My first ever 44 Unit MF apartment closed in Dec. 2020

My first ever 44 Unit MF apartment closed in Dec. 2020

New to Real Estate · New York, NY · Member since 2019 · 234 posts · 264 votes

I’m sharing a great news! My Real Estate Journey made at night and weekend, allowed me to close my first deal!

December 2020, I officially closed my first investment real estate deal with my partners. It’s a 44 Unit Multifamily Apartment in Lawrence, KS.

I feel like I can write a book about it, but will try to keep it as simple as possible.

Little Intro of myself: Late 30’s, Full time W2 Lawyer in NYC. Father of 2 girls. Did not own any investment property prior to this 44 Unit. (Not even a single, never done any flipping)

Limiting beliefs I crushed: No way I can invest outside of my back yard, How can I trust others, You need lots of money to start, I should start small like single or duplex before going to multifamily. Education is a cost.

How I crushed these limiting beliefs: Through right education, Not listening to the naysayers. Surrounding myself with like minded people. Being connected with mentors and right partners, Relentless action taking. Griding persistently, Trying to add value to the team, Falling in love with the process.

Some of the milestones

Late 2019: I set a goal that I’ll close my first RE deal in 2020. I joined Bigger Pockets. 

Self-education through Bigger-pockets and found David Greene's Out of state investing book. Now I felt more confident about investing out of state. By listening to Michael Blank saying he was considered as a newbie when he started MF despite his single family flipping experience, now I decided to go to MF directly skipping single/duplex. By listening to Grant Cardone saying "look at a bigger deal that justifies scalability, now I decided to look at more than 10 Unit as my first deal. 

In the begginng I was little ashamed to call myself a Multifamily investor without having any, and didn’t know how to put myself out there and get connected with like minded people. - I sought advice from Bigger Pockets, and somebody encouraged me to be just transparent (Thank you John Casmon). I decided to believe in myself and to just be myself.

March 2020 - Realized Self-education is not equivalent to taking actions. I was passively absorbing the information. Joined a Mentorship Community / Mastermind Group, Started Real Education, Started self-reflection as to who I am and how I can add value, Started putting myself out there looking for partners. This is when Pandemic shut down happened. 

May 2020 - Connected with my current partners and started analyzing deals

June 2020 - After reading Joe Fairless' Syndication Book, Started co-hosting a bi-weekly Virtual Meetup in NY regarding multifamily investing, and massive virtual networking started. Covid couldn't stop me.

July 2020 - Became a Co-Host of Multifamily and More meet up - KC chapter with my partner.

August 2020 - 68 Unit Apartment LOI Accepted

September 2020 - 68 Unit under Contract / 44 Unit LOI Accepted

October 2020 - 44 Unit under Contract

December 11, 2020 - 44 Unit closed (JV). (68 Unit closing got pushed a little - Syndication)

Feb. 2021 - 68 Unit expected to be closed within this month.


A few things I learned
: Right education. This is critical. But to get the right education, you need to be guided by people who are more experienced than you are. It can be people from bigger pockets, or mentorship program. Right partnership. You need to surround yourself with highly motivated like minded people. Stay away from people who drain your energy and positivity. Make sure you work with those who's interests are aligned with yours. Those who share same work ethic and philosophy. Massive Action Taking. I can't emphasize this enough. Do it. Meet people. Underwrite deals. Talk to the brokers and lenders. Practice your pitch. Last but not least by no means. Fall in love with the process. It's a long process. So enjoy it and be persistent, and patient. You will see the result. 

Yosef 

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Rental Property Investor · Bronx, NY · Member since 2011 · 193 posts · 322 votes
5y

Yosef!!!!! The part about "self-education is not equivalent to taking action" .... Man!!!! Not enough people realize that, just take that first step bc otherwise you'll never progress and your story symbolizes just that! Great way to lead by example and I'm so proud to say I know you and am part of your extended fam! Great job and can't wait to see what the rest of this year holds for you!

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  • Real Estate Consultant · Federal Way, WA · Member since 2012 · 74 posts · 13 votes
    5y

    Congratulations!

  • New to Real Estate · Buffalo, MN · Member since 2020 · 5 posts · 3 votes
    5y

    @Yosef Lee

    That's an amazing first deal!

    I love the way you highlighted the beliefs that were holding you back and how you crushed them.

    I'm still in the 'new to real estate' phase and working on getting myself the education and tools to do my first deal, so hearing from someone just ahead of me that did such a large deal is really cool!

  • New to Real Estate · New York, NY · Member since 2019 · 234 posts · 264 votes
    5y
    Originally posted by @Cortney Arenstein:
    Originally posted by @Yosef Lee:

    March 2020 - Realized Self-education is not equivalent to taking actions. I was passively absorbing the information. Joined a Mentorship Community / Mastermind Group, Started Real Education, Started self-reflection as to who I am and how I can add value, Started putting myself out there looking for partners. This is when Pandemic shut down happened. 

