Increased Opportunity: With “Big 47” potentially on the horizon, we’re looking at a promising shift in interest rates that could bring them down, opening doors for more favorable debt quotes. This is a golden opportunity for growth and investment across the board. At JSE Capital, we see this as a game-changer not just for us but for everyone willing to put in the work to climb the ladder. Let’s make the most of it! Caution Ahead: While some may see a slowdown as a setback, I view it as a time to double down on strategy and seize discounted assets. Market instability can bring opportunity for those who stay focused and adapt. JSE Capital is here to thrive, no matter the market conditions, and this could be a chance for others to secure valuable properties at better prices. Just Another Day: Sometimes, steady markets provide the perfect landscape to reinforce your position and ensure your portfolio’s strength. For JSE Capital and everyone else grinding in the commercial real estate space, this could mean the stability needed to plan long-term moves without interruption. Let’s Stay Calm: It might be too early to call, but there’s no harm in staying hopeful and watching for favorable signs. Even in uncertain times, there’s room to build, learn, and adapt. Jai from JSE Capital believes in staying prepared to strike when the timing is right. Keep your strategies flexible, and we’ll be ready to capitalize on any positive shifts ahead.

Queen 👸🏽 @Vera Copeland let’s get those reps in just like you did last night. To achieve these deal requirements and create a robust test for underwriting a multifamily property for JSE Capital, here’s a comprehensive approach. We will: 1. Find a Property: Identify a multifamily property that meets your strict criteria, which includes cash flow from day one and potential for increased rent. 2. Calculate Cash Flow: We’ll use formulas and simple math to check if the property cash flows and determine if it meets the financial metrics. 3. Negotiate: We’ll analyze the deal and figure out the buy price to meet our target metrics. 4. Underwrite and Assess Metrics: We’ll calculate cash-on-cash return, IRR, equity multiple, DSCR, and yield. 5. Set the Debt Structure: We’ll look at debt service, plan capital raise, and allocate LP and GP contributions with an 80/20 split. 6. Plan for Investor Returns: We’ll create a detailed breakdown for investor returns and GPs’ acquisition fees.

@Chu Straughter you got anything good the Queen 👸🏽 @Vera Copeland is ready to go she is a wiz in underwriting 6 mins including the waterfall breakdown equility split with milestones Acquisition fee and the exit strategies.

Great overview on raising private capital! At JSE Capital, we simplify this process by leveraging our fund model, which eliminates the need for complex setups and constant searches for accredited investors. With committed investor capital already secured, we’re fully prepared to deploy it strategically. Our partnership with Deutsche Bank provides us with funding at a favorable 6%, allowing us to pass the entire rate to our investors instead of pocketing any extra. This approach not only simplifies the investment journey but also keeps our investors at the forefront, with clear, structured returns and reduced risk. Documentation and compliance are all handled in-house, ensuring a seamless process for everyone involved! BTW you can speak to my partner @Sherryl Waderker who is our fund manager. She is a genius when it comes to raising capital.

@Scott Mednick cott, you hit the nail on the head. Property taxes and insurance rates are definitely making underwriting trickier, especially in places like Florida. Here are a few strategies I’ve been exploring to tackle these issues: 1. Cost Segregation Studies: By accelerating depreciation on different components of a property, we can reduce our taxable income, effectively offsetting some of that property tax increase. It’s a smart way to keep the tax bite in check without relying solely on rental income boosts. 2. Bulk Insurance or Self-Insurance Programs: For those with multiple assets, looking into bulk insurance coverage or even exploring self-insurance options could potentially bring the premiums down. Leveraging a portfolio of properties might give us negotiating power with insurance providers to lock in better rates. 3. Value-Add Energy Efficiencies: Implementing green energy solutions like solar panels or energy-efficient appliances might qualify for local tax incentives or grants. Besides lowering operational costs, these improvements can sometimes lead to property tax abatements or credits, helping counterbalance those escalating expenses. These might not eliminate the problem, but they could certainly help soften the impact on the bottom line. Thoughts? Let’s keep thinking outside the box! Maybe @Paul Thompson can help with this one.

@John Evans no problem 😉 that all i do is call brokers and underwrite. Brokers are so typical they want to help you to get done. I got you john anytime.

@Dennis McNeely I appreciate the added depth, Dennis! Using T-12 and the rent roll to structure an offer is crucial for accuracy. Projecting future income with tools like Rentometer or Zillow to assess the market rent and vacancy trends can give a clearer path to achieving higher occupancy and, consequently, better cash flow. Your point about maintaining realistic expense ratios (typically 45%) is also essential to ensure projections aren’t too optimistic. Thanks for the detailed breakdown – it’s all about having those numbers to discuss with bankers and partners.

@Garth Gibson Thanks for the insight! So, just to clarify — banks will generally use the current vacancy rate or a realistic one, but won’t go as far as assuming zero percent vacancy? That definitely makes sense for risk mitigation. Appreciate the info!”