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

Property taxes, on commercial real estate, is usually the largest line item operating expense on your profit and loss statement. Your Net Operating Income (NOI) is dramatically effected by how much your property taxes go up. (They never seem to go down) In Texas…property taxes have been skyrocketing and causing hardship to profitability. Most commercial real estate investors hire an advocate to fight the taxing authorities for a lower annual tax bill. Mark Cantrell with Cantrell McCulloch is an expert on reducing property taxes in Texas. To contact Mark Cantrell: https://cmi-tax.com/   Are you interested in learning more about how Multifamily Syndications work? Please visit www.spiadvisory.com to learn more about Michael Becker’s Real Estate Syndication business with SPI Advisory. If you enjoyed this discussion…. Please leave us a 5-STAR RATING on iTunes.

Michael gives you insight on what his team focuses on when buying apartments in today’s wacky market. Michael is not soliciting for capital; but just gives an example on what type of pricing discount some buyers are able to achieve. Certain sellers are chasing a higher price on some unproven buying groups. If you are a seller, do you want to always go with the highest price…or Are you counting on certainty to close? Most realistic sellers, in today’s market, need certainty to close. Are you interested in learning more about how Multifamily Syndications work? Please visit www.spiadvisory.com to learn more about Michael Becker’s Real Estate Syndication business with SPI Advisory. If you enjoyed this discussion; Please leave us a 5-STAR RATING on iTunes.

Are there too many general partner syndicators and not enough investors? Within the last 10 years…we have observed a lot of apartment transactions closed with the syndication investment model. As you know, a syndication model is like flying in an airplane. Pilot and passengers both perform critical roles to make a flight successful. The pilots are in the front of the airplane- they are the general partners- they are putting the deals together and making the operational decisions. The passengers in the back of the airplane… they are the limited partners. They are the investors in the deals that bring the bulk of the equity. Today, we have too many pilots and not enough passengers. We need more passengers (equity investors) to run a successful airline (apartment syndication.) Listen to the investment sales team at Rowan Multifamily Advisors in Dallas. They chat about recently closed transactions and why investors are buying or selling. To visit with Rowan Multifamily Advisors: rowanmultifamilyadvisors.com Cole

JESSUP: You want answers? KAFFEE: I want the truth! JESSUP: You can't handle the truth! Well maybe…YOU can handle the truth. “It’s challenging to be an apartment investor these days.” That’s the truth. Not a lot of inventory is available, it is difficult to raise common equity, operating expenses are much higher and mortgage interest rates are up 500% from January 2022. Wow! Yet… some transactions are still being done. In today’s podcast we chat about what we are seeing in apartment investing land and what you should be paying attention to. Spending time with James “the professor” Eng is always enlightening. Are you interested in learning more about how Multifamily Syndications work? Please visit www.spiadvisory.com to learn more about Michael Becker’s Real Estate Syndication business with SPI Advisory. If you enjoyed this discussion…. Please leave us a 5-STAR RATING on iTunes.

Within the last 18 months apartment prices have come down significantly. In some markets- up to a 20% reduction of value. Yikes!! Has the knife fallen enough? Is it time to start buying apartments, again? What types of apartments should you be looking at- Class A, B, or C? What type of financing would you do? Michael shares his walking path with you in apartment investing. Are you interested in learning more about how Multifamily Syndications work? Please visit www.spiadvisory.com to learn more about Michael Becker’s Real Estate Syndication business with SPI Advisory LLC. If you enjoyed this discussion…. Please leave us a 5 STAR RATING on iTunes.

