Deals don’t always go smoothly. That’s just the reality of the syndication game. But it’s not all that often that we get operators talking about deals that go awry. While these difficult deals can put operators in vulnerable positions, they also serve as excellent lessons for future endeavors.
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Our guest today, Feras Moussa, who was recently on Episode 446 as well, joins us to share how he handled his own nightmare deal. He takes us through some of the deal specifics as well as what went wrong, from a lender that was not playing ball to a higher than anticipated level of deferred maintenance. We learn how Feras ultimately resolved these issues along with the vital lessons that he has learned from it. Once again, Feras’s insights are invaluable because we could all find ourselves in a sticky situation. Tune in today!
Key Points From This Episode:
- Bridge loans: what they are, why they are powerful tools and some common mistakes.
- What Feras would have done differently with his lender on this deal.
- Why Feras decided to self-fund the deal rather than wait for the lender.
- The biggest lessons that Feras took away from this difficult deal.
- The amount in the reserve account is deal-specific.
- Buying deals differently: the way that Feras is preparing for the anticipated downturn.
- Why Feras holds deals funded by agency debt longer than bridge debt ones.
- Three ways that Feras has recently improved his business.
[bctt tweet=”Used correctly, bridge debt is very powerful. — Feras Moussa” username=”whitney_sewell”]
Links Mentioned in Today’s Episode:
About Feras Moussa
Feras Moussa is an entrepreneur at heart with a tech background. Feras graduated from the University of Texas with a Computer Science degree and worked at Microsoft straight from college. Feras later quit Microsoft to ‘bring tech to industries that lack it.’ Through this, he found his passion for real estate. Feras quickly built a portfolio of rentals, completing nine closings in his first 12 months. After having seen the results of rentals, he later decided to scale up into apartment complexes. Here, he met Ben and started Disrupt Equity, a company focused on multi-family acquisition and investments for investors. Founding this company, he leveraged his strengths in tech to better identify quality investments for investors. Feras has helped raise millions of dollars for multifamily syndication.
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