As multifamily syndicators, we are focused on finding quality deals and raising money. But securing the financing you need can make or break a real estate deal and reaching out to your lender early in the process will save you a great deal of time—and keep you on track to close as planned. So, what do you need to know about multifamily financing? John Brickson serves as Director at Old Capital, a Dallas firm that specializes in arranging financing for commercial real estate investors across the country. John’s team focuses on $1M to $30M loans on multifamily properties, and in 2017, Old Capital closed more than $750M in loans. John’s market insight and established lender and equity relationships afford his clients a tailored, best-in-class financing solution. Today, John joins me to offer insight on interest rates in 2019. He explains the difference between working with directly with a lender versus using an intermediary and describes why it’s safer to invest in properties that qualify for Fannie Mae or Freddie Mac. John also shares advice around financing smaller deals and covers the pros and cons of taking out a bridge loan. Listen in to understand the most common mistakes investors make when it comes to financing multifamily deals and learn why you should get your lender involved early in the process! Key Takeaways John’s insight on interest rates Movement in last quarter of 2018 Lock in long-term, fixed rate financing The difference between direct lenders and intermediaries Direct lender = work with bank to arrange loan on own Intermediary = broker (save time, keep closing on track) John’s take on the best properties for multifamily investors 5-units and above Stabilized and cashflowing (qualify for Fannie/Freddie) Target loan size $1.5M John’s advice around financing smaller deals Finance acquisition + rehab with bank loan Increase value of property to >$1M Do cash-out refi within 12 to 24 months The purpose of a bridge loan Finance acquisition when property not stabilized Sell or cash-out refi with Fannie/Freddie once stabilized The current terms for bridge loans Banks:

When you hunt, the prey runs away. But when you fish, you simply put a lure in the water and let the fish come to you. Tim Bratz likens raising private money to fishing: You provide value through education and intentional conversation—and then wait for the investors to come to you. Tim is the owner of CLE Turnkey, a real estate investment firm focused on apartment buildings, vacation rentals and other commercial properties in Ohio, South Carolina, Georgia, Florida and Texas. His current portfolio consists of 2K units with a value of over $100M. Tim also offers coaching and mentoring through Commercial Empire. Today, Tim joins me to explain how working as a commercial broker sparked his interest in investing and share the story of buying his first property—with a credit card! He discusses his transition from flipping, wholesaling and single-family rentals to multifamily buy-and-holds as well as his mindset shift around hiring a team. Listen in to understand the current opportunity around raising capital for multifamily and learn Tim’s approach to luring passive investors rather than chasing them. Key Takeaways How Tim got interested in real estate investing Worked as commercial agent in NYC Ran numbers on landlord’s profit How Tim bought his first duplex on a credit card Asked for $100K credit limit, received $15K Flipped property in 75 days for $13K profit Tim’s transition to multifamily buy-and-hold Connected with investors ($1M to work with) Found 8-unit building in C-class area Apartments scalable, financing easier Portfolio of 2,000 units in 42 months Why raising capital is the best use of your time Finance commands all other industries ‘Control the money, control the deal’ Tim’s mindset shift around building a team Hesitant to hire assistant for $35K/year Revenue increase from $100K to $400K/year The activities Tim outsourced first Dry cleaning, car wash, post office, etc. Marketing and inspections Tim’s first six-figure hires COO, CLO = engines that run business $48K salary + profit share based on role The current opportunity around raising money Uncertainty in market, volatility Shift from stocks to hard assets Why multifamily is the safest investment More control than stock market Limited risk in B, C+ properties Invest for cashflow vs. speculation Tim’s approach to potential passive investors Educate around opportunities (e.g.: self-directed IRA) Fish rather than hunt, intentional conversations What investors are looking for Collateral and ROI Credibility, fortitude Connect with Tim Tim on Facebook CLE Turnkey Commercial Empire Resources Invest with Michael The Ultimate Guide to Buying Apartment Buildings with Private Money Michael’s Mentoring Program <a href=...