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

Typically on a capital raise you want to have a pre-existing relationship with your potential investor. The number one question that you must answer for the investor is A) How are they going to get their money back; B) What is the timeline going to be. Also, make sure that your debt lines up with a similar maturity as your investment strategy. Originating a new short term loan on a long term investment strategy is probably not going to work. Make sure that you contact a qualified attorney that can help you build a Private Placement Memorandum that discloses all potential risks an investor needs to know.

Mike Spotts just closed on a stabilized 94 unit apartment building. Mike grew up in Plano and attended Texas State University. He was in the high technology business and wanted to transition into real estate. Mike started buying duplexes and single family homes. Mike was equity rich with a 13 homes, but was liquidity poor. He decided to sell his homes and raise liquidity to buy apartments. Mike is a big fan of multifamily education and mentoring. That was his first investment. He invested in himself with apartment education. Mike had passively invested in 3 separate apartment partnerships before he felt ready to 'lead' his own transaction. His first transaction is a property called Agave Villas Apartments in Irving, Texas. Mike liked the submarket and condition of the asset. The property is near a high school. During due diligence, Mike and his team found a huge water leak. Hundreds of gallons were flowing down the drain every day. When fixed, that one line expense item saved them thousands. Additionally, Mike explains the bottom line on getting higher rents after doing some moderate rehab on his asset. Amazing. Mike decided that he wanted to know more about repairs and maintenance to his property so went back to school to learn air conditioning and heating repair. He does not work on his own systems, BUT having 94 individual HVAC systems, he wanted to make sure he knew what the real costs were. It probably was a good investment. Ricardo explains how he was able to provide Fannie Mae financing for a first time apartment buyer. Here is Mike'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.

Michael uses his DUE DILIGENCE checklist to help him request documents from the seller. Everything is written out and are standard items for the seller to deliver. Make sure that you get a copy of this 'wish-list' at the OldCapitalPodcast.com website.

Kenny purchased his first out-of-state property in 2014. Kenny initially started buying apartments in Texas and then he bought in Colorado, Oklahoma and Ohio. Kenny's philosophy is have "real estate and will travel." He likes to buy in landlord friendly states that contain diverse economic drivers for growth, low unemployment, and historical population growth. Kenny explains the challenges of living in Dallas, but owning apartments in different states. He actually visits his properties out of state more frequently than the ones he owns in his immediate area. Everyone believes that proformas and partnerships work in straight lines, but Kenny believes in being flexible to handle 'operational curve balls' as one of his keys to his success. Kenny chats about his latest acquisition in Waco, Texas. Kenny bought this property because of its location near Baylor University. It was 50% occupied and needed lots of rehab…but its spectacular location made it a great opportunity. The seller could not provide historical financials to the property. Typical bank financing was not available because of lack of financials and low occupancy on the asset. Kenny had to be creative on how he was going to finance the acquisition and rehab of the property. He discusses the strategy of using 'hard money' as a tool. Hard money can be an option when an ''all cash" purchase is not available. It's a short term solution and can help you acquire more assets. 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 the upside and the downsides of either partnering with a laundry vendor or owning your own machines. Michael also talks about increasing your NOI with other non-rental income line items.

The Old Dawg chats with The Big Dog (Michael Becker)

Bill Manassero with the Old Dawg REI Network Podcast explores why Michael Becker has a track record unlike few others. In less than 4 years, Mike has acquired over 4,000 units. That's right! 4,000 units in less than 4 years! In this very special podcast, Mike will be sharing some of his insider secrets on how he got there so fast. In his interview he will be discussing tips for working with brokers (your number one source of great deals), leveraging and how to find the best off-market deals. • How to recruit people into your deal to help you qualify for the good loans • How to build and maintain a strong deal funnel • How Mike went from buying single family foreclosures, rehabbing and renting them out to buying multimillion dollar apartment communities • How to get brokers to listen to you even when you have no prior experience • How to get brokers to call you first when they have great off-market deals • The importance of knowing how to properly underwrite potential properties • Creating a powerful "elevator pitch" to share with everyone you meet to attract great deals and high net worth investors Listen to the olddawgsreinetwork.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 kills a transaction right off the bat? Michael only buys in 'specific' areas and will not compromise on the asset location or quality. Even though it might be tempting…don't buy in the 'hood. Michael's investing advice is that you must define the submarket that you want to make a position in. Michael describes what the buying environment is like in Dallas today.

Bob DeLong was concerned about his retirement and was looking for a solution. He found that investing in apartments could create passive income. He now invests in apartments in central Texas. He is a managing member and a passive investor in several hundred apartment units. Bob believes that the Austin 'Class C' apartment market is incredible or insane. Demand outstrips supply…rents are going up and occupancy is at 98%. Bob has properties in Austin and San Antonio, Texas. Prior to getting into apartments, Bob was in the engineering and construction business for over 35 years. He is a hands-on type of guy. His initial investment strategy was IRA's and 401k's until he realized he needed something more. His retirement lifestyle was in jeopardy. He was concerned that drawing out his money from a 401k, and not putting money back in, was frightening. He felt that he needed passive income to retire if he was going to live another 20-30 years. Bob found an apartment mentoring and education group. Bob was initially skeptical and only made some small passive investments in other peoples properties. Over a period of time and four apartment investments, Bob began to believe that apartment investing was a viable solution for his retirement with passive income. Bob believes that having the mentoring and education group, that he joined, was the 'game changer'. He could not have done it without them because it would have taken him years of trial and error to figure it out. After being a passive investor for several years, Bob decided to become a managing member and put his own transactions together. In the podcast, Bob describes how he operates and manages his properties in central Texas. Bob'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.

Smaller buildings can typically be more challenging to staff and then push payroll expenses over less units. Owning apartments is a scaleable business. Mike explains some of the rules of thumb on how many units you need to own to hire a manager and maintenance person and some of the solutions that are necessary to make money on your investment.

Friends for over 17 years; Boris, Oshi, Leonid & Albert currently live in Northern California and now own 200 apartment units in Dallas, Texas. How do hardware designers that live over 1700 miles away, find, own and operate apartment buildings? Boris chats with James on how they found their first 55-unit apartment property and how they managed a $300,000 rehab project from a long distance. After the rehab, the partners were able to increase rents by over 30% a unit. They increased NOI dramatically, thus increasing value. They did not syndicate this deal. They only used their own personal funds. The next purchase was a 142 unit- Class C property in Arlington, Texas. They purchased a slight value added property. They had to assume the current Fannie loan and apply for a "second lien" supplemental to get total leverage up to 75%. Wow! That was a tough one. They had only owned their first property for a little over a year…and now they were going to double the size of their portfolio. Fannie had to get comfortable with the new sponsor and their management company. Fannie knew the seller (they liked his long term ownership experience) and now we had to convince Fannie to substitute them with a new "limited experience" buying group. Yikes!! We got it done. The guys explain on how they are educating potential multifamily investors in the Bay area. They run a successful MEETUP GROUP in Las Gatos, California. They believe MEETUPS are a great ways of bringing investors together. Advice to new apartment buyers…make sure you have the correct rehab amount needed upfront when applying for a loan…and never think you can take it out of cash flow. Have more money; than less. It's always easier to return investors' money- than having a capital call with your investors. 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.