Video Closed Captioning:
good morning good afternoon good evening
folks michael zuber one rental at a time
it is friday where you’re talking with
mr stephen dow and again what makes this
channel unique and why you need to
subscribe like and comment yes i said
subscribe i always forget to say that
subscribe right now is because i have
experts that come on and talk about
different things and
i can merge conversations together so
this is going to be an interesting one
i’m going to take a conversation i had
yesterday with jonathan twomley a huge
syndicator who’s doing huge deals and
we’re going to work in this conversation
with mr stephen dale but before we do
that let’s welcome to the show and ask
him to do his marketing spiel so we both
don’t get in trouble
okay thank you again although i work
very happily for velocity mortgage
capital all the ideas and topics
discussed on this channel that of my own
and let’s get it going then yeah so
yesterday with mr jonathan tumley we had
a great conversation about the three
levels of risk
in doing apartment syndications right
one of the things about doing a
syndication is you have a gp and you
have lps right limited partners
if you’re an lp uh it is truly a passive
investment
right but you have three levels of risk
and we are going to talk about number
two because i had never thought about it
before so just so we know the three
levels are the deal obvious and number
three is the syndicator or the gp
general partner or general general
partner yeah whatever principle right
but there’s a second variable that was
very important it was in folks if you
haven’t watched the video with jonathan
yesterday you have to and that is the
debt structure
a lot of the deals being done today are
being underwritten with um bridge debt
very short term we’re talking short term
like blew up dave ramsey short term and
i think people need to realize that you
know what they’re there is 30-year money
out there
right or a commercial for office for
apartments you are a provider of that
you’ve given me 30-year money on a cash
out refi on an office which i didn’t
think was possible
right um so again if you’re looking at a
big deal right either for your for
yourself
i strongly suggest in the environment we
are in you at least consider
30-year money i would underwrite the
deal at 30-year money then if you choose
to go get a five seven ten-year arm i’ll
go for it but at least underwrite the
deal with 30-year money will be higher
but it will give you peace of mind so
what do you think about that you you
you’re in the game right you go to these
conferences mezzanine bridge all this
stuff
man it just screams risk to me
well
again especially in the environment that
we’re in that kind of risk isn’t really
uh the smart play i would say because
you know rates are going to be
going up not if but when and how much
and so why stick yourself in a
short-term fix
you know um six-month loan or what have
you because then now you’re not gonna
get into a better loan it’s gonna
possibly be a higher rate at that point
so why not lock in like you said 30-year
fix at a much lower rate the risk there
is none especially for 30 years yeah
what i would tell folks if you’re
looking at buying an apartment or office
like i am i’m looking to deploy like 2
million bucks this year
i’m going to underwrite the deal with
with fixed 30-year debt and you know
i’ll compare and shop around but i can
tell you peace of mind
is uh
that’s the one thing i’m i’m at i won’t
grow as fast as lots of people but i
will sleep like a baby
well i i think nowadays rates aren’t
still too bad given the fact they’re
even 30-year fixed relative to some of
these short-term fixed uh because
especially on the commercial side sure
the rate again if you’re rate chaser
might seem uh um you know more
advantageous but the fact that it’s a
short-term fix and the amortization is
either 20 to 25 year so the cash flow’s
not as well so again i think that whole
like data on the rent as we did on the
previous uh episode i think that would
be an interesting aspect as well so
i think
that that’s another important factor as
far as cash flow and the stability of
the fixed uh rate for 30 years so a
combination of that it’s
it’s a pretty uh it’s a triggering
option yeah it’s funny because again
people sometimes don’t do the math
and it is amazing what would happen you
know your higher rate no they do the
math but i think the scope of
perspective is so somewhat short-sighted
you’re like 50 years that you’re doing
people like two years from now or oh you
know what my cash flow is good this year
because they’re only calculating that
six month short term you know uh uh uh
interest rate or loan they’re not doing
okay are you only gonna keep it for six
months are you gonna keep it for two
years or however long that loan is no so
if you’re gonna keep it longer lock in
that 30 year money yeah
yeah for me where i was going is it was
amazing to me because at least i will
admit to having never done this before i
actually never compared a 25 year i am
at a 30-year ramp right this extra 60
months it was shocking you you gave me a
rate on 30-year money that was i think
i think it was like a quarter point
higher than i could have gone elsewhere
but i would have gotten a 25 year
amverse and had adjustable rate mortgage
i think the payment different was like
three dollars
right like
for three bucks i don’t have to think
about refining in three or five or
whatever years like right sign me up
three dollars for peace of mind
well i think that’s where when you have
that that kind of conversation with
people and you’re able to present the
right you know perspective in a sense
without math once you do it all it’s
like wait a minute okay that makes sense
but when it’s short-sighted with just
