Every month I host the Indianapolis Multifamily Investor Meetup, a learning and networking group open to all experience levels. The featured speaker for June was none other than Justin Goodin, Founder & CEO at Next Level Equity. After investing in single family homes, Justin discovered a more powerful way to build generational wealth and create time freedom for himself and his family: investing in multifamily apartment buildings.
During the two-hour virtual meetup, Justin talked to us about his experience in superior ways to invest capital, including how to underwrite like the banks, as well as answered questions from the group on underwriting best practices.
If you weren’t able to join us for this month’s meeting – or if you want a refresher on the awesome lessons we learned – below is a punchlist of key takeaways from our conversation:
- Mentors and masterminds are key to success and to keep growing
- Bridge loans are short-term, one- to three-year financing options that are interest only
- Unlike agency financing, you can finance your purchase price AND construction costs with a bridge loan of up to 75%-80% loan to cost
- Bridge loans are great for short term financing, unstabilized properties, and for when you want to finance capex (capital expenditures). However, they don’t meet the requirements for conventional financing, or give time to find long term permanent financing.
- Creative financing options are going to become more important with expected capital gains increases.
- 3 common types of creative financing include installment sale, master lease option, and seller financing.
- And this month’s fun fact: Freddie Mac won’t loan on a property with a gravel parking lot.
Let me know if you have June meetup takeaways of your own that stuck with you!
And for those of you that missed the June meetup but want to join us for the next time: we meet every second Wednesday of the month from 6-8 PM EST. Keep up with the group and upcoming events on our Meetup page here.
