4. Your Biggest Business Partner with Julie Peterson

11/27/22 • 37 min

Who is your biggest business partner in apartment investing? Your lender! In this episode, go behind the scenes with Julie Peterson of Old Capital to discover how profitable deals get successfully funded.
LISTEN FOR THIS

60-75% of funds to purchase an apartment complex come from lenders.
Lending brokers are doing their due diligence to only fund apartment deals that will be profitable.
Lending brokers are like traffic controllers who keep track of what is going on through strong relationships with general partners, real estate brokers, banks, etc.
A lending broker will find the right loan for each specific property and vet the general partners you’re investing with to make sure they have a good track record and boots on the ground — helping to protect the investors’ interests.
The general partners bringing the deals to investors use their own money to secure deals, spend time finding the deal, underwriting the deal and building relationships to put the deal together.
After lenders provide funding, they continue to monitor how the property is being managed.

ABOUT JULIE PETERSON
With 30 years of Real Estate transaction experience, Julie Anne Peterson knows how to place debt, invest passively, syndicate as a general partner and capital raise for Commercial Multifamily properties. She specializes in helping new investors understand the debt requirements and connects them with sponsors who will take them to close. Julie is also the host of the wildly successful weekly ZOOM @ 8pm EST platform that brings industry professionals in to help educate new investors.
QUOTES
“We are your biggest partner in this deal. We're bringing the largest amount of capital to it. So, you want to have a relationship where you know, like and trust, not only the people that you're bringing in as partners, but also the lender.”
“We’re going to give you an understanding of: What is the debt? What is your business plan? How do you marry those and figure out if this makes sense from a product perspective?”
CONNECT WITH JULIE
Website: oldcapitallending.com
Julie Anne Peterson on Facebook, LinkedIn, Instagram
ZOOM @ 8pm EST: Free networking with professionals in the industry - Register Here

CONNECT WITH US
Learn more about passively investing in apartment buildings:
Website: hansenholdings.com
Free Webinar Training: hansenholdings.com/webinar
Schedule Call with Matt: Schedule Intro Call
Facebook, LinkedIn, Instagram

60-75% of funds to purchase an apartment complex come from lenders.
Lending brokers are doing their due diligence to only fund apartment deals that will be profitable.
Lending brokers are like traffic controllers who keep track of what is going on through strong relationships with general partners, real estate brokers, banks, etc.
A lending broker will find the right loan for each specific property and vet the general partners you’re investing with to make sure they have a good track record and boots on the ground — helping to protect the investors’ interests.
The general partners bringing the deals to investors use their own money to secure deals, spend time finding the deal, underwriting the deal and building relationships to put the deal together.
After lenders provide funding, they continue to monitor how the property is being managed.

Previous Episode

3. Leave it to the Pros to Maximize Profits with Luke Leins

Unravel the mystery of how we decide the profitability of an apartment investment. In this episode, Matt and Luke use an apartment deal under contract as a case study to demonstrate the value of a property management company.
WHAT TO LISTEN FOR

Luke’s company, ResProp Management, is using technology to provide more advanced property management services.
In addition to your own due diligence, it’s best to have a property management company assess the deal because they have more access to data than your average investor.
Your property management company should thoroughly evaluate all ways to increase cash flow.
Due diligence from your property management should be strong and include a full walk through of every unit — taking inventory, doing a full lease audit, looking at financials and getting quotes from service providers.
ResProp has about 15 people that work on each deal: procurement, accounting, marketing, construction, staff interviews, etc. They also do a lot of pre-sourcing and relationship building with vendors so there are no delays in renovations.
The property management company should work closely with the deal’s asset manager to make sure the business plan is staying on track.
Luke explains his search for good investments and finding apartment buildings to be the best for his financial goals.

QUOTES
“We know we have firm bids. We have all our vendors out there. We've got estimates. We know exactly what the capital requirements are with the deal.”

“It's like, man, if you can find a good sponsor that you really trust and do deals with, you can do really well. So, it's been a lot of fun seeing that.”

ABOUT LUKE LEINS
Luke Leins is a Senior Director at ResProp Management and oversees Third Party Management growth and expansion in the Florida market. Luke's background includes development, acquisitions, private-equity raising, and third-party management. Luke's strategic approach is to partner with ownership groups looking to develop multifamily portfolios by assisting with deal sourcing, underwriting, capital planning, and market research. He also works on strategic management changes to maximize property values for owners. Luke holds a BSBA from Colorado State University and is a Certified Commercial Investment Member (CCIM) and Accredited Investment Fiduciary (AIF).

CONNECT WITH LUKE
Website: respropmanagement.com

Next Episode

5. Who's Got Your Back? with Matt Sutika

Discover the incredible benefit of having your investment insured! In this episode, Matt Sutika from Obie insurance brokerage gives a fascinating, in-depth look at large multifamily apartment insurance and highlights the important protection it provides to investors.

LISTEN FOR THIS

In order for insurance brokers to provide accurate quotes, there will be a lot of analysis and communication between all the parties involved during the acquisition phase of purchasing the apartment.
It helps to have an insurance broker like Matt who understands the apartment buying process from start to finish and can speak the language.
The lender in an apartment deal hires consultants and their responsibility is to make sure the insurance meets the requirements of the lender. This is a good thing from an investor standpoint because this consultant is making sure the asset is covered correctly.
A benefit of using an insurance broker, as opposed to deal sponsors trying to source it themself is that you will have experts in the field dissect every line item and guarantee you are getting the right insurance for your specific property.
Matt gives a brief overview of all the types of insurance that is needed. The general rule of thumb is having enough coverage to offset all your assets.
The main takeaway from this episode is that your investment is insured.

QUOTES
“So the good thing, from the investor standpoint, is anytime you're dealing here, you have this consultant who is making sure this asset is covered correctly.”
“I'm sure at this point after your audience just heard “taxes and insurance,” they are just super excited of what we're gonna chat about today. But hopefully if they're listening to this, they'll understand that these are recession-proof necessary evil items, if you will. It's part of the overall deal and there are benefits to having some knowledge in these particular areas.”
ABOUT MATTHEW SUTIKA
Matthew Sutika is the Chief Insurance Officer for Obie, an insurtech startup that is leading the industry through tech integrations and broker partnerships to deliver a simple and transparent process for real estate investors to obtain insurance. Matt is an award-winning entrepreneur and business owner in the multifamily and insurance sector.
CONNECT WITH MATT
Website: obierisk.com
Email: [email protected]
Find Matthew Suitika Facebook, Instagram, LinkedIn & Twitter

Better Returns: Invest Like a Pro - 4. Your Biggest Business Partner with Julie Peterson

Transcript

Welcome to better returns and I've got one of my close personal friend here Julie Anne Peterson she's the senior director at old capital which is a real estate lending broker company she's no also known as the first lady of Lending she's 30 years of real estate transactional experience she knows how to place debt invest passively and syndicates as a general partner and also raises capital for commercial multi-family apartment properties she specializes in helping new investors understand the d