I quit my CPA Job to buy Large Apartment Buildings

[Brian Adams]

I have always been fascinated with real estate.

I started in 2000 investing in a couple rental houses.

My "AHA" moment came in 2008 to move away from the single rentals and graduate up to large apartment complexes.

My background is a CPA with real estate taxation and forensic accounting experience. I got to see wealth creation happen with real estate as I would advise my wealthy tax clients on various tax strategies to save them money for their own real estate businesses.

One late night when I was working at the office, I was reviewing a client tax file and they were making a boatload of money and building their wealth with apartment buildings.

Have you ever had that feeling like…"if this person can do something I know I can?"

Sometimes this feeling comes from a position of feeling pain. As a CPA and working crazy hours especially during tax season, I was barely home to see my wife and two girls. I was missing the “magic moments”. I knew I had to make a change.

I took to the internet learning about apartment buildings.

I read books.

Any chance I had I was educating myself, listening to trainings in the car, etc. It was a priority to figure out the education side so I knew the nuts and bolts of buying apartment buildings.

Once I felt comfortable, I went out and bought a duplex. Based on the numbers the property was already cash flowing, but one of the units was vacant. I filled that vacancy and the additional rent went directly into my pocket.

It was definitely a cool feeling.

Now granted this was a small property, but working with my tax clients who were making money with large apartment deals, I knew the model worked and it was scalable.

Although I was still working full-time as a CPA, I went from buying the duplex in 2008 to trying to acquire a 130+ unit deal in 2009. The deal at the end of the day didn’t work out. Using my CPA background, apartments are all based on the numbers. The deal just wasn’t good enough for my investors.

In 2010 my partners and I bought a 270+ deal. The deal was bought for $4.5 million and it appraised for $12 million.

In 2011, I decided to quit my CPA job at a top 100 law firm in the world to pursue my real estate business.

Was I scared – you betcha.

Did I have fear – yep.

Did people think I was nuts and crazy – Oh yes.

Getting a real estate business started is tough. But with determination, passion, commitment, desire, focus, I know what my end result would be.

In 2013 I bought a 140+ unit deal for $10.3 million.

In 2014 I bought a 200+ unit deal for $6 million that appraised for $7.4 million at purchase.

In 2015, I will be closing on a 100 to 400 unit deal.

So if you ever want to “graduate” up to buying large apartments, my friends, it can be done.

Just know going in that the road and pathway has challenge. There is no easy button.

I believe that with a clear understanding on your “WHY”, anything can be accomplished.

[Rich Weese]

Interesting read while I'm sitting in Dallas airport waiting for a flight. I don't want anyone reading this post to think it is easy to all this. It reminds me of the late night gurus explaining how easy it is to flip for a profit...

I closed on a sale of a650 unit self storage facility in Bonita Springs Florida. The trouble started before that. Two different buyers UNDER contract fell through. I had already started hunting for upside properties where I could use my 3 million plus in a 1031. I found 2 great properties in Dallas area and had LOI's on both. I tried to dink around with those while I waited for buyer # 3 to close. He did close on March 2. I had done all the prep work and funds went to Starker Services as the accommodator. (arguably the best in the country)

I had been working an analysis of MANY properties and trying to delay as much as possible until I had the funds available. my 45 day period had begun. I have literally worked to exhaustion researching, offering, negotiaiting, arranging inspectors, roofers, foundation people etc.

Oh, remember, you also need to find a lender for a 5-10 million dollar property and feel confident he will do the loan, all prior to your identification date... It is a giant balancing act. 

I sit at the airport and JUST one hour ago, received acceptance of my offer on 3rd property. I have 51 in grand prairie, 164 in mesquite, and 128 in Irving. These 3 should use up approximately 3.1 million and leave 25-50K taxable. The work to this point was incredible and now the financing, inspections and due diligence period starts. Just thinking about this makes me tired again...

In case you didn't do the calculation, my identification expiration date is tomorrow. I could add more info if any are interested, after I take a nap.

Rich