37 min listen
ASK MIKE MONDAYS - “Michael, when you first got into multifamily- What was the biggest MISTAKE you made?
FromOld Capital Real Estate Investing Podcast with Michael Becker & Paul Peebles
ASK MIKE MONDAYS - “Michael, when you first got into multifamily- What was the biggest MISTAKE you made?
FromOld Capital Real Estate Investing Podcast with Michael Becker & Paul Peebles
ratings:
Length:
33 minutes
Released:
Jun 7, 2021
Format:
Podcast episode
Description
Michael explains the LARGEST and COSTLIEST mistake he made in buying multifamily: mismatching his mortgage debt with his business plan. The future is not clear- so you must use past experiences to make future business decisions. Michael thought choosing a longer-term fixed rate loan, with the expectations of interest rates rising in the future, would be a prudent business decision. Unfortunately, it was not. His loan was 10 years…but his business plan was to only keep the property for 3-5 years. Rates remained low and the loan came with a significant prepayment penalty called yield maintenance when they went to sell the apartment building. If he had chosen a shorter loan term with a less onerous pre-payment penalty… he would have saved millions. HE WON’T DO THAT AGAIN! Are you interested in learning more about how Multifamily Syndications work? Please visit www.spiadvisory.com to learn more about Michael Becker’s Real Estate Syndication business with SPI Advisory LLC. Please leave us a 5 STAR RATING on iTunes; if you enjoyed this podcast.
Released:
Jun 7, 2021
Format:
Podcast episode
Titles in the series (100)
Episode 6 - Jason Sharpe: Jason discussed how he was able to locate and purchase his first apartment complex in Carrollton Texas. by Old Capital Real Estate Investing Podcast with Michael Becker & Paul Peebles