I recently attended a virtual economics conference where some brilliant minds shared their insights about where the economy is and where we are going. There were some common themes that should come as no surprise. Commodity prices (specifically lumber prices), inflation concerns, government stimulus, and capital gains tax hikes were all discussed. As we are […]
Do I Really Need An Organizational Chart to Get a Loan?
“Spectacular achievement is always preceded by unspectacular preparation.” – Robert H. Schuller Would you be surprised if I told you that one of the most useful documents to lenders in underwriting a multifamily loan is one I rarely receive? In a hypothetical perfect world, it is the first thing I would want to receive when […]
Does My Credit Score Matter For Commercial Real Estate?
If you are a real estate investor that is new to the commercial lending space, you might be wondering why lenders would want to know your personal credit score. It drives me a little bit crazy when I hear the “gurus” selling training programs that commercial is brilliant because it is just asset-based lending, and all […]
Liquidity – Why More is More and Non-Cash Alternatives
I made the plunge about a month ago – I became the proud owner of .027 Bitcoin and .885 Ether. If you’re doing the math, I took a whopping $1,000 and made my first foray into the world of cryptocurrency. It’s proven to be fortuitous timing if you’ve seen any news of late… There have […]
Is There Arbitrage Opportunity in Multifamily Today?
Arbitrage is such a great word. It implies some sort of mystery, intrigue, intelligence, and opportunity. All things that are attractive to us as humans and certainly the opportunity piece as multifamily investors. The word emerged through the course of a conversation I had with a friend and real estate broker this week as we […]
As we round first base in the 3rd quarter of 2020, from my perspective we’re settling into a new-normal. A normal that is full of question marks and ambiguity. Not an easy place to be as an investor, but the appetite for multifamily remains quite strong. The first half of 2020 is essentially the tale […]
Does anyone else feel like we’re about 17 months into 2020 even though we’re only at the mid-July point??? The events of the last couple of months have been heavy, this year has been heavy, and I for one am feeling the weight. No need to rehash why, I know we’re all aware. I started […]
3 Reasons Syndicators Should Embrace Mandatory Lender Reserves
Have you ever run out of gas? I’m not talking the figurative gas tank, but the literal one we have in our vehicles. (Tesla owners sub gas for electricity…) I had a truck years ago that frequently over-stated the amount left in the tank and one time it got the better of me. Embarrassingly enough […]
The Difference Between Recourse and Non-Recourse Loans
I don’t have the exact quote, but the star quarterback turned real estate mogul Roger Staubach was asked about his biggest regret in building his real estate portfolio. His response was he wouldn’t have used debt with an unlimited personal guaranty attached to it. He felt that over years of experience a non-recourse approach was […]
To Reserve or Not to Reserve, That is the Question
With the rise of the COVID-19 pandemic, operating and capital reserves have become a topic of discussion for apartment syndication sponsors and investors alike. For some, today’s uncertainty is a chance to brag about their foresight in raising a large war chest for tough times, while others fear they will soon pay the price for […]