Our guest on the show today is Charles Seaman. Charles currently serves as Managing Member and Lead Acquisition person of Three Oaks Management LLC, in which he actively works to locate high-performing multifamily real estate deals throughout the Southeast region of the U.S. Charles has 14 years of commercial real estate experience in New York City.
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He’s been focusing on syndication deals since mid-2017 and recently acquired a 92-unit deal in Georgia and has underwritten approximately 200 deals during this time. Charles gained some great experience in his recent 92-unit deal and this is what we dive into in today’s episode. Here, Charles takes us step-by-step through this process giving valuable tips and insights on everything from value-add, rate of return, hold period, and deal structure. This episode is packed with practical steps and sharp wisdom on pitching to brokers, raising capital, expanding your network of passive investors, and how to better prepare for the market downturn rumors.
Key Points from This Episode:
- Discover how Charles came across his 92-unit deal through a sponsor.
- The underwriting and due diligence process of the 92-unit deal.
- Implementing your value-adds in year one to see a 10% cash-on-cash return.
- Why your annualized rate of return should be at 60% to attract investors.
- Learn more about cardinal properties and what makes these buildings attractive.
- How to manage a property that has value-add through operational efficiency.
- Renting washers and dryers to tenants for an additional charge per month.
- The benefit of having a 2-5 year hold period and the 506(b) structure of the deal.
- Raising capital and the importance of building new networks with passive investors.
- The types of professionals to approach when building your passive investor network.
- Pitching the deal-criteria to brokers and why B or C properties are ideal.
- Why you should be spending just as much time looking for investors as you do for deals.
- Preparing for the market downturn by being conservative with your projections.
- Build your brand and get your name out there by joining your local Meet Up.
- Keeping in touch with your investors on a regular basis and why it matters.
[bctt tweet=”It’s normal that you have to look at a hundred deals before you really find out what makes sense. — @CSeaman316″ username=”Whitney_Sewell”]
Links Mentioned in Today’s Episode:
About Charles Seaman
Charles Seaman currently serves as Managing Member and Lead Acquisition Person of Three Oaks Management LLC, in which he actively works to locate high-performing multifamily real estate deals throughout the Southeast region of the U.S. He’s responsible for performing all of the company’s initial underwriting and analysis of these deals, which ultimately determines whether or not the deal will be a good fit for the company. He’s also involved with contract negotiation and capital raising to make sure that the deals close. He then remains involved with the deal after closing to manage the asset so that it performs in a manner that provides investors with exceptional returns. Charles has 14 years of prior experience working for a commercial real estate investor in NYC. During this time, he assisted the investor with acquiring deals, obtaining financing for them, and managing and leasing them after the deals were closed. While there, he also assisted the investor with the management of numerous other businesses that he owned, including a plumbing company and several bars and restaurants. During his spare time, he also actively traded stocks from 2009 to 2014.
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