    May 2020 - Connected with my current partners and started analyzing deals



    Which mentorship group/mastermind? And how did you "connect" with your current partners? I am sitting where you were in 2019. I know I want to go straight to MF. I know I MAY have to go out of state. I have zero experience yet but have read all the things (literally ALL THE THINGS) and now I need to find those partnerships and mentorships/masterminds. I have looked at a few "coaching" programs but so far they want $3k--which I would pay if I KNEW they are going to deliver hands on training but then...they typically try to sell me on passive investing in their current projects or buying a turnkey. I'm happy to be an LP if I can have visibility access to the process with a mentor to actually LEARN what is happening, but being an LP is NOT my goal. I would happily give away big chunks of equity and/or forego typical syndication fees for the chance to JV with an experienced person on something like what you have just done. (I even have access to quite a bit of private money already) But where are these mentor people/programs?

    I have recently agreed to host the InvestHER meetup here in Houston. And I will start attending the multifamily meetups (we have tenjillion). But as far as what comes next--I'm stumped! "Hey big time investor person--wanna let me do ALL the grunt work for you and let you take MOST of the profits just as a way for me to learn this process?" Seems like a not great pitch... :) But maybe I'm wrong?

    Courtney! I would love to have a chat with you. I want to answer all your questions and address the concerns as much as I can and my knowledge and limited experience extends. Do you do FB or LinkedIN? I'm more active on FB but I use both. Find me @yosefyourbrosef

    Let's have a zoom call. Too much to type to answer your Qs. Lol Yosef

  • New to Real Estate · New York, NY · Member since 2019 · 234 posts · 264 votes
    5y
    Originally posted by @Saraya Thornburg:

    @Yosef Lee love this! As someone who just keeps reading and studying I feel like I needed to hear this 😬 thank you for sharing and congratulations!

    Hi Saraya! Thank you for the encouragement! Yes let's take actions! Hope you crush 2021! Brosef

  • New to Real Estate · New York, NY · Member since 2019 · 234 posts · 264 votes
    5y
    Originally posted by @Ebony Sheckles:

    @Yosef Lee Yosef thank you for sharing such an inspiring story and journey! I too wanted to jump directly into multifamily unit investing and was hesitant. You give me energy to trust my instinct and continue to think bigger!

    Hi Ebony!!! Glad to meet a fellow attorney investor! Yes! I shared that concern but now you see that it's possible! Trust in your instinct and judgment, education and take actions, you will see the results! Brosef

  • New to Real Estate · New York, NY · Member since 2019 · 234 posts · 264 votes
    5y
    Originally posted by @Andrew Hartman:

    Thanks for this inspiring story. Seems like I am where you were a year ago. Finding it hard to get enough free time to do much with a W2 job and two girls myself. I’ll start with David Greene’s book as you mentioned and hopefully can kick start similar action towards closing on a similar deal!

    Thanks for sharing.

    Andrew!! Man been there and done that. It's extremely hard to spare some time when you have W2 and two girls (Just like me man). Read that book, and break out of your comfort zone of not investing out of state. But don't just read it. After that, attend meetup, make connections, pick a market and start talking to the brokers. Do this process at least once. You will see the next steps. If you need to talk, any time connect to me man. We will get on a zoom call and I'll share more in details. Brosef

  • Member since 2019 · 7k+ posts · 4k+ votes
    5y

    Yosef how do you select the property manager ? is it same as the previous owner property manager ? how's the inspection report being done ?

  • New to Real Estate · New York, NY · Member since 2019 · 234 posts · 264 votes
    5y
    Originally posted by @Billye Sanford:

    Phenomenal @Yosef Lee! Brains and hustle. I can't wait to see where you go from here.

    Hey Billy!! Thank you I appreciate! Let's crush 2021!

  • New to Real Estate · New York, NY · Member since 2019 · 234 posts · 264 votes
    5y
    Originally posted by @Lee Yoder:

    Great story @Yosef Lee and congratulations! You took action and you took the right action. You took good advice from some great people like @John Casmon. You're off and running now!

    Thank you Lee I appreciate the encouragement!! Yosef 

  • New to Real Estate · New York, NY · Member since 2019 · 234 posts · 264 votes
    5y
    Originally posted by @Ezichi Oha:

    Very inspiring story. Congratulations

    Thank you Ezich! I appreciate that!! Yosef

  • New to Real Estate · New York, NY · Member since 2019 · 234 posts · 264 votes
    5y
    Originally posted by @Leticia Fernandez:

    @Yosef Lee

    Congrats on your first deal, so inspiring to a newbie like myself. Stuck in the self education phase, I need to take action! Thanks for sharing!

    Thank you Leticia!! Yes, self-education is critical part of it but because I was busy reading and listening podcast, I thought I was "Doing" something. Pick a market and call brokers. Go to virtual meetups. Let's take some massive action and crush 2021. Yosef

  • New to Real Estate · New York, NY · Member since 2019 · 234 posts · 264 votes
    5y
    Originally posted by @James G.:

    @Yosef Lee

    Awesome story man. How did you find your mentorship program. I wanted to get into commercial Multifamily as well but struggled and settled for a residential properties.

