The Capital Stack
We Are Thankful For…
We are thankful for our new and repeat investors who trust us with their hard-earned money. In the last 2 years alone, we have raised ~$8.5M of investor capital across many different projects. We look forward to sharing in much success in the future.
We are thankful for our property management team. They work hard week after week to sign new leases, coordinate move-ins, renovate units, clear up delinquent payments, and insure the properties we own are enjoyable places to live.
Favorable Interest Rates-
We are thankful that in 2021 & 2022 we were able to purchase 12 new properties with an average interest rate around 4%. Interest rates are now fluttering around 6-7% and, on the rise, we are grateful we took advantage of competitive lending terms when we had the chance.
The Capital Stack & It’s Readers
We are thankful for this newsletter that provides us with an outlet to share our experiences in multifamily real estate. We are thankful for the readers who have followed along since our original article (ALMOST A YEAR AGO!) as well as the new subscribers we get each week. We are especially grateful for the readers who provide productive feedback, encourage others to follow along and those who share our newsletter to their social platforms. THANK YOU ALL!
We are thankful for all the residents that enjoy calling our properties home and treat them like their own. Combined our properties provide housing for over 250 people.
We are thankful for each podcast we have been invited to be a part of. It’s always a pleasure to talk real estate and share ideas with other likeminded individuals.
Link here to all the ones I’ve been on: https://sheffercapital.com/media/
Cost Segregation Providers
We are thankful for the cost segregation providers we get to work with. We completed cost segregation studies on nearly all our properties this year. These studies create a depreciation schedule so that we can front load tax loses. This has saved us and our investors a vast amount of tax dollars each year.
We are thankful for the sellers that we have purchased property from. Without their willingness to sell it would be impossible for us to do our jobs. Each one we have worked with has been extremely friendly and easy to work with.
We are thankful for social media and the impactful connections we have made. We are most active on twitter but also have made many powerful connections through Instagram and LinkedIn. We have formed partnerships and became friends with numerous people whom we met through social media.
Deal Partners & Potential Deal Partners
We are thankful for each individual we have formed a partnership with. Some partners have found us a deal and some help us manage a deal. We are also thankful for the 20+ motivated individuals who have voiced their interest in multifamily real estate as well as their intention to find us a property to purchase. We look forward to seeing that materialize.
We are thankful that we have been able to rely on the same smart and efficient attorney for the entirety of our career. He saves us a lot of trouble and headache by being good at his job.
We are thankful for the lenders who give us favorable terms and share our vision for each property we purchase. Establishing mutual trust with a tight knit group of lenders provides us piece of mind when trying to purchase a property and insures us the most favorable loan terms.
CPA & Bookkeeper
We are thankful we have a CPA as well as a bookkeeper that we can trust. We have been working with our CPA for many years now and he does a great job completing our taxes. Our bookkeeper is the newest addition to our team and one we should have added a long time ago. She is very organized and saves us hours of time each week.
We are thankful we found a reliable contractor who has now worked with us on 3 different projects. We look forward to working with him on many more projects in the future. Finding quality contractors who you can trust is one of the most difficult parts of this business.
Major Market News
There’s an article by HW Media that says “buyers across America are calling off the house hunt and finding multifamily apartments.” The article attributes this to high home prices and interest rates around 7%. According to the article multifamily construction is also at a halt because of heightened interest rates. The article seems to think that the combination of the two will continue to lead to a housing shortage for the next year or two.
Check out the full article for more interesting information:https://www.housingwire.com/articles/the-historic-multifamily-construction-boom-is-already-fading/
Tips and Tricks
Build a team of people that you can trust – All the people mentioned above contribute in some way to each deal being successful. Without each person being an expert in their role it would make life much more difficult. For anyone looking for any of these service providers, we are always happy to refer ours over!