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

The 2021 Old Capital Conference is the best Multifamily Conference in Texas. We provide apartment investors a chance to meet general partners, limited partners, apartment brokers, syndicators, management companies, mortgage bankers and apartment education and mentoring companies. This annual conference brings the best vendors together at a huge venue in Texas. They say everything is bigger in Texas… it certainly will be…because on September 22 & 23 you will be on the field at the Texas Rangers ballpark. Yes…the conference is held at the newest ballpark in the Majors. See you then. OldCapitalConference.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. Please leave us a 5 STAR RATING on iTunes; if you enjoyed this podcast.

In real estate investing you should seek consistency or continuity. Some partnerships change teammates on every transaction. Today, Mr X, Ms Y and Mrs Z are all partners… tomorrow, on a new deal… Mr X is the same…but out - are the old partners - and now Ms A and Mr B are added. It seems like a lot of sponsors are gypsies. How does that work and why? Should that be concerning for a Limited Partner investor? Michael explains what he is noticing today in syndication trends and what can certainly be a future problem. 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. Please leave us a 5 STAR RATING on iTunes; if you enjoyed this podcast.

A property manager acts on behalf of the owner in routine tasks such as rent collection, the administration of leases, the scheduling of maintenance and repairs, and, perhaps most importantly, tenant relations. Asset management, by contrast, is concerned with maximizing the revenue potential of each property and identifying new methods of creating longer-term additional value in the asset. These roles are distinct from one another. Jack Langenberg explains what he does as an asset manager for ownership groups. Jack emphasizes that asset managers are applying downward pressure on property managers to do more, which is likely a result of the technological advances made in analytical and data reporting tools in the past two decades. Jack is a real smart guy and you need to take notes. 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. Please leave us a 5 STAR RA

Nobody wants to sound like a rookie when they first enter the apartment business. Especially when having an initial conversation with an important listing broker. Michael, gives you some preliminary questions to ask. Also, when should you bring in your property management company or the lender to review the deal? Finding the right balance on WHEN you should bring in your advisors is critical to your success. In addition, Michael offers you a few examples of when he stumbled in operating apartments. Learn from someone else’s mistakes. 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. Please leave us a 5 STAR RATING on iTunes; if you enjoyed this podcast.

You don’t want to make a large mistake when buying a large multifamily property, but many investors will not hire a qualified apartment inspector or engineer to uncover any physical problems on the asset. Problems like a blocked or broken sewer line; or old electrical panels that won’t trip and will have the potential to spark a fire; or how many older HVAC units must be replaced in the next 2-3 years. These costly problems will destroy your estimated operating budget. Bryan Amos gives you examples on what you can expect when calculating a budget. To contact Bryan Amos: BryanAmos@theomnigroup.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. Please leave us a 5 STAR RATING on iTunes; if you enjoyed this podcast.

Michael gives you his opinion on where the apartment industry is today. Rents are UP, Values are UP, and Cap Rates are DOWN. Is it going to last? TODAY is the 'golden age' of apartment ownership. Michael goes into detail where he sees the opportunities and challenges in the next few months with apartment investing and ownership. Also, the guys discuss the ramifications of being on the wrong side of Fannie Mae and Freddie Mac and how it will impact you on doing future business with the Agency lenders. 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. Please leave us a 5 STAR RATING on iTunes; if you enjoyed this podcast.

Chief Economist Greg Willett gives us the latest updates on rents, vacancy, & cap-rates. Throughout the country many apartment renters are going to need deeper pockets. After a slowdown during the early days of the pandemic, rents are rising again; the biggest such increase since 2016. Nationwide, average apartment rents were up 4.2% last month from May 2020 levels. In Phoenix apartment rents were almost 16% higher year-over-year, and rents rose at an annual rate of almost 15% in Riverside, Calif. Gateway cities, like New York and San Francisco have not been successful in moving rents up and are well below pre-pandemic norms. 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. Please leave us a 5 STAR RATING on iTunes; if you enjoyed this podcast.