Joey Tumminello with Marcus & Millichap’s Institutional Property Advisors Group shares his insight on what the “smart buyers” (REIT’s, pension funds, life insurance and large family offices) are buying or NOT buying. Institutional-grade real estate is Class A or Class A+ property that generally has minimal risk of deteriorating or becoming obsolete during the investment holding period because the properties are brand new, have state-of-the-art systems, and the best amenities. These type of buyers set the pace for the entire industry with buying or selling.   To contact Joey Tumminello: jtumminello@ipausa.com   Are you interested in learning more about how Multifamily Syndications work? Please visit www.spiadvisory.com to learn more about Michael Becker’s Real Estate Syndication business with SPI Advisory. If you enjoyed this discussion…. Please leave us a 5-STAR RATING on iTunes.

Today, apartment investing is completely different from what it was just 18 months ago. Interest rates are much higher, leverage is much lower, cap rates are higher, and values have fallen. Yes, it is challenging to be a real estate investor. Veteran Apartment Mentor- Brad Sumrok discusses what he is advising clients today. To contact Brad Sumrok: www.bradsumrok.com May 2023 Old Capital Virtual Speak Series: Capital Calls RSVP: OldCapitalLending.com Are you interested in learning more about how Multifamily Syndications work? Please visit www.spiadvisory.com to learn more about Michael Becker’s Real Estate Syndication business with SPI Advisory. If you enjoyed this discussion; please leave us a 5-STAR RATING on iTunes.

For 30 years Robert Tinning managed apartments for rich real estate owners. He was great at managing other people’s properties BUT... he always dreamed about buying his own portfolio of apartment buildings. Robert had the experience but didn’t have the money. He found the money to buy through apartment syndication. He then quit his W2 job and jumped into apartment ownership a few years ago. Robert bought 6 large apartment buildings. Wow! He manages his own portfolio of apartments. Robert shares a few lessons that will help you. To contact Robert Tinning: rtinning@mrtmgmt.com May 2023 Old Capital Virtual Speak Series: Capital Calls Are you interested in learning more about how Multifamily Syndications work? Please visit www.spiadvisory.com to learn more about Michael Becker’s Real Estate Syndication business with SPI Advisory. If you enjoyed this discussion…. Please leave us a 5-STAR RATING on iTunes.

In the Dallas/ Fort Worth market, Apartment sales volume is down 75-80% from just 12 months ago. In smaller markets, volume is probably down 80%+. Yes…interest rates are up, but if you are going to buy commercial real estate, most investors prefer multifamily. Why? 1) Fannie and Freddie are your backstop with financing and can offer longer fixed rate terms 2) rents can reset to the market every 12 months 3) you can change market value by increasing your NOI 4) personal tax advantages. If you are new to multifamily, this could be the time to put together your team (equity, debt, listing brokers, real estate attorney, etc.) for the NEXT cycle. To contact Jakob Andersen - jakob.andersen@nmrk.com To contact Bart Wickard – bart.wickard@nmrk.com To contact Matt Wideman – matt.wideman@nmrk.com To RSVP to the Old Capital Speakers Series: OldCapitalPodcast.com Hear From Top Property and Asset Management Companies- Wednesday April 26th. Are you interested in learning more about how Multifamily Syndications work? Please

Inside stories from the front line. You invested in a real estate transaction because of the tax implications and now the property gets foreclosed upon…What exposure do you have with the depreciation recapture? It could be huge. Yikes! Also… Learn what you should be doing to protect yourself if you have a high leverage adjustable-rate bridge loan. Be prepared to make a move… because “hope is not a strategy.” Make sure your lender is advising you on what options you have today…. should you - 1) sell the asset, 2) refinance (if you can) to a Fannie/ Freddie/ FHA, 3) a capital call to investors. To RSVP to the Old Capital Speakers Series: OldCapitalPodcast.com Hear From Top Property and Asset Management Companies- Wednesday April 26th. Are you interested in learning more about how Multifamily Syndications work? Please visit www.spiadvisory.com to learn more about Michael Becker’s Real Estate Syndication business with SPI Advisory. If you enjoyed this discussion…. Please leave us a 5-STAR RATING on iTunes.

