Mar 9, 2017
In less than 10 months, Venkat and Ramana, purchased 3 apartment
buildings in 3 different states with over 500 units, for $27
million. Now, they are hooked on buying apartments.
Venkat is the IT Services business. Initially, he started buying
single family homes. From 2007-2014, Venkat had purchased over 20
homes. He maxed out his ability to get long term Fannie Mae home
loans and wanted to learn how to scale his real estate business. He
found an apartment mentor that specifically taught multifamily
investing. He then found a partner with Ramana in that same
mentoring group. Ramana is the IT Services business for 13 years.
He had done some investing in real estate, but on a limited
basis.
First transaction was in Norman, Oklahoma. Second transaction was
in Phoenix, Arizona.
Third transaction was in Mesquite, Texas.
Phoenix seller forced buyers (Venkat & Ramana) to use their local
mortgage company. After 3 weeks, their mortgage company could not
deliver. Buyers brought Old Capital into the transaction. Old
Capital was able to close within 43 days and with max 80% leverage
and a non recourse loan.
Next deal, Tradewinds Apartments was a $15 million acquisition in
Mesquite, Texas. James explains the difference between CapX and
Re-Incurring expenses and why it is important when you need to
qualify for the loan. Venkat relied upon his property management
company to research the submarket to make sure they could hit
higher rents.
What we learned: More transactions that you do, the easier it
becomes to raise capital from limited partners. You can make 50
calls to new investors and explain it 50 times; or you can invite
50 friends and investors and do a recorded webinar and explain it
one time with slides by explaining the benefits of investing in
your deal. Being part of an apartment mentoring group can help you
bring your apartment investing business to the next
level.
Connect: Venkat at get2venkat@gmail.com Ramana
at rmkorada@yahoo.com
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FUNDAMENTALS OF MULTIFAMILY FINANCING 101 and to learn more about
upcoming events at Old Capital Speaker Series please email us
at INFO@OldCapitalLending.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