What does it actually take to close a multifamily deal forty five minutes before wire cutoff on New Year's Eve and save your investors millions in taxes?
In this episode, I sit down with Carl Pankratz, President and Managing Director of Blackacre Commercial and HUD Multifamily Financing Expert who has been involved in over a billion dollars in real estate transactions. Carl is also a Professor at Texas Tech University's Rawls College of Business, a former city councilman, and was recently appointed by Governor Greg Abbott to study the use of land banks throughout Texas.
We get into lessons from the 2008 financial crisis, where the lending market is headed, and why competent operators matter more than ever right now. Carl also shares how he approached one of our recent deals together and what it took to get it closed on December 31st.
If you are newer to real estate and trying to figure out who to trust and how to build the right team, this episode is for you.
Timestamp
00:00 Intro
01:26 Who is Carl Pankratz and how he got into commercial real estate
06:09 Why liquidity and operator quality matter more than ever right now
10:01 How global events and oil prices affect commercial real estate financing
11:49 Why the 10-year Treasury is the number to watch for deal flow
13:32 What the current lending environment looks like for multifamily buyers
15:12 Why 1980s assets are some of the best basis plays in today's market
21:13 How we closed a multifamily deal 45 minutes before wire cutoff on December 31st
26:27 What it means to have the right team in your corner on every deal
28:04 Advice for new real estate investors getting started today
29:34 Why matching your debt term to your hold strategy is so important
31:26 Why competence matters more than projected returns in today's environment
What We Cover
- What the 2008 financial crisis looked like from inside the title industry and what it still teaches us today
- Where interest rates and the lending market are headed for the rest of the year
- Why 1980s multifamily assets are some of the best basis plays available right now
- How to properly prepare for an appraisal and set the narrative before the site visit
- What it took to close a deal on December 31st and save investors millions in taxes
- Why matching your debt term to your hold strategy is one of the most overlooked decisions in real estate
- What new investors should look for before choosing an operator or doing their first deal
Key Takeaways
- When credit stops, it stops fast; liquidity is the thing that keeps operators alive when markets turn
- Having an engineering report ready before the appraisal sets the narrative and protects your deal
- Match your prepayment penalty to your hold strategy, or it will cost you more than you expect
- HUD financing offers 35-year terms and 80 percent LTV in any market, making it one of the best long-term debt options available
- If someone is projecting 25 percent IRRs in today's environment, they probably do not know what they are doing
Connect with Carl Pankratz
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Connect With Me
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