All Forum Posts by: Brad Stegall

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Welcome to the March Midwest Real Estate Investor Meetup in Peoria. For those of you returning, we're so glad you enjoyed the previous meetups and we look forward to seeing you again.

For those of you that are new around here... Mike Gudat and Brad Stegall of Acceleration Ventures welcome you! They both started investing in their early 20's by house hacking duplexes. Mike has been involved with the acquisition or sale of over 1,000 units. Brad and Mike currently control over 350 residential units in and around Peoria and have just added over $8M in commercial real estate to their portfolio.
For the March Meetup, we are pleased to welcome Reid Bennett to Peoria! Reid serves as National Council Chair of Multifamily Properties for SVN International and Senior Vice President for SVN Chicago Commercial. As a licensed managing broker, he focuses primarily on the sale of apartment communities across the Midwest but also teams up with members of his council to serve clients across the country in over 150 markets. He was involved in the sale and/or purchase of 1600+ units in 2022 (420 units in/near Peoria over past two years). It's safe to say that he knows a thing or two about multifamily! We're excited for Reid to deliver "The State of Multifamily", not only locally... but regionally and nationally as well!

We will still allow plenty of time for networking at the beginning and the end of the meetup. Remember our mission: We want to help investors get started. We want to help connect people to find deals. We want to teach people about creative financing. We want to help everyone win big with real estate investing. We will plan to meet on the second Tuesday of every month.

Lunch will be served during the meeting and you will pay Warehouse on State directly ($15.00).

Event Date/Time: Tuesday, March 14th, 2023 from 11:45am to 1:00pm (lunch served)
Event Address: Warehouse on State | 736 SW Washington St., Peoria IL 61602
Contact Brad at 309.208.8669 or [email protected]

I am an active investor that lives in Peoria. It has been great for us. We have houses, duplexes and apartment buildings. Would be happy to jump on a call with you sometime to discuss. We also have REI meetups in Peoria that average around 60 people for lunch. You could try to come down for one sometime.

Hi Andrew.  Midwest REI is meeting this Thursday from 5:30-7:30 at Industry Brewing in Peoria.  You should join us!

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $2,500,000

Contributors:
Michael Gudat

This property is a very nice building in a great community, but rents were way under market. There are 8 buildings that each have 8 units in them.

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

We knew that this property was in a great part of town and it had good bones. It had been taken care but rents had never been increased over time.

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

We found the deal through a mutual friend that was their insurance agent. They ordered an appraisal and we bought it for $100K less than the appraised amount at the time since no agents were involved.

How did you finance this deal?

We bought this 64 unit complex using a 1031 exchange. The 1031 allowed us to consume another 48 units as well. The 1031 came from a deal that we bought with $70K as a downpayment in 2020. We sold in July 2021. So we ended up with 112 units after investing $70K in 2020 on a 24 unit deal. No additional cash was invested to get the deal done. Pretty incredible.

How did you add value to the deal?

This property is a very nice building in a great community, but rents were way under market. Fortunate for us, 2/3 of the units were month to month. We were able to grow rents by over $4,000 per month in the first 90 days. Now when units come open we are updating the kitchens and flooring and pushing rents by another $250 per month.

What was the outcome?

For now, the outcome is that we have grown the value of this property tremendously. There is a good chance that we will be looking to sell it once we have owned it for 12 months. Gotta avoid the short term capital gains tax!

Lessons learned? Challenges?

I don't think we have had any major challenges on this one....yet. The biggest challenge is that we can't find deals like this more often!!

Midwest REI - Peoria was started in Central Illinois in March 2020 to bring real estate investors together for networking so that they could learn from one another and encourage growth. The meetups have happened every month since and have average over 60 people in attendance.

To celebrate the one-year anniversary, Midwest REI is going BIG! The event will be at the Country Club of Peoria, and the keynote speaker will be Jamie Gruber. Jamie was an executive in the insurance industry for 21 years. Last year he quit his W-2 to be a full time multifamily real estate investor and leader of three mastermind organizations to help other executives find fulfillment and purpose.

