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User Stats

385
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702
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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

27,507
Posts
18,651
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James Wise#1 Classifieds Contributor
  • Real Estate Broker
  • Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH
18,651
Votes |
27,507
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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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!

  • Joshua Dorkin
  • 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
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    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
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    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!

  • Ronald Perich
  • 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!