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User Stats

385
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702
Votes
Philip Williams
  • Rental Property Investor
  • Rockford, IL
702
Votes |
385
Posts

7 buildings 20 units 18 months thanks to BiggerPockets

Philip Williams
  • Rental Property Investor
  • Rockford, IL
Posted

So I decided to give a shout out to bigger pockets. I decided to start investing in real estate 18 months ago at the time I owned 1 condo that had been in the family for years. It was in a nice neighborhood was payed off and cash flowed about 100 a month. I decided moving into multi family was something that I was interested in, over the next year I sold the condo and bought 3 duplexes with a partner who also had very little experience in real estate.

We were moving along but very slowly, I had no idea how to finance any more deals. I had never heard of creative financing and couldn't get a bank to give us anything due to the lack of company history and our debt to income ratios being high. We had no debt besides mortgages but banks wouldn't budge. 

Everything changed about a month ago when I found bigger pockets. I decided to educate myself and started searching for info. I had never read a real estate book or listened to a podcast as of a month ago. Then I found the bigger pockets podcast which led me to the website. I couldn't get enough I listened to the podcast constantly four sometimes five episodes a day. I read every article I could find made a page and started searching alternative methods of funding. 

I currently have four closings set up in the next 2 months. A six unit building owner financed closing 7/15, a four unit closing 8/1 and two duplexes one on 8/7 and the other 8/15. None of this would have been possible without the knowledge I gained on the podcast and on the forums. It took me 16 months to amass 6 units without bigger pockets and 2 months to amass 14 more with it. Just wanted to say thanks to the everyone, those I met at the Chicago REA and those I interact with online. I will continue to update this thread if anyone is interested and post the exact numbers from the individual buildings.

User Stats

795
Posts
767
Votes
Brandon Hicks
  • Investor
  • Avilla, IN
767
Votes |
795
Posts
Brandon Hicks
  • Investor
  • Avilla, IN
Replied

That's awesome that you've put together that many creative deals in such a short time! Keep the momentum rolling :)

User Stats

1,467
Posts
914
Votes
Robert Leonard
  • Investor
  • Lafayette/Baton Rouge, LA
914
Votes |
1,467
Posts
Robert Leonard
  • Investor
  • Lafayette/Baton Rouge, LA
Replied

@Philip Williams you are an example of the power of taking action! Congratulations for your success!

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User Stats

27,412
Posts
18,619
Votes
James Wise#1 Classifieds Contributor
  • Real Estate Broker
  • Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH
18,619
Votes |
27,412
Posts
James Wise#1 Classifieds Contributor
  • Real Estate Broker
  • Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH
Replied

@Philip Williams great story. Congratulations.

User Stats

385
Posts
702
Votes
Philip Williams
  • Rental Property Investor
  • Rockford, IL
702
Votes |
385
Posts
Philip Williams
  • Rental Property Investor
  • Rockford, IL
Replied

Thanks I intend to keep it moving appreciate everyone reading and commenting!

User Stats

2
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0
Votes
Gavin McMorrow
  • Investor
  • Fort Washington, PA
0
Votes |
2
Posts
Gavin McMorrow
  • Investor
  • Fort Washington, PA
Replied

How did you find your deals? What methods for purchase did you use?

User Stats

136
Posts
22
Votes
Gautam S.
  • Real Estate Investor
  • Eola, IL
22
Votes |
136
Posts
Gautam S.
  • Real Estate Investor
  • Eola, IL
Replied

@Philip Williams, Congratulation on your sweet success:)

Like @Gavin McMorrow I would also like to know how you got the leads for the multifamily units?

Also, if you can share the numbers for a 4-Unit for an example, that would be great.

Like List price, Purchase price, Total cost of acquisition (closing cost, rehab etc.), then

how you did the financing ( 25% down etc.), monthly expenses (Tax, PM fee, reserve etc.) and gross rental and net Cash flow...

Cheers!

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16,121
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5,815
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Joshua Dorkin
Pro Member
#2 Questions About BiggerPockets & Official Site Announcements Contributor
  • BiggerPockets Founder
  • Maui, HI
5,815
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16,121
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Joshua Dorkin
Pro Member
#2 Questions About BiggerPockets & Official Site Announcements Contributor
  • BiggerPockets Founder
  • Maui, HI
Replied

@Philip Williams - You rock!  That's so awesome . . . I'm really impressed.  Please keep us posted with how these deals close and keep sharing your story with the rest of the community.  Congrats!

