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

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.

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

Paul Grimme is originally from Nebraska. After 28 years in the hi-tech industry he retired in 2016. Paul explains what lead him to investing and buying apartments. Paul had not gone the typical route of investing in single family homes but he did passively invested in five multifamily partnership opportunities with over 1000 doors. On his first large real estate transaction, Paul bought a fractured condo. Paul and his wife, Julie, bought 76 out of 108 units in the Village Condominiums in Waco, Texas. He bought 70% of the total. One seller was selling a block of units that they owned. The remaining 32 units were owned by individuals and were not available for sale. A fractured condo can be an unusual investment. Unlike apartments, where you buy ALL the units at one time; a fractured condo acquisition is when you are buying a specific number of units in a condominium complex. Investing in a fractured condo comes with some unique challenges like "who controls the management of the homeowners association and where and how those dues going to be spent?" Paul reflects on the history of the condominiums and how it became a fractured condo. The investment strategy, over a period of time, is to purchase all the remaining condo units, crush the condo association and then operate the property like an apartment property. Here is Paul'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.