Today, in the podcast we feature JP CONKLIN with Pensford. JP walked through the future direction of interest rates after the .25-basis point hike last week. When will it end? We recorded his discussion with over 300 apartment investors at the Old Capital Speaker Series in Dallas on March 22. Again, the Speaker Series is an educational & networking event. We bring in top speakers in the apartment industry. JP is an expert in the direction of current and future interest rates and what effect it has on apartment financing and investors’ risk. You want to listen to him. We appreciate JP who flew in from North Carolina. To get the Pensford Newsletter: Pensford.com Are you interested in learning more about how Multifamily Syndications work? Please visit www.spiadvisory.com to learn more about Michael Becker’s Real Estate Syndication business with SPI Advisory. If you enjoyed this discussion…. Please leave us a 5-STAR RATING on iTunes. *Final OC Speaker Series Interest Rate Update - March 2023

Brazilian Immigrant… purchased over 2100 apartment units. How did he do it? Dante Andrade came to Texas with a huge talent- he is an expert piano player. He sharpened his skills at the internationally famous University of North Texas Jazz Band. He graduated and played in small clubs, big churches, and then taught students how to play. He loved playing music but also had the desire to get wealthy. He knew that playing the piano 24 hours a day…for 7 days a week… wouldn’t get him there. He had to find a better way. He discovered an apartment mentoring group, and they accelerated his learning. Listen to Dante’s journey on how, with the help of our DUS underwriter acquire over 2100 units. He’s living the American Dream…Are you? To contact Dante Andrade: dante@tourocompany.com Are you interested in learning more about how Multifamily Syndications work? Please visit www.spiadvisory.com to learn more about Michael Becker’s Real Estate Syndication business with SPI Advisory. If you enjoyed this discussion…. Please lea

International investors want to invest in the US. US investors want to invest in Texas. Texas investors want to invest in Austin. Today, Matt Pohl with Walker & Dunlop gives you the apartment update from the Capitol of Texas, Austin. Austin ranks second on the list of fastest-growing economies in the US. With a 2020 population of 2,283,371- the Austin MSA is no longer a sleepy little college town. Should you consider Austin for your investable dollars? To contact Matt Pohl: MPohl@walkerdunlop.com Are you interested in learning more about how Multifamily Syndications work? Please visit www.spiadvisory.com to learn more about Michael Becker’s Real Estate Syndication business with SPI Advisory. If you enjoyed this discussion…. Please leave us a 5 STAR RATING on iTunes.

Today, Keith and Shannon Knight own and operate multifamily properties in North Texas. Prior to getting into apartment investing they purchased and operated a few single family vacation rentals in Orlando. It was a very profitable business but lacked the scalability. Luckily they found an education and mentoring group and became hooked on investing in apartments. They started in 2019 with the acquisition of a stabilized two property portfolio- of 40 units. In 2020, they purchased a 60 unit, heavy value add property. They spent over $28,000 a unit in rehab. Wow! Listen to the Knights share their story on how they got into apartment investing and the success they have had. To contact Keith & Shannon: keith@knightreigroup.com Are you interested in learning more about how Multifamily Syndications work? Please visit www.spiadvisory.com to learn more about Michael Becker’s Real Estate Syndication business with SPI Advisory LLC.
If you enjoyed this discussion…. Please leave us a 5 STAR RATING on iTunes.

Did you ever listen to a guy that KNEW what he was talking about? I mean really knew the subject. The February Speaker Series features THAT guy. Greg Willett is with Marcus & Millichap- Institutional Property Advisors Group. He is the apartment economist that big institutional apartment buyers listen to, senior bankers listen to, he is quoted in numerous newspapers and financial articles, and now we want you to listen to him. Greg chats about what is currently on the horizon for apartment rental growth, cap rates, and what local markets are the best. Great conversation in front of 300 apartment investors. Are you interested in learning more about how Multifamily Syndications work? Please visit www.spiadvisory.com to learn more about Michael Becker’s Real Estate Syndication business with SPI Advisory LLC.
 If you enjoyed this discussion…. Please leave us a 5 STAR RATING on iTunes. A NEW CYCLE BEGINS by Greg Willett

