RE: Walked away from 118 unit apt complex

[Jason Monroe]

So @Sterling White

Did this video on why he walked away from a 118 unit complex that found it's way into my promotional mail folder 

At the end of the video I was very confused as I didn't find the tips worth while 

- When I have walk throughs for multi family buildings if there are deferred maintenance or gross neglect then all of those things would get identified and other specialists would be brought to bear with the general understanding that the initial offer price will be reduced.

- I thought that with a 100+ unit building the key buying principals thing is location, proximity to job centers, unit mix, and access to mass transit. 

- Beyond that you want to ensure that you can stay as close to 95% or whatever the variance is occupied.  Which would have you looking at absorption rates, economic growth trends, median income etc... 

- Value add opportunities ALWAYS have some sort of challenge. That's why a small team would buy it as opposed to an institutional investor.

- Doing a complete inspection of one building usually takes 3 - 5 hours depending on the configuration even if you just spent 1 hour per building which is a kick the tires kind of cursory look would equate to 10+ hours to include the common spaces 

When you're talking about commercial deals there is a lot more than just I didn't like the color, it doesn't have crown molding, and the roof showed signs of significant wear. 

There were other material failures that caused this to blow up since usually commercial deals are longer affairs. It's unfortunate this video didn't include the substance only fluff that might make people start to think the distance between 4 units and 100 isn't that really that large.