My First Multifamily Deal
Consider the first deal I did in multi-family.....
I invested $350,000 to buy a $1.95 million, 48 unit complex. I can't lose my money as it is invested in the property. Because of leverage, I was able to buy a $1.95 million asset that produced $40,000 of positive cash flow a year while I waited for appreciation.
39 months later, I sold the property $5.2 million resulting in a total profit before taxes of $3.7 million. That's a 10X return.
$350,000 Down $1,950,000
Sold $5,200,000
Payoff Debt $1,600,000
Remaining $3,600,000
Cash Flow $130,000
__________________________
$350,000 turned into $3,730,000
Today I oversee 7,068 units with a total of $1.5 Billion AUM.
Moral of the story......
To create wealth you can't just score once, you must be able to repeat it (this is the power of scaling).
-GC