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

A professional property management company can make or break your profitability and overall success to your apartment investment. Find a management group you can trust. A property management company should treat their clients money as their own. Craig Lashley & Todd Parks are with SIMC Property Management. SIMC is a third party property management company that manages over 7500 apartment units. SIMC focuses on properties with a minimum size of 200+ unit apartments. SIMC likes to find employees outside of the apartment industry to join their team. Property Management companies should have a few different divisions. Example: 1) accounting, 2) human resources, 3) construction & rehab ACCOUNTING- is responsible for receiving rental income, paying the expenses and then delivering monthly financial statements to the ownership group. They are also responsible for lender communication for construction draws on rehab and the capital replacement reserves. HUMAN RESOURCES- HR overseas the onsite property manager, assistant manager, leasing agent, maintenance manager, assistant manager & porter. CONSTRUCTION- Your property management company needs to improve and update your property. They execute your vision. Having an internal construction group controlled by the property management company can be cheaper and more consistent than hiring an outside crew. A large property management company can buy in bulk and import fixtures, flooring and low flow toilets directly from overseas, thus saving huge costs. TIPS: When you put a property under contract to buy, make sure that seller does not take their eye off the ball before the property changes hands. If occupancy or NOI fall, your lender may have to reduce your loan dollars. Maximize your rental revenue with LRO. Hotels and airlines use it to get the highest price in the market. Find out if you can use rental optimization for your building. Huge amenity push in apartments to capture new tenants. Craig likes a '24 hour-package room' for boxes delivered by Amazon or UPS. Valet Trash is a great low cost amenity for tenants that will help your bottom line. Todd uses Facebook Messenger to communicate with potential tenants. GOOD ADVICE: As an owner, don't get in the middle between the management company and the on-site employee…or you could get fired. Let them do what they do (operate the building)…and you do what you do. (find the next building to purchase and raise the equity) To receive our FREE 15 page report on the FUNDAMENTALS OF MULTIFAMILY FINANCING 101 and to learn more about upcoming events at Old Capital Speaker Series please email us at [email protected] Interested in learning more about how Multifamily Financing and connecting with Michael Becker and Paul Peebles. Contact: [email protected] or [email protected] 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

The Old Capital team talk about interest rates rising at the end of 2016 and its direct impact on loan proceeds, future of apartment investing throughout Texas and the nation and challenges with underwriting on specific transactions.

Old Capital closed over $420 million in loans in 2016. DFW will have over 25,000 new unit apartment deliveries for 2017 Still concerns in Houston and west Texas. Fannie Mae Green Program can reduce your interest rate up to 33 basis points Challenges with buying apartments in smaller markets with military concentration Freddie Mac Small Balance loan is now available up to a $6 million loan amount Cross Collateralization can be a solution in bank financing Rebuild Ability issues. Can property be rebuilt if more than 50% is destroyed in fire? Financing Challenges with environmental issues. Rent growth. Class A rent growth is slowing. Class B & C is much better. Houston is a preview market with Fannie Mae and impact on financing apartments Focus on location and quality of the asset when buying. Old Capital brings "certainty of execution in lending and closing".

- Old Capital Speaker Series presents Gregg Willett, Chief Economist with Real Page for March 8th Grapevine Convention Center. RSVP at [email protected] - Old Capital Speaker Series presents Dr. Mark Dotzour, Former Chief Economist from Texas A & M Real Estate Center on April 26- Grapevine Convention Center. RSVP at [email protected] To receive our FREE 15 page report on the FUNDAMENTALS OF MULTIFAMILY FINANCING 101 and to learn more about upcoming events at Old Capital Speaker Series please email us at [email protected] Interested in learning more about how Multifamily Financing and connecting with Michael Becker and Paul Peebles. Contact: [email protected] or [email protected] 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. Did you know that when you leave a positive review on iTunes it improves our ranking and helps us recruit great guests? Can you leave us a positive comment at the Old Capital Real Estate Investing Podcast with Michael Becker & Paul Peebles? Click here to leave a review on iTunes