How much does it cost to borrower money? Interest rates are one of the key benchmarks for overall costs. The interest rate market is a constantly changing environment and strategies need to adapt to these changes. JP CONKLIN with Pensford gives you insight on where interest rates are today and where they are going. If you are going to borrower money to purchase an apartment building…you need to listen to JP CONKLIN. Managing interest rate exposure and maturity risk are two of the most critical components to the success of a project. To contact JP CONKLIN: pensfordteam@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 Advisory LLC. Please leave us a 5 STAR RATING on iTunes; if you enjoyed this podcast.

The Old Capital Loan Officer Roundtable discussion brings incredible value if you are new to multifamily investing. Listen to some of the most active loan officers in the nation share real lending stories on what is happening today. You and your investors bring in the equity…and your lender brings the majority of the money. Your lender is your biggest partner. Listen to what you can expect from your multifamily lenders today. Should you pursue a BRIDGE LOAN; a FANNIE MAE or FREDDIE MAC LOAN; or a BANK LOAN? Listen to their insight to help you. 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. Please leave us a 5 STAR RATING on iTunes; if you enjoyed this podcast.

Michael explains the LARGEST and COSTLIEST mistake he made in buying multifamily: mismatching his mortgage debt with his business plan. The future is not clear- so you must use past experiences to make future business decisions. Michael thought choosing a longer-term fixed rate loan, with the expectations of interest rates rising in the future, would be a prudent business decision. Unfortunately, it was not. His loan was 10 years…but his business plan was to only keep the property for 3-5 years. Rates remained low and the loan came with a significant prepayment penalty called yield maintenance when they went to sell the apartment building. If he had chosen a shorter loan term with a less onerous pre-payment penalty… he would have saved millions. HE WON’T DO THAT AGAIN! 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. Please leave us a 5 STAR RATING on iTunes

If you are new or a seasoned apartment investor, Michael explains what he sees in the multifamily market. Low interest rates, higher occupancy, and even higher monthly rents with falling cap rates are making this market whacky. Can it be sustained? Well…probably not…but a lot of capital continues to flow into the market. In some of these markets, we have seen a 30% increase in apartment values. 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. Please leave us a 5 STAR RATING on iTunes; if you enjoyed this podcast.

Jad Richa is a Managing Director with Capstone Companies in Florida. He explains where apartment investors are seeking to buy apartments in the Sunshine State. Great conversation. Non-Recourse Bridge Lending (Debt Funds) is hot! Almost too hot! In the last few months, we have seen a huge rise of bridge lender transactions versus Fannie and Freddie. Listen to why some investors are turning to these short-term bridge lenders. Make sure you know the risks when using a bridge loan. To contact Jad Richa: jad@capstone-companies.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. Please leave us a 5 STAR RATING on iTunes; if you enjoyed this podcast.

We all know that Nashville is the epicenter of Country Music, but with a huge population influx- it is a national top 10 apartment market. Adam Klenk, with the Capstone Nashville office, discusses the Nashville Apartment Market. James Eng and Clay Allen chat with Adam concerning unique hotel to multifamily conversions, and how buyers are moving up the food chain by purchasing higher quality apartments and finally- how to win deals earlier in the process. To contact Adam Klenk: adam@capstone-companies.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. Please leave us a 5 STAR RATING on iTunes; if you enjoyed this podcast.

Structuring investor returns is critical for your success. With tons of capital on the side lines…the historical apartment investor yields are falling. Lots of new investors are living in the past when it comes to investor yields. If you GUARANTEED a higher rate of return to your investors- than what the property is currently earning- you are going to be in trouble. Michael discusses those challenges today and what you should consider. Michael Becker has purchased over 10,000 apartment units between Dallas and Austin Texas. He is a former commercial banker and has a unique perspective of being of a former ‘loaner- of money’ and is now a large “owner- of commercial real estate.” 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. Please leave us a 5 STAR RATING on iTunes; if you enjoyed this podcast.