User Stats

9
Posts
1
Votes
Devon Young
  • Ingersoll, Ontario
1
Votes |
9
Posts
Devon Young
  • Ingersoll, Ontario
Replied

Wow that's awesome, and I'm very interested in how you made this all happen as well, as this is exactly what I'm interested in and looking to do myself!

Congratulations!

User Stats

385
Posts
702
Votes
Philip Williams
  • Rental Property Investor
  • Rockford, IL
702
Votes |
385
Posts
Philip Williams
  • Rental Property Investor
  • Rockford, IL
Replied

@Gavin McMorrow@Gautam S. @Joshua Dorkin 

I'll try not to make this response to long lol, but the condo and the first three deals were found off the mls. I had never thought about finding deals any other way. After listening to all of the podcasts it struck me that there are other methods of finding deals. The first deal I found was the 6 unit I found it off of Craigslist under real estate for sale. The next three building I got a lead from one of my workers. I tell everyone I work with in my investing area to keep an eye out for properties, that includes contractors, property manager, plumbers etc.....I let them know what I am looking for and if I purchase a property based off there lead they will receive a referral fee from me. So that covers how I found the deals. 

Here are just some quick numbers the 6 unit was listed for 125k 2-2bd 2-1bd 2 studios. The total gross rents are 3150, I can force a little bit of equity in the form of raising rents to include laundry facilities. There are three garages on the property the former owner used for storage, I can rent these out potentially to tenants, paint change out carpets etc...As for as rehab costs this one doesn't need any immediately. It is fully rented out so the first thing that will be done will be hall paint and carpets. Then as tenants leases expire we will go in and clean up the units, new appliances if needed. Carpet might get ripped up and some type of hardwood put down etc. Oh and we negotiated the price to 110k, and are putting down approx 18% which comes out to 20k and it is owner financed 5 year arm with an option to renew and a 7% interest rate. 

The four unit was listed for 70k they are all spacious one bedrooms rented for 425ea. This was undervalued in my opinion and I estimate the actual value as around 88k. I tried negotiating them down and they weren't willing to budge as they had a mortgage on the property still. Instead of trying to shave a few more thousand off I decided it was wiser to lock up the deal before they decided they should actually list it with a realtor which they definitely should have. This also doesn't require any rehab 3 units are currently rented out this was a family owned investment for the last 15 years so they took much better care of there places than the average owner. They actually live next door to the property.

Hope this story will maybe help inspire someone to take that first step, I was pretty frustrated with the banks before finding the podcasts. They really lit a fire under me to not just walk in get denied then shrug and wait a couple more years can't thank @Joshua Dorkin and brandon enough for the info I have learned!

User Stats

345
Posts
120
Votes
Jeff Valentino
  • Residential Real Estate Broker
  • Winston Salem, NC
120
Votes |
345
Posts
Jeff Valentino
  • Residential Real Estate Broker
  • Winston Salem, NC
Replied

That's great to hear @Philip Williams ! Much continued success.

User Stats

289
Posts
73
Votes
Anthony Aguillard
  • Investor
  • Las Vegas, Nv
73
Votes |
289
Posts
Anthony Aguillard
  • Investor
  • Las Vegas, Nv
Replied

That's great, congratulations.

User Stats

4,456
Posts
4,294
Votes
Ben Leybovich
  • Rental Property Investor
  • Phoenix/Lima, Arizona/OH
4,294
Votes |
4,456
Posts
Ben Leybovich
  • Rental Property Investor
  • Phoenix/Lima, Arizona/OH
Replied

Good for you!

Now - slow down.  You'll thank me later :)

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User Stats

146
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31
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Vince Beusan
  • Laguna Hills, CA
31
Votes |
146
Posts
Vince Beusan
  • Laguna Hills, CA
Replied

Philip Williams what an awesome and inspirational story!! Very happy for you and definitely a result of taking action

Applied knowledge is power, and this is a great example.

User Stats

385
Posts
702
Votes
Philip Williams
  • Rental Property Investor
  • Rockford, IL
702
Votes |
385
Posts
Philip Williams
  • Rental Property Investor
  • Rockford, IL
Replied

@Ben Leybovich  well thank you for the advise but taking suggestions without sound reasoning isn't exactly a smart decision in any situation. Not saying I won't or am not planning on it but if your going to say slow down at least day why lol. 

