Guest: Bill Ham — multifamily owner/operator since 2005, author of Real Estate Raw & Creative Cash, founder of Creative Cash Academy.
👤 Host: Eric Lindsay — Moonlight Real Estate Syndication Show (built for people with a W-2 or full-time business).
💡 What Bill Actually Did (and Why He Says Don’t Copy It)
✈️ Started as a pilot out of school, read books, and bought a duplex as his first deal.
💵 Duplex cash-flowed ~$300/month; he had ~$10k saved and quit his aviation job.
🧑🍼 At 28, with no kids and no real debt, he still lived on every penny from the duplex—repairs were hard.
⚠️ Advice: Don’t quit your job because a guru said a duplex/fourplex can replace your income. He wouldn’t recommend doing what he did.
🧮 Underwriting the Smart Way (Back-of-Napkin First)
📄 Get the T-12 (month-by-month P&L) or recreate it.
🧰 Use a template; start with the seller’s asking price just to see if you’re in the ballpark.
🏦 Quick loan plug-ins he used “today”: 25% down, ~6.5% interest, 25-year amortization.
📊 Target DSCR ≈ 1.25. If you’re below that, either pay less or borrow less.
⏱️ Spend ~10 minutes to get a go/no-go before deep dives.
🧱 “Actuals” vs “Pro Forma” & What’s Real Value-Add
🧯 Only buying on actuals can make you miss true value-add; calling everything value-add leads to buying garbage.
📉 Rent growth is low to flat in many places—don’t assume tenants can cover underwriting mistakes.
🧪 Example he gave: 60%-occupied asset in a 95%-occupied area with abandoned operations—a case where pro forma made sense.
📈 Where Bill Is Now & His Market View
🏁 Built about 1,000 units, then sold everything ~2 years ago (before rates climbed).
🔎 Deal flow is limited, but he expects distressed sellers/properties to create opportunity.
🧭 If you own now: try to hold; “not a great time to sell.”
🎯 If you’re new: study and get ready—opportunities are coming.
🧠 Creative Financing (Use Carefully)
📝 Two main tools: seller financing (requires clear title) and master lease options.
⚖️ Subject-to/wraps are much riskier on consumer homes; in Florida, missing a payment on a homeowner subject-to can be a first-degree felony.
🏦 Lenders usually won’t allow 100% financing via big seller carries/undisclosed seconds; adding a second after closing without consent is often a loan violation.
📚 Books mentioned: Creative Cash (creative financing) & Real Estate Raw (how to buy multifamily).
🎯 Action Steps — Tailored to You
For Active Investors (W-2 or Business Owners) 💼🔧
✅ Start with what you can personally borrow and translate that into units in your market.
🧮 Run the 10-minute DSCR check (≈1.25) with 25% down / ~6.5% / 25-yr am as a baseline.
🚫 Don’t overpay and expect rent hikes to bail you out.
🧱 Be picky: true value-add is operationally fixable in a strong area—not “distressed = value-add.”
For Passive Investors (LPs) 💤💸
🕵️ Vet operators who underwrite with T-12s, talk DSCR, and avoid “raise rents and pray.”
🧪 Be skeptical of blanket “value-add” claims—Bill noted cases where LPs lost money when plans weren’t executed.
📚 Ask about debt terms, down payment, and whether lender rules allow any creative structure being pitched.
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