during afternoon rush hour traffic in Dallas. Unfortunately, he and his car were broke; very broke. On the side of the road, he had a visualization of what his life should be like in the future. He dedicated his life to finding a better way. He explored different options for success. He tried saving money, investing in stocks and bonds, buying gold…BUT he absolutely felt in control of his destiny by acquiring investment real estate. Listen to Alex’s journey from buying his first 18-unit property to his most recent 71-unit. He is 100% focused on helping apartment investors and his communities. A great story of achievement! To contact Alex Clark: clark@1791.com Are you interested in learning more about how Mul

Michael discusses a simple checklist to apartment investing success. Education is number one! Learn about what you’re investing in. Mentoring and education programs are an excellent way to gain knowledge quickly. BUT…Listening to podcasts on apartment investing or joining apartment investing Meetup groups in your area can also help increase your awareness.

Lane Beene is with Pilot Properties and owns almost 700 apartment units. This recently retired Lt. Colonel graduated from the Air Force Academy and flew combat F16’s for over 28 years. Less than 15 years, he started with one single family home and turned that into a large multi-million dollar apartment portfolio…all during the time he was serving in the military. He is direct. He is smart. You need to listen to him if you are new to real estate investing. You wouldn’t build a home without a set of plans. How do you invest in multifamily without a plan? You need a written strategy. Today, Lane challenges you to create your initial multifamily investment “blue-print.” Also, Lane wants you to understand that identifying a property in the ‘right’ location or market is equally important to your success. To contact Lane Beene: lane.beene@pilot-legacy.com