Michael Becker doesn’t think small! He describes how he overcame his fear and went from 9 to 1,000 units in just 12 months using other people’s money.
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Michael Becker is a Senior Director for Old Capital where he provides funding for commercial real estate. In his spare time he has become an investor himself, and owns about 1,000 units with another 200+ to close in the next 45 days.
He and his team focus on light value-add multifamily properties (Class C/B) in the Dallas Fort Worth area. He raises money out of Southern California and finances exclusively with Fannie Mae debt (he'll talk about why). He’s very familiar with all aspects of the transaction process, including underwriting and marketing, financial analysis, due diligence, and preparation of marketing materials as well as processing and closing.
We will have lots to learn from Michael.
Here are some of the Topics We Cover
- Why it's important to leverage your current skill set to launch your real estate career.
- The importance of adjusting your mindset from 9-5 to entrepreneur, dealing with the uncertainty and being uncomfortable.
- Why you need to THINK BIG to succeed.
- Why you need to transition from using your own money to raising it from others as soon as possible.
- How a good partnership can change your entire investing career.
- A GREAT tip for finding off-market deals.
- The difference between successful investors and those who never get started.
- How to recognize a good deals: what’s a good cash on cash return?
- What’s the difference between “good” and only OK debt and why Michael uses Fannie Mae debt exclusively.
- Michael’s personal success habits.
How to Connect with Michael
You can email Michael at mbecker at spiadvisory dot com or give him a call at 214.675.2793. You can also check out his LinkedIn profile. Or even better, leave a question or comment for Michael below!
What questions do you have for Michael?
Michael talked about cashing out with Fannie Mae by doing a Supplemental on the original loan. He mentioned he keeps the original loan in place and cashes out after 2-3 years after the purchase. Can you ask him about the specifics of this Fannie Mae program? Formal appraisal?
Did he really say these Fannie Mae loans are non-recourse loans? Is the entity obtaining the loan or is the loan under his name as the syndicator? This sounds like good debt loans if you can get them…sounds like Michael had a leg up on everybody else since he was/is a banker.
Any info on these questions/comments would be helpful.
Thanks! Good show! More meat and potatoes on this one Mr. Blank!
Kyron
Kyron
Yes the Fannie Mae apartment loans are non recourse. They require that the property is owned by a single purpose entity (commonly a LLC) the deal sponsors to be what they call “Key Principals” or “KP” and sign what is commonly referred to as a “Bad Boy Carve out” (you can Google this for a lot of details).
When we get a supplemental loan its a co-termous 2nd lien loan, meaning you don’t pay off the existing loan and the new loan has a common maturity date.
To qualify for a Fannie loan the property needs to work (at least 90% for the past 90 days) and the KP’s need to have previous multifamily experience.
There is more to it than that and if you want to have a more detailed discussion please call me at the office 214-675-2793.
Best
Michael Becker
Michael & Michael –
Great interview, truly appreciate the content and the info contained.
Can you detail your due diligence process once you get a target property under contract? For a deal over 100 units, how do you properly complete unit inpsections, deep dives on all financials, etc?
Thanks!
What are your thoughts?
Excellent interview and very inspiring. Keep em coming.
You certainly zero in on the precise questions that truly clarify things for all of us listening. These kinds of interviews inspire me to imagine what my future could look like. Thanks for sharing. Interesting how Michael had one bad day and that is how he got into investing in commercial buildings. In my journey I’ve noticed what seems negative at first is just the gift that shifts you in a positive new direction!!! So in the end its all good. ?
Thanks Kristen!