How I bought 2 apartment buildings in 2 weeks!

How I bought 2 apartment buildings in 2 weeks!

Charles A.Pro Member
Rental Property Investor · Jacksonville, FL · Member since 2015 · 208 posts · 282 votes
I was that guy that was buying one or two duplexes a year over 5-6 years. That worked well on the cash flow and financing front. Then I started listening to a podcast by someone on BP. (Can’t mention his name because BP may delete this post) This guy kept talking about “the law of the first multi family (apartment complex) deal”. At first,I thought it was some superstitious nonsense. But I kept listening nonetheless. I also thought I’d need to go the syndication route to ever experience that law in my own life.Huge downpayment,multiple investors et al. Anyway, What I’ve found out is if we are determined enough,we will move mountains. So I pulled out all the dead equity that existed in all my duplexes in multiple cash out refys between May-July 2017. I put the entire $200k into a grade B 18-unit deal in a class A neighborhood in Cleveland OH. That deal closed in September 2017. This last month of July,2018,I closed on 2 small apartment complexes within a space of 2 weeks! A grade B 12-unit in a class C neighborhood of Jacksonville FL and a grade C 16-unit in Cleveland Heights,OH,a class B neighborhood. All the details and every last nuance of this crazy twin deal will be specifically detailed on my next blog post in the members’ blog section. I’m not a designated BP blogger,so you probably won’t find it “featured”.I will however link to it as a comment to this thread once it’s published. So,stay tuned. The law of the fist deal is real,folks! I’m living proof. So just do your first deal first!By hook or by crook. Finally,to the owner of that podcast,(you know yourself): Send me a PM.I’d love to come on your pod to tell your lucky listeners how right you are! And how awesome!! CA.
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Gino BarbaroPro Member
Rental Property Investor · St Augustine, FL · Member since 2014 · 2k+ posts · 1k+ votes
8y

@Charles A.

The law of the first multifamily deal is MOMENTUM. Once you close your first deal, you're in the game and brokers and the entire community will take you seriously. Congrats on the deals.  J Scott says that you either own zero deals or many deals. Very few investors only buy one deal.

Now it's time to scale and seek out private money or continue to Refi & Roll

Gino

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  • Investor · Glen Carbon, IL · Member since 2013 · 40 posts · 18 votes
    8y

    Congrats Charles.  Looking forward to the details.

  • Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes
    8y
    @Charles A. Explain in detail the law of the first multifamily deal
  • Accountant · Jacksonville, FL · Member since 2016 · 52 posts · 24 votes
    8y
    Congrats on the deals! Would love to hear more about the specifics once you've published the article. Trying to get where you are one day, thanks for the inspiration!
  • Guillermo NadalPro Member
    Flipper/Rehabber · Marietta, GA · Member since 2018 · 108 posts · 77 votes
    8y

    Great.

  • Specialist · Plainville, CT · Member since 2015 · 478 posts · 389 votes
    8y

    @Charles A.- You can mention other people on here and give them props... you just can't promote yourself.  For example- @Joe Fairless- I listen to your podcast and it's the best ever!  haha

    Nice job with your deals... keep going and go even bigger!

  • Self Employed Entrepreneur · Clovis, CA · Member since 2015 · 13 posts · 3 votes
    8y

    That's awesome. Please give us more details how you found this deals, cash/cash return & how you financed it and who where the lenders especially they are in different markets.  If you don't mind sharing.  Thanks

  • Charles A.Pro Member
    OP
    Rental Property Investor · Jacksonville, FL · Member since 2015 · 208 posts · 282 votes
    8y
    Chris Tracy Thanks for clarifying. It’s @Michael Blank. My BP phone app is still not even letting me give him a mention... :)
  • Charles A.Pro Member
    OP
    Rental Property Investor · Jacksonville, FL · Member since 2015 · 208 posts · 282 votes
    8y
    @Vincent Galvante Trust me,I will hit you with so much detail your head would spin.lol I’ll post my blog article here in a couple of days. Everything from how I found the deal to how I built my out of state team to how I obtained financing and where I found my downpayment. Just stay tuned.
  • Investor · Nashville, TN · Member since 2018 · 21 posts · 7 votes
    8y

    Good stuff Charles. Keep inspiring.

    DJ

  • Developer · Houston, TX · Member since 2015 · 1k+ posts · 1k+ votes
    8y

    Congratulations to you, @Charles A.

  • John KosterPro Member
    Investor · Valley Village, CA · Member since 2012 · 147 posts · 142 votes
    8y

    Nice!  I'm ooking forward to the details.    

  • Specialist · San Francisco Bay Area · Member since 2018 · 221 posts · 160 votes
    8y

    @Charles A. Congrats!  Curious, since you're in FL what made you want to invest in Ohio?

