Syndicator of Large Apartment Buildings · Glen Mills, PA · Member since 2009 · 1k+ posts · 1k+ votes
I am happy to report that today I closed on a 240 unit apartment complex in Atlanta, GA that I bought for $9.4 million and it appraised for $9.9 million. Capital raise was $3 million and my investors are super excited!!
Real Estate Investor · Littleton, CO · Member since 2013 · 197 posts · 77 votes
10y
@Brian Adams
Congratulations! Would you mind sharing some details, rents, debt service how you put the deal together? Thanks in advance and great to see you getting deals done.
Professional · Atlanta, GA · Member since 2016 · 12 posts · 2 votes
10y
@BrianAdams Congrats on the acquisition. Do you have any issues managing out of state? How often do you physically go to check on the property. Just curious as I saw you were based out of Philly.
Syndicator of Large Apartment Buildings · Glen Mills, PA · Member since 2009 · 1k+ posts · 1k+ votes
10y
@Mark Hill, thanks. As an out of state owner I am very active in my assets.
I speak with my management company at least once a week. I review the weekly reports and depending on the asset class and if we are doing any major capex project, I visit the property monthly or at least quarterly.
My deals are all 100+ units and I engage the services of a 3rd party management company. The most important thing I have found when managing out of state and I guess even when the asset is in your own backyard is to communicate often and set clear expectations on what you are looking to accomplish with the deal so everyone is on the same page.
I haven't yet found where a deal goes exactly as planned. There will be course corrections over time and the best way to adjust quickly is to ensure there is a shared vision.
Investor · Whitttier, CA · Member since 2015 · 405 posts · 110 votes
10y
@Brian Adams Thanks for sharing this success story. I saw that you are looking for more investors for the next deal. I had a few questions.
Does the capital invest need to come from a private person or can an entity be used to hold capital interests; are investors receiving a monthly dividend/return? Are investors purchasing equity in the property or shares in an investment fund,i.e. how is title held; are there terms, 12 month-24 etc.,cash out options with capital + interest retrieval?
I am happy to report that today I closed on a 240 unit apartment complex in Atlanta, GA that I bought for $9.4 million and it appraised for $9.9 million. Capital raise was $3 million and my investors are super excited!!
Congrats Brian!
That seems like a very steep price tag for, I assume, Class C/B? But cap rates are pretty low in many markets just now. In Oakland, were seeing cap rates @ just 3%.
What's your return forecast return for the project?
Syndicator of Large Apartment Buildings · Glen Mills, PA · Member since 2009 · 1k+ posts · 1k+ votes
10y
@Davon Lowery, to answer your questions, for deals I have done before the funds have come from individuals, entities like an LLC, self directed IRAs.
For most deals cash flow checks are sent out quarterly.
The investor is buying units in the LLC and the title is held by the LLC that purchases the property. None of the investors are listed on title.
The life cycle of my opportunities are 3 to 5 year holds and generally the exit is a sale, but I have multiple exit strategies such as a refi or cash out refi to the investor. Each deal is unique.
If you haven't already done so, make sure you put some details about your closing in this forum.
One quick tip and something that I do, now that you closed and not sure if you found this deal via a broker relationship, but make sure you create a press release, letter, email or some announcement and send to all your broker connections, prospective investors and other people in your business database.
You are now a closer and brokers want to work with closers.
More deals will come to you faster since you got it across the finish line. Investors also want to work with someone that is proven.
Investor · Honolulu, HI · Member since 2016 · 362 posts · 93 votes
10y
Very inspiring to read posts like these. I hope to one day own a MFH with more than 16 units. Learning through everyone here at BP will get me there. To your success my friend, cheers!
Suwanee, GA · Member since 2016 · 48 posts · 4 votes
10y
@Brian Adams Do you have a minimum unit requirement? I've been looking into MF recently (trying to leave SFH) and found a 33 unit complex that can be converted to condos or can be left as rentals. I work and live near the perimeter of Atlanta and it's a sold market (job, family oriented, new developments..). The asking price is 2.9 Million. Would you be interested in working with someone local to Georgia?