Almost a $200 rent increase for Ohio. No market $$ spent!
Welcome to the HCG Newsletter! We talk about real estate investing strategies. We’ll do a deep dive into the art of unlocking passive income through your real estate.
Additionally, if there are any events that pop up in the tri-state (or even further away), I will make sure to include them in this newsletter. Our success comes from the knowledge we gain along the way, the action we implement and sustaining/growing relationships with others!
Sponsors:
Jared is a commercial real estate broker with Houlihan Lawrence based in Rye Brook, NY! He deals with a variety of asset classes including, multifamily, office, industrial and retail. Both sales and leasing!
Click here to connect with Jared on LinkedIn. Click the logo to see Jared’s website!
Real Estate Term of the Week:
Yield Maintenance: This is a kind of prepayment fee that borrowers pay to lenders, or bond issuers to investors, to compensate for the loss of interest resulting from the prepayment of a loan or the calling in of a bond.
For example, assume a borrower has a $60,000 balance remaining on a loan with 5% interest. The remaining term of the loan is exactly five years or 60 months. If the borrower decides to pay off the loan when the yield on 5-year Treasury notes drops to 3%, the borrower will have to pay an additional $5,495.65 to prepay his debt.
What happened in the last week:
Since closing on the multifamily property in Ohio we have pre-leased one of the 1 bedroom vacant units with no marketing dollars spent! Additionally, we were able to get it leased $196 more than what current units are being leased for. This is an example of having dated units that need renovation. Additionally we are benefiting from loss to lease. Essentially, the seller didn’t keep up with market rents and could have received a bit more in rental income.
Real Estate News:
This isn’t so much news, just a great article I came across. It is about Kyle Matthews. He is one of the top CRE brokers and has a super successful business. The article talks about how he scaled his company from boutique to a substantial player in the CRE space with 800 plus employees/brokers.
If you would like to learn more, click here to see the full story.
Events/Webinars:
I joined a capital raising challenge (day 2 of 30). 30 days among a handful of other people in the real estate space to see who can raise the most for their real estate syndications and funds. To keep the momentum I am livestreaming for 30 days on LI/FB/YouTube.
If you are interested in learning more about real estate and real estate syndication/funds, check it out. I will be covering various topics!
Click here to tune in today at 1:30pm!
Current Deals:
Texas STR Evergreen Income fund:
2-2.5x equity multiple
$4M fund size
5-7 year hold
Distributions paid quarterly
Fund will be buying a portfolio of single family homes in recession resistant markets used as short term rentals
I have a few other things in the pipeline outside of short term rentals, still a bit early to announce. Please reach out if you would like more info!
Please let me know how I can add value to you or your business! I have an open door to my network. As long as you are a good person and enjoy helping others. Let’s connect!