Diligence pays off: Lessons learned closing a 224 unit Apartment

5 Replies

Recently I closed on a 224 unit apartment in Memphis, TN. The apartment community is a strong B class value add opportunity. I wrote 47 LOI's and underwrote over 200 apartments to snag 1 deal! That's just part of today's market. Learn about my lessons learned while taking down our latest apartment community.

This was a fun deal from the start! The best part is we traveled to the property 1 month after closing and there are 14 renovated units all under budget, with rents averaging $25 more than we projected. The property started at 89% occupancy on May 14th and is now at 95.5% occupancy 35 days later. 

Check out the lessons learned here: 

https://www.biggerpockets.com/member-blogs/10145/85607-diligence-pays-off-closing-a-224-unit-apartment

Originally posted by @Taylor L. :

Well done Todd! Persistence pays off. How did you backfill those unfulfilled investor commitments? That's always frustrating

 We over raised, so it was easy to fill. It’s always a bit frustrating when people back out, but it’s expected, so sponsors need to raise more money that what is needed. 

Originally posted by @Andrew K. :

@Todd Dexheimer you are a beast! Thanks for sharing the details on this deal. Incredible example for all of us to follow—you committed to a goal and kept at it. Awesome!

-Andrew

 It can get very frustrating in this market! It’s a hot market and a lot of people are overpaying for deals, so you find yourself on the outside the majority of the time.  

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you