​Waving goodbye to flipping and hello to apartments.

​Waving goodbye to flipping and hello to apartments.

Investor/Syndicator · Cincinnati, OH · Member since 2014 · 470 posts · 599 votes

I started my investing career in single family buy and holds March 2012. We bought up as much as we could figure out how to. Over the past 4 years we were able to build our portfolio to 24 units. As the market continued to recover we shifted our strategy in April of 2015 to fix and flip.

Fix and Flip fit our company very well. With a background in contracting, I have a full understanding of the process of taking a bad house and making it desirable. Couple that with our REI knowledge, a real estate license, and a strong work ethic, we were able to come out 1 year later with 16 flips under our belt with close to 3 million dollars in sales.

As we wrap up our last flip this week. We look forward to next week when we will be closing on a 42-unit apartment. I enjoyed each flip, but man was it hard work! The profits were good, and allow us the ability to purchase this 42 unit building next week. Instead of buying a fancy car or big house we are pushing much of those profits back into this new apartment building.

If it weren’t for the flips we would not have the ability to buy this multimillion-dollar apartment building with out raising money from private investors. Now because of the success we had in flips we are able to put our own money up to purchase the 42 unit, prove our ability in the multifamily space with our own money. Which will lay the groundwork to later raise money to do even larger deals.

The past 4 years has been a snowball effect. I can’t wait to see what the next 4 bring!

This is why I am excited to be waving goodbye to flips and hello to apartments. 

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Investor · Jacksonville, FL · Member since 2016 · 97 posts · 90 votes
10y

@Jered Sturm

Great story and thanks for sharing. It's like playing Monopoly...trade in 4 green house for one red hotel! Congratulations on your REI success and on buying many more "hotels"!

@Chris Washington check out Jered's story. He's over in your area.

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  • Rental Property Investor · Arlington, TX · Member since 2012 · 788 posts · 640 votes
    10y

    Congrats!!! That is quite an accomplishment. Will you keep your SFR rentals? I always tell people willing to hear that flipping is great but rentals gives me true freedom.

  • Tzvi BalsamPro Member
    Investor · Brooklyn, NY · Member since 2016 · 226 posts · 45 votes
    10y

    You make it sound so simple.

  • Los Angeles, CA · Member since 2016 · 55 posts · 4 votes
    10y
    Jered Sturm Congrats! That sounds like a solid plan. I look forward to reaching that level as well. Kudos! 👏🏻
  • Investor · Jacksonville, FL · Member since 2016 · 97 posts · 90 votes
    10y

    @Jered Sturm

    Great story and thanks for sharing. It's like playing Monopoly...trade in 4 green house for one red hotel! Congratulations on your REI success and on buying many more "hotels"!

    @Chris Washington check out Jered's story. He's over in your area.

  • Colorado Springs, CO · Member since 2016 · 214 posts · 58 votes
    10y

    That's pretty awesome, congrats on the success!

  • Investor · Jackson, OH · Member since 2014 · 64 posts · 20 votes
    10y

    This is the type of story I could read all day long. Congratulations on your successes!

  • Bulawayo, Zimbabwe · Member since 2015 · 1k+ posts · 253 votes
    10y

    Inspiring story, especially your background in contracting working in your favor for the flips.Congratulations on the move up to apartments and thanks for sharing @Jered Sturm

  • Littleton, CO · Member since 2014 · 195 posts · 72 votes
    10y

    Congrats on your Apartment Bld. purchase.  Was it on the market and does it need any improvements or repairs that will increase your income with it?

    My Father always bought 12-16 unit Buildings as he did not want to have to have a leasing office onsite.  Most of them he did not keep long as he bought problem buildings at a large discount. 

  • Commercial Investor · Ocala FL · Member since 2012 · 74 posts · 21 votes
    10y

    Hi @Jered Sturm Great story thanks for sharing!

  • Investor · Mason, MI · Member since 2014 · 151 posts · 152 votes
    10y

    It IS adult Monopoly!  We too flipped our houses into apartment units.  We did it over time, but never the less, the down payment for our 20 unit building came from flipping two houses.  It is a tried and true formula!  Much success to you and welcome to the world of Multi-family!

  • Investor/Syndicator · Cincinnati, OH · Member since 2014 · 470 posts · 599 votes
    10y

    Thanks Everyone!

    Once I close on the Apartment I will write another post explaining the numbers and details of that purchase. 

  • Investor · Austin, TX · Member since 2013 · 933 posts · 1k+ votes
    10y

    Jered

    Great story. One idea to accelerate your growth is to use OPM for the eqity raise. Yes, the path you are about to take is one way to do it but its a slower way. I would encourage you to continue down the path you are on to gain credibility and experience, but why use all your own money. Eventually you should take a look at syndication.  You can still maintain complete control as GP, hire property managers that you oversee, value-add just like you did w your flips, but w a bit longer hold periods, say 3 to 5yrs, create all this value w smart renovations, improved property mgt, then sell and do again. 

    Theres no reason you couldnt buy a few 100+units per year once you build a reputation using OPM. 

    Again, great progress but want to give you some ideas to think about in how the big players are thinking about it. My coach, who also lives in Cincy, controls $56m in apt properties and he has done this in less than 5yrs. Using his own money to do this would have taken perhaps a lifetime.  Using OPM greatly accelerates your progress.

  • Investor · Cincinnati, OH · Member since 2013 · 2k+ posts · 1k+ votes
    10y

    @Jered Sturm congrats again and very much looking forward to our cincy meetup this month where you outline your lessons learned from closing on the 42 units. 

  • Investor · Edmond, OK · Member since 2016 · 20 posts · 7 votes
    10y

    Congratulations @Jered Sturm! Your success story is a great source of inspiration for me! I'm hoping to build a snowball effect as well, I'm just about 4 years behind you! I just closed my first duplex and now find myself as a general contractor learning the ins and outs of rehab. You built a strong foundation which has helped accelerate your success. I'm doing the same by starting slow and filling in the gaps in my skill set before pushing ahead. My goals for the rest of this year - BRRR this Duplex and complete 2 flips. Thank you for sharing your story - wishing you many successes in the future!

  • Investor · Cincinnati, OH · Member since 2013 · 2k+ posts · 1k+ votes
    10y

    @Jered Sturm did the closing happen yesterday?!

  • Ada, OK · Member since 2016 · 3 posts · 1 vote
    10y

    Great job ! Thanks for sharing .... Learning a lot from this posts ! 

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