Uh-oh...do not find yourself on the Fannie Mae Bad List of apartment operators. If you get on that list…you can be temporarily or permanently stopped from borrowing with Fannie or Freddie. Both Fannie and Freddie are very, very serious on how you operate and maintain your apartment building. They are your largest partner and require you to continually maintain the asset. If you are black balled from being able to use Agency debt, you will severely handicap yourself from being an apartment syndicator. Michael Becker has purchased over 10,000 apartment units between Dallas and Austin Texas. He is a former commercial banker and has a unique perspective of being of a former ‘loaner- of money’ and is now a large “owner- of commercial real estate.” 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. Please leave us a 5 STAR RATING on iTunes; if you enjoyed this pod

Sean Henry sells apartments in Atlanta for Capstone-Companies. He has decades of experience in commercial real estate brokerage and is someone you want to listen to. Sean gives you the inside information on what is going on in Atlanta. Like- Where are the jobs being created? Where are the largest rent growth submarkets? Never invested in Georgia; what should you know- about the ‘martini glass’ growth pattern in Atlanta? Do you need “hard earnest” money when offering on a deal in Atlanta? Also…Sean gives great insight on how new develop deals are getting done and how the capital stack is put together. To contact Sean Henry: sean@capstone-companies.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. Please leave us a 5 STAR RATING on iTunes; if you enjoyed this podcast.

Secured Overnight Financing Rate (SOFR) is the new index that both Fannie, Freddie and some bridge lenders use for their adjustable rates. Remember, index + profit margin = interest rate. The more stable the index…the more stable the rate. In the last few years, the London Interbank Offer Rate (LIBOR) was the preferred index. BUT…regulators thought that LIBOR could be manipulated and now we have: SOFR. SOFR is consider a ‘less risky’ index. Michael Becker has purchased over 10,000 apartment units between Dallas and Austin Texas. He is a former commercial banker and has a unique perspective of being of a former ‘loaner- of money’ and is now a large “owner- of commercial real estate.” 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. Please leave us a 5 STAR RATING on iTunes; if you enjoyed this podcast.

Seven years ago, Mike Hardage left the HIGH TECH world and now owns thousands of units either as a passive investor or a sponsor. He speaks from experience after owning and investing in over 58 apartment investments with over 12,000 units…WOW!! Everyone likes to talk about winners, but not everyone likes to talk about the challenges in apartment investing. Mike shares with us real stories on what can go wrong in apartment ownership. A fire, a hurricane & then a large cash call became the ‘trifecta of investor problems’. Hopefully, you- like Mike Hardage- will have more winners than losers in your apartment investing. To contact Mike Hardage: Mike@BradSumrok.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. Please leave us a 5 STAR RATING on iTunes; if you enjoyed this podcast.

Michael believes specific education is important before apartment investing. Compressing the learning curve can benefit you as an apartment investor. A mentor can certainly help you. Today, there are lots of education options when it comes to apartment investing. BUT…not everyone that says they are an expert…is an expert. Sometimes, it can be confusing on what program is the best. Michael gives you some inside information that you should be looking to gain from these programs. Michael Becker has purchased over 10,000 apartment units between Dallas and Austin Texas. He is a former commercial banker and has a unique perspective of being of a former ‘loaner- of money’ and is now a large “owner- of commercial real estate.” 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. Please leave us a 5 STAR RATING on iTunes; if you enjoyed this podcast.

Airlines will not give an INEXPERIENCED or a NEW PILOT- a 737 airplane to fly- with a bunch of passengers in the back...if they have only flow a Cessna 172. BUT…How many folks do you know-that are trying to buy apartments without first using a qualified and successful instructor and mentor? Hopefully, those investors are NOT learning on your investable dollars. Do not trust someone with your hard-earned dollars if they have not had specific education in apartment investing. Even limited partner investors need to be educated on the “rules of the road” BEFORE they invest. Brad Sumrok has been teaching and mentoring apartment buyers and investors for almost 20 years. He has made his students financially independent by investing in apartments. Don’t risk your money; talk with Sumrok. To contact Brad Sumrok: www.bradsumrok.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