    Hi James! I'm more than happy to share my experience on Zoom or call. Connect with me by BF or LinkedIn. Look for @yosefyourbrosef

  • New to Real Estate · New York, NY · Member since 2019 · 234 posts · 264 votes
    5y
    Originally posted by @Jon Ladas:

    Congratulations! Love that you dove right in to a large prop but on top of that out of state! A lot of my investors hate the idea of going out of state, I personally love the idea!

    Best of luck going forward! 

    Thank you Jon! Yes I was one of them. Because it is not easy to crush that limiting belief. Though eduction and engaging with right people, I was able to crush that. Yosef 

  • New to Real Estate · New York, NY · Member since 2019 · 234 posts · 264 votes
    5y
    Originally posted by @Wale Lawal:

    @Yosef Lee This is very inspiring and Congratulations! 

    I see pure hustle, 100% dedication, and power of partnership playing out here.

    I can't wait to read more success stories from you.

    Keep winning man.

    Thank you Wale, what you said means alot to me. It was not easy at all indeed but it can be seen as if I was lucky. =) 

  • New to Real Estate · New York, NY · Member since 2019 · 234 posts · 264 votes
    5y
    Originally posted by @Scott Johnston:

    I love the dedication and pushing forward not even letting a pandemic stop you! You will do great things!

    Thank you Scott, I appreciate your encouragement! Yosef 

  • New to Real Estate · New York, NY · Member since 2019 · 234 posts · 264 votes
    5y
    Originally posted by @Ken Naim:

    @Yosef Lee Hi Yosef, the original post doesn't look like it got updated. You might have to add it as a reply. Thank you

    Hey Ken, it was added to the original post. I see that BP doesn't allow the original post to be edited after certain time period. Anyway, I'm copying and pasting it here for you. =) 

    Per @Ken Naim's request, I'm adding some details about the deal. It was a seller direct off market. C class property with some deferred maintenance in C area. Seller initial asking price was $2M and we negotiated it down to $1.825M. We did 80% LTC from a local community bank. Loan terms are 4% / 25 AM / 18 Mo IO / Upfront Tax & Ins. We got Interior/Exterior Rehab Reserve of about $250K. Over 90% Economic Occupancy. During the Inspection, it revealed some issues with Plumbing, mold, Mildew, Termite. The seller took care of these before closing. Also, Roof and HVAC system were very old, so one of my partners negotiated with the seller and got $100K credit from Purchase price. Walk in 1 yr CAP rate is over 8 %. Avg. Rent is approx. $150 - $200 / Month lower than surrounding apartments. Recently a lease was renewed without doing any work and we were able to raise $60/month. For another vacant unit, we did some light renovation with new paint and new carpet. For that unit we were able to raise $200 / month. So we tested the market, and it proved. Our plan is to raise the rent to the market rent for the next 2 years, and then cash out refi, and keep the property for the generational wealth!

  • New to Real Estate · New York, NY · Member since 2019 · 234 posts · 264 votes
    5y
    Originally posted by @Benjamin Haberman:

    @Yosef Lee Congrats! This is awesome. Very inspiring. When you mention it is a seller direct off market. How did you find the deal?

    Thank you Benjamin for the encouragement. One of my partners friend found the owner and brought the deal to us. There was no broker involved. Yosef 

  • New to Real Estate · New York, NY · Member since 2019 · 234 posts · 264 votes
    5y
    Originally posted by @Brianne Leichliter:

    @Yosef Lee you're doing what I dream of!  How amazing and for your FIRST DEAL!  This is fantastic.  I would love to talk to you more about your experience and how to GO BIG!

    Hey Brianne thank you for the encouragement! I would love to connect for a zoom call and share any information I have. Please find me on FB or LinkedIN @yosefyourbrosef 

    I have a good friend who lives in Dayton. She moved from Cincinnati 

  • Investor · Maryland & Florida Resident · Member since 2021 · 9 posts · 12 votes
    5y

    @Yosef Lee Congratulations, Yosef!!! That's inspiring! Hoping/planning to buy my first multi-apartment deal this year! 

  • New to Real Estate · Mineral Springs, NC · Member since 2021 · 5 posts · 3 votes
    5y

    @Yosef Lee I would love to get in touch with you , I am in your shoes! At this very moment

  • New to Real Estate · Member since 2020 · 5 posts · 3 votes
    5y

    Very cool and inspiring story. WTG!

  • Developer · Los Angeles, CA · Member since 2017 · 16 posts · 14 votes
    5y

    Yosef, would you share the part of the deal you made with your investors, and what your personal ROI looks like?

  • New to Real Estate · Member since 2020 · 5 posts · 3 votes
    5y

    @David Shikiar agreed. Would love to see some numbers

  • Rental Property Investor · Fort Mill, SC · Member since 2014 · 161 posts · 132 votes
    5y

    Thank you Brosef for sharing your success, definitely inspiring. Let's Make It Happen!

  • Investor · Lake Worth, FL · Member since 2016 · 233 posts · 140 votes
    5y

    @Yosef Lee Great work on this deal. The numbers look great. Thank you for sharing. In two years you'll have a 3.5m property easy.

    How did you settle on Lawrence KS and find and off market deal there from NY?

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