In 2010, Aaron joined an apartment mentor program & learned about apartment syndication. Now he owns hundreds of units with his equity partners. Currently owns 3 apartment buildings: 200 unit Fair Meadows 150 unit Rock Island 340 unit La Jolla Terrace Sold 2 apartment buildings last year: 90 unit Pioneer Villas- Value Added 116 unit Casa Bella- Value Added His father emigrated from Russia and didn't speak english. Father created the largest mattress discounters company in county. Aaron worked several years for his father and learned determination, tenacity and to follow one course to success. Aaron faced many challenges on his first apartment transaction. His initial management company was not focused and had to be replaced immediately. Putting a transaction together is like putting a puzzle together. Aaron discussed the genesis on his latest acquisition- La Jolla Terrace Apartments. Aaron had built a personal relationship with the listing agent for over the last 5 years. The property received over 15 LOI (letter of intent) offers from other potential buyers. He made it to the best and final. His offer was not the highest. The seller requested a personal conference call with the buyer to discuss his purchase game plan. He felt very positive after the call. He wanted to make sure the seller understood his buying passion. Aaron had his financing in place and let his seller know he was prepared. Buyer moved forward with Aaron. Aaron is persistent and has positive expectations of success. Aaron raised $7 million with 70 investors for La Jolla. Aaron recommends the book The E-Myth: Working ON your business…instead of IN your business. Aaron started with 7 investors and now has a database of over 100+ investors. He learned that you must be transparent with your investors to succeed. To receive our FREE 15 page report on the FUNDAMENTALS OF MULTIFAMILY FINANCING 101 and to learn more about upcoming events at Old Capital Speaker Series please email us at [email protected] Interested in learning more about how Multifamily Financing and connecting with Michael Becker and Paul Peebles. Contact: [email protected] or [email protected] 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.

Lane Beene and Jason Hull are heroes. Lane is a current US AIR FORCE- F16 pilot and owns apartments. Jason is a former NAVY SEAL and now finances apartments. Business is like combat and you need the right team members you can trust. Both owe their outstanding military success to being able to count on good teammates.

Things you will learn:

Jason:

Every day is a game day. Going through BUDS, Jason never thought he would ring the bell to quit. 16 people in a SEAL TEAM and everyone has a role and a responsibility. As a team leader…"calm is very contagious." You will never have the perfect plan…but you must make a decision and work with your team.

Lane:

Every mission is important and all teammates play critical roles. No tolerance for mistakes. Surround yourself with teammates with high creditability and capability. Rely upon the whole team, not just one individual. America is still the land of opportunity, don't forget that we live in the best country. To grow, you must rely on other people.

To receive our FREE 15 page report on the FUNDAMENTALS OF MULTIFAMILY FINANCING 101 and to learn more about upcoming events at Old Capital Speaker Series please email us at [email protected]

Interested in learning more about how Multifamily Financing and connecting with Michael Becker and Paul Peebles? Contact: [email protected] or [email protected]

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 SPI Advisory LLC.

Want to learn how to get started in Syndicating Multifamily (Apartment) Properties?

This week on the Old Capital Real Estate Investing Podcast we interview Robert Helms, the popular host of the Real Estate Guys Radio Show. We discuss Robert's background and how he got started syndicating real estate deals. Later, we talk about how Robert has interviewed many famous real estate icons including Rich Dad Poor Dad author Robert Kiyosaki, legendary sales trainer Tom Hopkins, Successful Real Estate Syndication Expert Ken McElroy as well as President Donald Trump, twice!! For more information about the Real Estate Guys upcoming events The Secrets of Successful Syndication and the 15th Annual Investor Summit at Sea...please send an email to [email protected]

Interested in learning more about how Multifamily Financing works? Please visit us at www.oldcapitalpodcast.com. There you can receive a copy of our 15-page white paper report titled "Fundamentals of Multifamily Financing" and to learn more about upcoming events by Old Capital Lending and connect with Michael Becker and Paul Peebles.

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 SPI Advisory LLC.