User Stats

2,770
Posts
3,664
Votes
Aaron Mazzrillo
  • Investor
  • Riverside, CA
3,664
Votes |
2,770
Posts
Aaron Mazzrillo
  • Investor
  • Riverside, CA
Replied

Be careful you don't grow too quickly. Buying apartment buildings is a lot like buying shoes. You don't just walk into the store, grab a pair off the shelf and walk out. You have to try the building on. Walk around and see how it fits. I've seen people with more than 100 units implode because they grew too fast and bought lots of properties wrong. 

You're just getting started. Make sure you're making the right moves so you can play the long game.

User Stats

3,716
Posts
525
Votes
Ramon Jenkins
  • Real Estate Agent
  • Milwaukee County, WI
525
Votes |
3,716
Posts
Ramon Jenkins
  • Real Estate Agent
  • Milwaukee County, WI
Replied

Congrats

User Stats

104
Posts
32
Votes
Jaime Penix
  • Investor
  • Tampa, FL
32
Votes |
104
Posts
Jaime Penix
  • Investor
  • Tampa, FL
Replied

Damn I need to do more BP reading! Good job bro.

User Stats

385
Posts
702
Votes
Philip Williams
  • Rental Property Investor
  • Rockford, IL
702
Votes |
385
Posts
Philip Williams
  • Rental Property Investor
  • Rockford, IL
Replied

Aaron Mazzrillo thanks for the advise, I have certainly considered this. I don't have a day job so I have a lot more free time to research than the average investor. I am very familiar with my market average rents, good areas bad areas etc. my plan was actually to sit and collect rent for a year before expanding anymore. The last three buildings literally fell into my lap and are under contract about 20% of there actual value not arv. So if I felt the need all three could be resold for an immediate profit if I felt I was stretched to thin.

User Stats

31
Posts
3
Votes
Juliette V.
  • Nashville, TN
3
Votes |
31
Posts
Juliette V.
  • Nashville, TN
Replied

Congrats! This is an amazing good experience, and I think it's encouraging. My problem is trying to know exactly what to do with my loan, how to split it up, and where to buy in Nashville area for best ROI.

What are your focusing on..?

User Stats

308
Posts
230
Votes
Giovanni Isaksen
  • Investor
  • Bellingham, WA
230
Votes |
308
Posts
Giovanni Isaksen
  • Investor
  • Bellingham, WA
Replied

Great work @Philip Williams , thanks for sharing. Looking forward to hearing how it all goes.

User Stats

658
Posts
301
Votes
Ronald Perich
Pro Member
  • Investor
  • Granite City, IL
301
Votes |
658
Posts
Ronald Perich
Pro Member
  • Investor
  • Granite City, IL
Replied

@Philip Williams Congratulations on your success! I hope you continue to share your insights at BP!

User Stats

385
Posts
702
Votes
Philip Williams
  • Rental Property Investor
  • Rockford, IL
702
Votes |
385
Posts
Philip Williams
  • Rental Property Investor
  • Rockford, IL
Replied

@Aaron Mazzrillo I am focusing on buy and hold at the moment and by at the moment I mean the next several years. I have never had any flipping or wholesaling aspirations but of course if the opportunity presented itself I would pursue it. 

User Stats

105
Posts
28
Votes
Joe Demonte
  • Contractor
  • Chicago, IL
28
Votes |
105
Posts
Joe Demonte
  • Contractor
  • Chicago, IL
Replied

@Philip Williams  Very inspiring! Joining and interacting on BP is like you have opened pandora's box of information! Ha!

Congrats to you on your new investments. Keep us posted on how things work out. 

Which Chicagoland REA did you go to if you dont mind me asking? 

User Stats

385
Posts
702
Votes
Philip Williams
  • Rental Property Investor
  • Rockford, IL
702
Votes |
385
Posts
Philip Williams
  • Rental Property Investor
  • Rockford, IL
Replied

@Joe Demonte  Hey joe it was actually organized by a bigger pockets member @Brie Schmidt I'm not sure when the next one will be but i'll pass along the info!

User Stats

63
Posts
16
Votes
Ernie V.
  • Rental Property Investor
  • Milwaukee, WI
16
Votes |
63
Posts
Ernie V.
  • Rental Property Investor
  • Milwaukee, WI
Replied

Congrats! Keep it up!