Rental Property Investor · St Augustine, FL · Member since 2014 · 2k+ posts · 1k+ votes
Hi BP community,
I wanted to share our most recent purchase, a 146 unit mom and pop in Knoxville, TN that we bought in house. For all of you investors out there who say the market is overpriced, you are right. And for those investors out there who say there are deals out there, you are also right.
Henry Ford said it best "If you think you can or can't do a thing, you are right".
The reason for me sharing this purchase is to let everyone out there know that they have the ability to create their own future. This deal took over eight months to close, and we had to negotiate a repair credit that the seller said no to at first. The deal also has an owner financing component to it. The more problems you can solve, the better the deal you are going to get.
We are in this deal at $26,000 per unit, with 33 2 beds, and the remaining one beds. Rents are going to $600 per month for the one beds, with RUBS being added as well.
It is going to take 12-18 months to reposition, a lot of work, and the goal is to refinance it to agency.
In this part of the cycle, please be careful where you are buying, and try to limit your downside risk. We had to look through many deals before we found this one through a referral from a team member.
No deal is better than a bad deal, and continue to network and underwrite deals. When the market does correct, you will be one of the lucky ones to be at the right place at the right time, like Jake & I were back in 2013 with our first purchase.
I wish you all a Happy New Year, and continue to grow as a person!
Flipper/Rehabber · Easton, MA · Member since 2014 · 84 posts · 22 votes
7y
@Gino Barbaro congratulations and happy new year, this is my new year goal for 2019 so it's perfect that I read your post! Aloha and best of luck with it.
Lender · Orlando, FL · Member since 2018 · 173 posts · 66 votes
7y
@Gino Barbaro Congrats and Happy New Year! I am hoping to get into larger multifamily investments and reading this thread has me excited to start making relationships as well as keeping an open mind when looking for deals in any market. Thank you!
Thanks! Don't hope, do. Commit to multifamily and continue your education. It is a long game and there is a lot to learn, but if I can do it, anyone can.
Be more clear with your goal, is it to buy your first multifamily, or to become financially free? You are on the right platform to help with that goal. I wish you a prosperous and happy new year, and to hitting your goals!
Rental Property Investor · Kansas City, MO · Member since 2017 · 104 posts · 33 votes
7y
@Gino Barbaro Gino! Awesome experience. Thank you for sharing !
Would you share some insight on how you are finding your off-market mom and pop owners? Are you doing direct mail and getting lists from a company like list source?
I imagine the response rate for larger multifamily properties would be lower than single family or small multi-family.
Unfortunately, there is no magic pill. We found the deal through our community banker who held the loan that the seller had.
Real estate is all about relationships, and especially multifamily when you get into the larger size properties. Direct mail tends to work better with less sophisticated sellers. You need to meet, interview and speak to as many brokers, property managers, and other professionals in your market. Another great place is to go to live events, seminars and continue to network.
Show them you are a closer, and you will do whatever it is you are going to do.
Rental Property Investor · St Augustine, FL · Member since 2014 · 2k+ posts · 1k+ votes
7y
@Jamaal Gibs
Hi Jamaal,
There haven't been deal in Denver for years (LOL). Cap rates are much lower and it has been a destination for people to move for years. Once the economy resets, there will be opportunities in the market