On March 24, Jamie will inspire people to think big about what is possible in real estate investing. He will talk about getting into multifamily to scale his business. He discussed this same topic on Bigger Pockets podcast #436. He will also talk about his experience with GoBundance. Jamie is the host of the GoBundance podcast.

Everyone that attends will get a copy of the book “Tribe of Millionaires”. The proceeds from this event will all be donated back to charity groups that help provide housing to those in need.

Your ticket will include appetizers, steak & chicken dinner and one drink ticket.

Thank you to all of our sponsors.

Title Sponsor: Fortress Bank

Supporting Sponsors: GoBundance, Sherwin Williams, Jane E Ohaver PC Law

To buy tickets go here...

https://www.eventbrite.com/e/m...

We have Jamie Gruber coming to speak at our event in March!!

The Midwest REI meetup happens in Central Illinois the second Tuesday of every month.

RSVP for this event here.  https://forms.gle/TkgopLDfjZn6...

Andy Zich will be our presenter in February. He is early in his investing journey buying is first duplex to house hack in June 2020. After living in it and fixing it up he has moved into his second house hack. In addition to the 2 duplexes he has 4 other units. Andy is doing all of this while working full time at CAT. Oh…and he got married last year too. He will be talking to us about hurdles he overcame while getting started, finding deals as a new investor, and tips for investing while working full time. He will also be able to touch on what he has learned from corporate America to help him run his business.

We will still allow plenty of time for networking at the beginning and the end of the meetup. Remember our mission: to help investors get started, to help connect people to find deals, to teach people about creative financing, to help everyone win big with real estate investing.

Lunch will be served during the meeting and you will pay Warehouse on State directly.

Event Date/Time: Tuesday, February 8th, 2021 from 11:45am to 1:00pm (lunch served)
Event Address: Warehouse on State | 736 SW Washington St., Peoria IL 61602
Contact Brad at 309.208.8669 or [email protected]

RSVP at this link.  https://forms.gle/K8nxouECsxja...

Welcome to the January Midwest Real Estate Investor Meetup in Peoria. For those of you returning, we're so glad you enjoyed the previous meetups and we look forward to seeing you again.

For those of you that are new around here... Mike Gudat and Brad Stegall of Acceleration Ventures welcome you! They both started investing in their early 20's by house hacking duplexes. Mike has been involved with the acquisition or sale of over 1,000 units. Brad and Mike are currently business partners on 144 units in and around Peoria. Outside of their partnership, Brad owns 49 units in the Peoria area.

For our January meetup, we are going to hear from local developer Katie Kim with The Kim Group. After a successful career with Accenture in Chicago, Katie came back to Peoria in 2006 to work for the family company, Horan Construction. With the move back home, Katie and Charles brought The Kim Group to Peoria where they expanded the services of The Kim Group to include real estate and property management services for clients. In 2015, Katie left the family business and re-launched The Kim Group with their Professional Services division. It combines Katie’s love for helping people realize their dreams with all of her professional background in evaluating strategic operations and implementations, construction, development, real estate, investing, and property management. In addition to being a buy and hold investor, she chose to go into development on projects like Keller Station, Samuel Avenue condominiums, Trefzgers Bakery, Cooperage 214, and 1009 Washington. She will talk about the massive benefits and challenges that come from development.

We will still allow plenty of time for networking at the beginning and the end of the meetup. Remember our mission: to help investors get started, to help connect people to find deals, to teach people about creative financing, to help everyone win big with real estate investing.

Lunch will be served during the meeting and you will pay Warehouse on State directly.

Event Date/Time: Tuesday, January 11th, 2021 from 11:45am to 1:00pm (lunch served)

Event Address: Warehouse on State | 736 SW Washington St., Peoria IL 61602

Contact Brad at 309.208.8669 or [email protected]