RCRE – Getting Creative with Bill Ham

Mike Taravella and co host Will Coleman interview Bill Ham, Chief Operating Officer at Broadwell Property Group.

Bill has been focusing on newer assets (primarily 1985 and newer)

Not focusing on major capital expenditures that don’t have any ROIs (Plumbing)

Bill is also focusing on long-term holds

Bill anticipates a 15-20% reduction in multifamily valuations

Collections in April have been consistent with the previous month but is anticipating a slowdown in May

The reserves required for financing is very costly equity and ruin cash returns

Bill focuses on 2 creative financing options: seller financing and master leases

Seller Financing requires zero or minimal existing debt, market rate interest, interest-only term, 15-20% down, 18-24 month terms.

Instead of using down payment, leverage capital expenditures in an escrow.

Master leases have more risks because you are a renter and the landlord may not accept your purchase price

Expert Pro Tip: Focus on your competency and become more proficient with them.

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