Congratulations! I just closed on my first duplex last week and already craving for the next deal. The goal is 100 units in the next 5 years!
So proud of you... Ive been doing the small stuff and now starting to learns the ropes and possibilities of doing commercial real estate... Thank you for this post.. very inspiring
Originally posted by @Heath M. :
Congrats! I just closed on my first deal, a 4 Plex. My goal is 10, thinking I need to up my goal...lol
No you shouldn't up your goal, it will up by itself, it's a very common thing, lol
I remember when I first started with my first 3 unit, I was like I need to purchase 9 units by the end of the year, then when I bought a few month later a 6 unit, I was like ok, now I need to buy 30 by the end of the year, and so i went on.... and I totally forgot that I first had in mind only 9 units per year. Just be aggressive, and it will flow by itself..
Congratulations!!!! Great Job! I am ready to hear your story on the BP Podcast. Lets go!
Wow...Well done Brandon!
Indeed you reached a major milestone.
This is truly inspiring, and you idea of posting it in the starting out section is excellent.
Good luck and waiting to hear when you reach 200...
@Brandon Penn what a great success story! Thank you for sharing!
I just joined this site and came across this post - what motivation! Congrats!
Awesome. Glad to see some good stuff happening in Erie
Do you have a niche/location you look for?
Wow, I'm completely humbled by the amount of replies I have received on this post! Thank you everyone for your very kinds words. I don't know how to tag people individually so I will just try to answer everyone's questions with this reply. If I miss anything or anyone just want to talk more feel free to send me an inbox message!
1. How did I get the deal?
-This 70 unit deal I actually aquired from my employer. A couple years ago I took a 15-20k pay cut to leave car sales and go be a property manager for a local investor that I greatly respected and had 350 units. through the last couple of years I have helped him to grow first to 500, then 700, and now he is getting close to 1,000. As he is expanding into the larger complexes he does not have the interest or time for the smaller multi-units. He sold me this 70 unit deal on a land contract. I actually didn't have to come in with any money down, but I look at it as the 40k that I gave up from my other job over the last 2 years was my down payment on this deal.
2. How much was it per door?
-This particular deal was 22k per door. Honestly it was a little pricey for the conidtion and area that they are in, but it was 100% financed by the owner which makes it a phenomenal deal for me.
3. What is the return?
-My cap rate is about 16%. My net operating income is about 262k after accounting for vacancy, utilities, maintenance etc. My annual debt service is 183k leaving me with a proffit of around 79k per year. It will be paid off in 15 years and at that time i will see a huge increase in the cashflow.
4. Was multifamily always my goal?
-I had always wanted to get a 2-4 unit to live in and then move into the next one, rinse and repeat. My wife at the time did not like that Idea so we just went with a single family house. I had never planned to be an investor with a bunch of multifamily though until about 5 years or so ago. I just wanted to own my houses, and rent them out when I went to my next one to build a retirement fund.
5. My thought on a podcast?
-I would love to do a podcast. I started listending to bp about 6 months ago and love all the information I have learned. I truly thought I knew most of what there was to know about real estate investing. While I do know most of what the podcasts have touched on, there is still a ton of information that I had no idea about. Also different points of view about different sides of investing that I had not thought about before. You truly don't know what you don't know.
6. What's my next goal?
-At the moment I am just trying to stabilize the 70 units I bought. about 20 of them were vacant with a lot of work needed and we are almost done with all the repairs. My short term goal is to be fully rented by the end of June. The next project I would like to work towards is converting a school into a community hub. Erie has experienced a lot of economic hardships, especially with the school system. This has caused many of the schools to close. I am currently talking with a few different people about converting one of these school into a central community center. We will have communal living spaces, supportive services such as work ready and daycare, along with activities for children and youth.
7. What is my background?
-Well it is a much longer story so we will cut it down to I was first a real estate agent. I kind of fell into a niche working with investors and realy loved all the mechanics of real estate investing. I then went to sell cars because I wasn't making any money and was going through a divorce. From there I became a property manager and have been doing that for the past 2.5 years.
8. Where do I buy?
-I stick with my home town of Erie, Pennsylvania. There is a ton of opportunity with buy and hold investing in this town. I would like to look at other areas in the future, but for now Erie is where I buy everything.
9. Do I have an LLC?
-YES! I actually have 3. I do believe it is essential especially where I live to work from an LLC. I have a couple different partners, and have different LLCs set up with each of them.
Again, thank you so much to everyone, and if you want to talk more feel free to send me a message!
@Brandon Penn congratulations! That is awesome!
This is great congratulations!! I have a goal to acquire 100 units as well. I am a new investor and I’m still on the hunt for deals #1. It’s great to see you accomplish this it definitely inspired me to keep at it.
@Brandon Penn Congratulation brother! I’m happy for you..
@Brandon Penn that’s epic!!
Wow. I am really pumped by this news. How old are you? I am 33 and just getting educated with hopes of starting in real estate as soon as possible.
Can you mentor me lol we’ll split my deals 50/50
congrats on your success, hearing stories like yours help to give new investors like me starting out hope and encouragement that it can truly happen for anyone.
@Brandon Penn i Congratulations! Looks
Like you’ll need to update your profile. Thanks for the inspiration.
What an amazing accomplishment. Bask in your glory on this one! Congratulations.
@Brandon Penn this is fantastic. Very inspiring.
@Brandon Penn congratulations! That’s a lot of hard work and dedication!
@Brandon Penn congratulations to you that is great to hear. Did you concentrate on one particular area ?
I started about 8 months ago and have 6 units . Trying to push along to find the deals that cash flow..
@Brandon Penn congratulations Brandon, this has been encouraging to me!
Hey @Brandon Penn
Where did you meet and how did you start working with/for the investor whom you eventually purchased the 70 unit apartment from?
Your story got us all fired up friend haha!
Originally posted by @Christa S Rickard :
That is awesome! Congratulations. I plan to close my first deal this year and I'm really excited.
I right there with you Christa. I'm ready to get in the game and start my journey too :)
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