  • Charles A.Pro Member
    OP
    Rental Property Investor · Jacksonville, FL · Member since 2015 · 208 posts · 282 votes
    8y

    @Matt Ward

    Deals were getting very tough to come by in my local market.

    So I ventured out of state.

    It was easy to choose Cleveland because I previously lived there for 5 years and know the neighborhoods very well.

    I also had privileged knowledge of the tremendous billions of dollars in investment that has poured into the downtown development over the past 5 years.

    So while many data junkies on BP kept referencing the city’s “negative population growth”,I was diving in head first.

  • Specialist · San Francisco Bay Area · Member since 2018 · 221 posts · 160 votes
    8y
    Originally posted by @Charles A.:

    @Matt Ward

    Deals were getting very tough to come by in my local market.

    So I ventured out of state.

    It was easy to choose Cleveland because I previously lived there for 5 years and know the neighborhoods very well.

    I also had privileged knowledge of the tremendous billions of dollars in investment that has poured into the downtown development over the past 5 years.

    So while many data junkies on BP kept referencing the city’s “negative population growth”,I was diving in head first.

     Interesting, hope the development turns the population decline around!!  I’m a “data junkie” in your words LOL 

  • Charles A.Pro Member
    OP
    Rental Property Investor · Jacksonville, FL · Member since 2015 · 208 posts · 282 votes
    8y

    When we focus a lot on “population decline”,it sometimes turns into an excuse to not do deals.

    In a major metro of more than a million people,population decline is not something I lose sleep over.

    As long as you buy close to major employers,you’ll always be fine.

    What I will never do is to buy an apartment building in small towns or suburbs with population of just a few thousands...

    I think that’s a far greater risk.

    And people who complain about Cleveland’s “population decline” have been known to come on BP to post a deal they just closed in Macon GA for example...

    I’ve been to Macon.

    That’s not even funny.

    :)

  • Matt CrawfordPro Member
    Rental Property Investor · Maryville, MO · Member since 2017 · 77 posts · 38 votes
    8y
    Congrats @Charles A.!
  • Member since 2018 · 3 posts · 2 votes
    8y
    Congrats Charles, look forward to hearing the details you plan to post. Best of luck!
  • Gino BarbaroPro Member
    Rental Property Investor · St Augustine, FL · Member since 2014 · 2k+ posts · 1k+ votes
    8y

    @Charles A.

    The law of the first multifamily deal is MOMENTUM. Once you close your first deal, you're in the game and brokers and the entire community will take you seriously. Congrats on the deals.  J Scott says that you either own zero deals or many deals. Very few investors only buy one deal.

    Now it's time to scale and seek out private money or continue to Refi & Roll

    Gino

  • Charles A.Pro Member
    OP
    Rental Property Investor · Jacksonville, FL · Member since 2015 · 208 posts · 282 votes
    8y

    Thanks @Gino Barbaro

    I listen to your podcast with Jake too...Wheelbarrow profits.

    You know what,you live in my neighborhood.

    We should grab coffee sometime so I can meet the legend in the flesh ? :)

  • Gino BarbaroPro Member
    Rental Property Investor · St Augustine, FL · Member since 2014 · 2k+ posts · 1k+ votes
    8y

    @Charles A.

    I am in St Augustine, any time!  You have the ability to multifacet your business and you should

    Hit me up and let's MIH!

    Gino

  • Rental Property Investor · Louisville KY · Member since 2018 · 36 posts · 13 votes
    8y
    @Charles A. Congrats on your deals. I’d love to know more about Jacksonville. I have looked at that market hard and can’t find anything. I want to be there because my son lives there but I find caps to be extremely low, almost Miami-like.
  • Lee RipmaPro Member
    Rental Property Investor · Prairie Village, KS · Member since 2015 · 2k+ posts · 2k+ votes
    8y
    @Charles A. @Michael Blank is the person who I have heard talk about this. It’s coming true for me too!
  • Charles A.Pro Member
    OP
    Rental Property Investor · Jacksonville, FL · Member since 2015 · 208 posts · 282 votes
    8y

    @Lee Ripma

    Thanks for mentioning @Michael Blank.

    The app is now letting me mention him too ;)

    He’s a key factor in how and why I was able to do this.

    Thanks Mike!

  • Specialist · Louisville, KY · Member since 2017 · 166 posts · 154 votes
    8y
    @Gino Barbaro I heard your podcast with J Scott just today. Fascinating guy, great podcast. 💪
  • Rental Property Investor · Nashville, TN · Member since 2015 · 102 posts · 129 votes
    8y

    @Charles A. good stuff man. Congrats!

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