Higher Interest rates and lower debt sizing is what ALL apartment syndicators are anxious about today. What is your defensive strategy? Michael gives you INSIDE INFORMATION on how he is structuring his transactions in this environment. Survive until ’25. Listen to the guy that has acquired over 14,000 apartment units. Are you interested in learning more about how Multifamily Syndications work? Please visit www.spiadvisory.com to learn more about Michael Becker’s Real Estate Syndication business with SPI Advisory LLC. If you enjoyed this discussion…. Please leave us a 5 STAR RATING on iTunes.

Mention HUD financing to apartment syndicators a couple years ago…they would laugh at you. Today, many syndicators are not laughing. Those adjustable-rate loans need additional capital (like a fish needs water) from their limited partner investors to purchase expensive interest rate caps; so numerous syndicators are exploring different refinancing options. Fannie & Freddie are good options, but many syndicators are “changing the narrative” to hold the property longer until the market improves. A HUD loan could be a better option with a 35-year fixed term and lower debt service coverage to qualify. Listen to this important discussion on HUD financing in today’s market. Are you interested in learning more about how Multifamily Syndications work? Please visit www.spiadvisory.com to learn more about Michael Becker’s Real Estate Syndication business with SPI Advisory LLC. Please leave us a 5 - STAR RATING on iTunes, if you enjoyed this podcast. We would appreciate that, thanks.

If you are going to be a syndicator for the next decade or two; you must protect and communicate to your limited partners. We are in turbulent times in multifamily. Many promised distributions have not been made to investors, interest rates have skyrocketed after the loan documents were signed, interest rate caps have gone up in cost over 40 times, and rental growth is stagnant. What is the general partner to do? We discuss three challenges that Lane Beene and his team at Pilot Legacy Group are faced with. Listen to how they protected their limited partner investors when REAL DOLLARS are at risk. Watch their monthly video on getting the message out to their limited partners. To contact Lane Beene: lane.beene@pilot-legacy.com Watch How Lane and his team communicate: https://www.youtube.com/watch?v=uYmZ9walxEM Are you interested in learning more about how Multifamily Syndications work? Please visit www.spiadvisory.com to learn more about Michael Becker’s Real Estate Syndication business with SPI Advisory LLC.

Over 10,000 real estate professionals came to Las Vegas last week. This is the BIG CONFERENCE for apartment buyers & sellers, lenders, equity providers, new apartment builders, commercial Realtors and lots of other folks that support the apartment industry. This meeting is not for the brand-new syndicators, this is the next level of apartment investors. We spoke with the major players in this dynamic industry. You want to know what they shared and how it WILL adjust your investing for 2023 and beyond. Are you interested in learning more about how Multifamily Syndications work? Please visit www.spiadvisory.com to learn more about Michael Becker’s Real Estate Syndication business with SPI Advisory LLC. Please leave us a 5 - STAR RATING on iTunes, if you enjoyed this podcast. We would appreciate that.

Mark and Todd sell apartments in Texas, Oklahoma, and Arkansas. Their team traded over a $1 BILLION in apartments in 2022. Wow! Listen to how apartment transactions are being structured today. What makes a good buyer? Who is selling & why? Where is the money (debt & equity) coming from? What are cap rates today? Are syndicators still buying? At this valuation level of the apartment market-should you dollar cost average (like stocks) by investing in this market? Also…helpful Ideas to share on why investors continue to invest in apartments. Are you interested in learning more about how Multifamily Syndications work? Please visit www.spiadvisory.com to learn more about Michael Becker’s Real Estate Syndication business with SPI Advisory LLC. Please leave us a 5 - STAR RATING on iTunes, if you enjoyed this podcast. We would appreciate that.