All Forum Posts by: Andrew Davis

Hey @Melvin German iii - welcome to BP!

Do everything @Nathan Gesner recommends and you will be well on your way to a successful REI journey.

I wish you all the best!

@Kateryna Kilinich - I'm a little late to the party, but lot's of great advice here.

Yes, you are correct, small multi-family in Orlando right now is hard to come by... a crappy duplex just went up for sale next to my second house hack at a price I can't believe.

But, as @Matt Leber says (and did - I helped them buy that house!) a house hack does not have to be a multi-family. You can live in one room and rent out the others, and then the following year buy another single family, rent out your first home and repeat the process.

The good news about Orlando is rents are CRAZY and likely to stay that way.

Also agree with @Nick Cooley - "don't wait to buy real estate, buy real estate and wait"

I just posted about why not to sit out the market if you want a numbers based case for investing now...

https://www.biggerpockets.com/member-blogs/12547/87775-does-the-2-rule-exist-anymore-a-case-for-aiming-lower

There are lots of great in person resources here in Orlando as well: Check out CFRI, GOREIA and @Sean Myers multi-family meetup.

I wish you well on your investing journey!

@Cole Souza - lots of good feedback here. This is a massive project, even for an experienced syndicator. Most commercial apartment acquisitions are purchases of currently occupied and performing properties, where there's room to add value by smaller upgrades, management/operational improvements, rebranding, etc...

And, as everyone has said, it depends on the zip code. In 32789, that's a killer deal, 32805... not so much.

As for experienced syndicators, a bunch of them have been on the podcast, so that would be a good place to start. Also - a bunch of them have their own podcasts.

A few that come to mind: Ellis Hammond, Omar Khan, Joe Fairless, Dan Handford

Good luck - but I would concur with the group, don't try to go this one alone. 3-5% of a potentially $50mil dollar deal is nothing to balk at.

Thanks @Gagan Hurria !

Hey @Hanna Ryeng-Pezzillo - sounds like you're learning a lot about Indy. 

We recently purchased a duplex in 46218 and are doing very well with it. It's definitely block by block - thus the importance of having a solid team on the ground, a great PM is crucial if you're out of state.

@Andy Freeman - no sir, rehab was about $12k with appliances, but the private lender funded the majority of that. The $2500 represents the cash we had in the deal.

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Indianapolis.

Purchase price: $69,900
Cash invested: $2,500

Our first BRRRR in the Indy market. We partnered with a private investor who brought cash to the deal in exchange for a 10+% return on his money.

Since our company, Talent Capital, is part owned by a couple GC's, our renovations get top priority and we finish them quick.

We're finishing up the refi this month (appraisal was yesterday), will cash our investor out at a healthy return and keep this one for the long term.

Thanks for reading!

What made you interested in investing in this type of deal?

We love the Indy market and the cash flow was too good to pass up. We like this particular neighborhood and feel it has strong long term potential. Plus we had a private investor on the deal which minimized our cash outlay and generated them a nice return.

How did you find this deal and how did you negotiate it?

A wholesaler brought it to us and we were able to negotiate a credit for appliances.

How did you finance this deal?

A private investor partner. It's our favorite way to do deals and is truly a win-win.

How did you add value to the deal?

New floors, paint, kitchen and bathroom updates, appliances, interior doors and fans.

What was the outcome?

Each side is leased up on a 2 year term at market rents, cash flowing very nicely.

Lessons learned? Challenges?

Always ask! We negotiated a nice credit for appliances just because we asked.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes!

- David Moudy is our rockstar property manager - he leased up both sides in less than a week at market rents on 2 year leases.
- Scott Comer & Mark Mayer at RMG (Residential Managment Group) knocked out the renovations in record time.

@Evan Mack - great looking reno and that's a sweet deal in Washington, well done man!

Hey @Account Closed - welcome to BP!

A bit confused by this post - sounds like you're new to investing, so my only suggestion (since you asked) is be that person! Dedicate time, hustle, money, hard work to achieving your goals and before you know it you'll be attracting those types of people. Getting started is always the toughest part, keep at it and network like crazy!

@Fallon Morris - congrats on taking steps to become an agent, it can be a very rewarding career.

@Angie Shires & @Russell Brazil give fantastic advice. Partner up with someone successful or join a team, you'll earn more your first year than what you're making now (I'm guessing) and you'll learn a ton and what it takes to be truly successful as an agent.

I wish you all the best!