Investing in multifamily apartments
Last week, we took a side-trip to look at how our “Secret Sauce” works in REAL TIME. That report, as well as our prior discussions on (1) Evaluating Candidate Properties, (2) Detail-Diving and Making an Offer, (3) Bringing in the Professionals and (4) Applying for a Loan, have been posted to the company website for your reference.
We’ve elected to share our “Secret Sauce” so you can gain a fundamental introduction in to how we operate when considering the purchase of a multifamily apartment property with the help of our private investor community.
Today, we will touch on:
The Down Payment
The Barriskill Investment Group secures non-recourse loans from the lending institution for each of the multifamily apartment projects we bring to the table. A non-recourse loan means that if something unexpected (or horrible) happens, the maximum loss any participating investor can be exposed to is the amount of their investment in that project – only.
Additionally, our properties are individually owned by Limited Liability Corporations (LLCs) registered in the state where the property resides. Interested investors who qualify are granted what is called an “undivided ownership interest” in the LLC – that owns the property. They become a “member” of the LLC. Being a member further protects one’s investment and their overall portfolio. Should that “something unexpected (or horrible)” happen, the maximum loss any participating investor, now a member of the LLC, or their overall portfolio, can be exposed to, is the amount of their investment in that project – only.
(Got questions about this? Give us a call.)
Returning now to the down payment, in today’s financial and commercial real estate environment, it is usual and customary to make a 25% down payment on the multifamily apartment being purchased. (Prior to the 2008/2009 financial crisis, the usual and customary down payment was only 20%.)
To gather up that 25%, the Barriskill Investment Group notifies its private investor community of the investment opportunity. Members interested in learning more request documentation describing the opportunity for their individual review, consideration and decision to invest.
Mentioned earlier in this series, our goal is to help our private investor community improve the financial state of their retirement by receiving predictably consistent cash flow from multifamily apartment investment opportunities. Reply to this eMail or call to discuss how you might qualify to join our private community and participate.
Next week, we will wrap up our “Secret Sauce” discussions with some insight into Closing Escrow.
Our kind regards,
The Barriskill Investment Group
P.S., By the way . . . by definition, investing has associated risks. That’s why it’s called an “investment”. If there were no risks, you would not be able to call it an “investment”. We mitigate and/or minimize the risk we feel we can afford by performing comprehensive due diligence. In our opinion, you should mitigate and/or minimize the risk you feel you can afford to manage the same way – by performing comprehensive due diligence in any investment endeavor you consider.