Apr 7, 2017
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.
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FUNDAMENTALS OF MULTIFAMILY FINANCING 101 and to learn more about
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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.