rate chasing because that’s the easy
sale i got the lowest rate i got the
lowest rate yes you do hundred percent
but then when you do the math and the
cash flow and the you know and points
right
and and you know all the hoops you guys
jump through and the length of time it
takes and everything else
it’s not always the best situation so
especially on the commercial side right
now yeah so three dollars i got a 30
year fixed uh i got it done in five
weeks which most of that was the
appraisal
right um you asked for three pieces of
paperwork
you know really the only one that wasn’t
you know the only one that was extra
which was valid was the leases for
people in the office i’m like well that
makes it right
right
not your whole portfolio
dude somebody did that to me before i
was like i know you told me you told me
i’m out because my leash is 15 pages
long you think i’m going to send you
right i’m going to have my guy send 3
000 pages of i’m not doing that to
somebody
yeah not after you told me you would
never do that that was the thing that
you know obviously you told me they make
promises
it always yeah famous last words oh no
don’t worry no no
yeah so again these this the importance
of 30 or money so again what i would
tell folks if you’re one rental at a
time family you’re like me you’re
looking to shop right the market’s going
to slow down deals are going to be out
there i do believe
that peop there are a lot of people
doing today’s with short-term financing
that will become forced sellers i’ve
done this before it has happened you go
get a deal you you cobble it together
you get over the finish line you
celebrate but you’ve just signed up to
lose money because what will happen in
12 months is the lender in a higher rate
environment is going to refi the
building because again when the refi
comes up because this is bridge debt
they’re going to re-look at the asset
and maybe you didn’t get the rents that
you wanted or maybe the repairs aren’t
done maybe cap rates are higher they’re
going to be great thank you very much
now send us a check for 100 grand
because we don’t have the same value and
most people can’t then you become a for
seller then you sell to a guy like me
that’s like yeah i’ll take over the
building but i’m not going to give you
what you want 40 cents on the dollar
i’ve done it before so yeah
yeah this is this is coming uh i
strongly suggest if you’re a one rental
at a time family you’re looking at
office commercial uh bridge portfolio
blankets whatever
30-year money
30-year money you hear matt
it’s it’s definitely worth a phone call
because when you do the math just look
at what you’re paying now we’ll pull out
my mortgage calculator you tell me and
we’ll crush that and
numbers don’t lie so yeah do the math
yeah so i expect a lot of you are
looking at these deals please reach out
to steven dow now this weekend uh
because uh
you got to get a file started you got to
at least have the conversations you got
to get a yes or no because he doesn’t
lend anywhere he does doesn’t land
everywhere he doesn’t land on all things
he doesn’t lend in all cities so reach
out now so you have a partner or he can
say sorry i can’t help you fast just
fast no that’s what i ask how do you
want to reach out
s gao at velocitymortgage.com
please leave uh the acronym or wrap
o-r-a-a-t which is one right at a time
the subject line in the body of the
email you can maybe give me a brief
description of your scenario um at the
very least stadium state of where the
property uh is located and then property
type mid fico score desired loan amount
um you know things that they need to
purchase price then i can just kind of
put together the best response and you
know cut down on the back and forth
emails and phone calls and then um yeah
leave your phone number to be the best
one never reach back at so i can call
you just to make a quick phone call
versus a bunch of emails other than that
keep trying i apologize we’re getting a
positive overwhelming response but
there’s only one of me and 24 hours in a
day and i i’ve got stuff but please yeah
i’m i’m calling people back from like
you know late december so far but
everyone’s been very patient and i think
they understood because during that time
it was you know yeah yeah yeah
and recently you know the copic surge
really affected our business as well so
it’s just been a lot of you know kind of
dealing with all the health issues so
thank you for everybody’s patience yeah
and again folks that’s why i’m asking
you to reach out today if you have any
interest you’re shopping you’re just
shopping call them tell them what city
you’re in tell them what you’re looking
at all that stuff just so you get a yes
or no don’t be surprised don’t say hey i
got a great deal but steven can’t help
because it’s a city or a type or a thing
or a widget or whatever it is call
create a file he’s fun to talk to get
ready because he he’s like this with no
caffeine
it is he is just
on so
pretty much almost all hours a day i’m
expecting 10 or 15 people to reach out
this weekend to get uh new file starts
oh no
i’m looking at several already right now
so and and this hasn’t even been posted
yet so it’s a lot of residual because
some of the i think people start to
watch more more of the videos and you
have a playlist on the channel there’s
right there’s probably 50 hours of
material you help you and i helping
people it’s easily easily and no it’s
they’re starting to come around a lot
and so and we’re even getting people
referring people from this channel so
like they’re really wanting to pass out
you know because it’s just the right
information
you help people you do good work good
things happen so i’m happy for you again
you helped me
i appreciate you thanks buddy likewise
thanks