Today our guest on the show is a multi-family real estate expert by the name of Michael Becker. Becker is the Senior Director of Lending for Old Capital Lending and Principal in
SPI Advisory, a real estate investment firm specializing in the Multifamily Apartment investments in the Dallas-Fort Worth area. What is surprising about Becker’s story is the breathtakingly short period of time he was grown his portfolio. In two years, he has acquired 9 complexes with more coming this fiscal year. Becker started out as a lender, when the light bulb came on one day and he made the decision to move from collecting a check to taking control. He originally started in the single family market and quickly came to the conclusion that he could not grow the single family business with the speed necessary to meet his goals.
Steven and Eric cover much more than just Becker’s investment history. Michael possesses the knowledge to talk frankly about how to acquire debt to purchase multifamily properties. He touches on many types of lending from small, community bank borrowing to Commercial Mortgage Backed Securities (CMBS), and his personal favorite, agency debt (Fannie Mae and Freddie Mac). Find out the pros and cons of each one of the debt options and learn why Michael likes the agency lenders so much!
Other Important Points Discussed:
- Syndication Strategies
- Off Market Deals
- Property Management Strategies
- Importance of Education
- Inspection – Due diligence
- RUBS – Ratio Utility Billing System
- Water Conservation System
- Mistakes made in the 2008 downturn
- His firm lends in Florida and has done a deal recently in Jacksonville
Quotable – “Running toilets is the sound of making money to me.”
Books:
ABC’s of Real Estate Investing
&
The Advanced Guide to Real Estate Investing by Ken McEleroy.
Tips:
Get involved – Educate yourself
Find a Good Property Management
Get a good physical inspection
You are never going to know everything you need to know. Avoid paralysis by analysis.
Favorite part of Florida – Panhandle .