All Forum Posts by: Brad Stegall

My first question would be why are you bringing on a partner?  Do you need a partner in order to get the deal done?  I would do your first deal on your own if you could.  

Investment Info:

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

Purchase price: $1,275,000
Cash invested: $55,000

My first deal with a partner. We were able to buy a 24 unit apartment complex along with 2 duplexes.

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

I have a lot of duplexes and had been trying to get into multifamily.

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

I found the deal through networking with a mentor of mine. We used a real estate agent that we were both good friends with.

How did you finance this deal?

We got a bank loan and had a carry back from the owner.

How did you add value to the deal?

We had value when we purchased by negotiating a good price. We have since sold off one duplex to generate some cash. Now we are updating the units and raising rent.

What was the outcome?

We will take the cash from the sale of the first duplex and do another deal. As for the 24 unit and the other duplex....TBD :)

Lessons learned? Challenges?

I learned a lot by working with my business partner. He structured the deal in a way that I didn't know was possible.

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

Katie Kim was our real estate agent. Dean Heinzmann from Fortress Bank helped us with financing. Both great people!!

I am an active investor in Peoria and would be happy to connect with you!  PM me.

@Gloria Wiekert. I invest in a lot of real estate in Peoria and have had a lot of success. It is more of a cashflow market for sure. We are still buying and loving the passive income!

Investment Info:

Small multi-family (2-4 units) fix & flip investment in Peoria Heights.

Purchase price: $140,000
Cash invested: $8,000
Sale price: $195,000

I bought two empty duplexes right next to each other that had been vacant for a year. I marketed them. Got 3 units full and was able to sell.

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

I knew that I could add value by leasing out the units.

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

A friend of mine called me because he knew I was an investor. He happened to be friends with the out of market owners. I negotiated the price down because they had been empty for an entire year. I knew it was because their property manager just wasn't doing a good job.

How did you finance this deal?

I bought it for cash with lines of credit from other properties that I have good equity positions on.

How did you add value to the deal?

I bought new appliances for all 4 units and got 3 of the 4 units rented out.

What was the outcome?

I got one unit rented out the first month and the second came quick too. the rental income almost covered all of the money that i had to put into it for appliances and repairs. I ended up clearing just shy of $50K.

Lessons learned? Challenges?

The biggest challenge was that we were going into the winter and that isn't a good time to rent places in this area. A lesson i learned was the power of networking. The person that I ended up selling them to was someone that I met at a charity event that told me he wanted to get into real estate investing. Now he has a great property and I have a new friend too!

Investment Info:

Small multi-family (2-4 units) fix & flip investment in Peoria Heights.

Purchase price: $140,000
Cash invested: $8,000
Sale price: $195,000

I bought two empty duplexes right next to each other. They were owned by some guys out of Chicago that hadn't been able to manage them well because they weren't local. I knew they were worth a lot more than $140K if I could get the units filled up. Through networking at a charity event I met someone who wanted to get into real estate investing. They would end up buying the duplexes from me after I got 3 of the 4 units leased out and cashflowing. I had to buy appliances for all 4 units and some other minor repairs.

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

I knew that I could add value by leasing out the units.

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

A friend of mine called me who happened to be friend with the owners from out of town because he knew I was an investor.

How did you finance this deal?

I bought it for cash with lines of credit from other properties that I have good equity positions on.

How did you add value to the deal?

I bought new appliances for all 4 units and got 3 of the 4 units rented out.

What was the outcome?

I got one unit rented out the first month and the second came quick too. the rental income almost covered all of the money that i had to put into it for appliances and repairs. I ended up clearing just shy of $50K.

Lessons learned? Challenges?

The biggest challenge was that we were going into the winter and that isn't a good time to rent places in this area.

Investment Info:

Single-family residence wholesale investment.

Purchase price: $20,000
Sale price: $30,000

This was a really simple wholesale. Found a bank that needed to get rid of a house and got it under contract. Then i assigned it to another investor for a $10K profit.

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

I was interested because I could buy it really cheap and it had a lot of value.

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

I found it through a banker that I work with on some of my buy and hold deals.

How did you finance this deal?

I didn't have to finance any of it. We did a dual closing.

@Erick Scarpone

I invest in Peoria and am very happy.

@Michael Ealy

Way to go and thank you for sharing. I am working on a 28 unit deal where the owner is willing to do a 20% carry back. Any suggestions on how to get a bank to let me close w zero money down using the carry back? This is a first for me.

I think Peoria is a great cashflow market.  No appreciation here though.  I think a lot of the issues Steve referenced would depend on where you choose to invest.   I don’t buy the “hood” houses that Steve referenced. A lot of my friends do but I have chosen not to.   My returns may be a bit lower but so are my headaches.  I just requested to connect w you.  Then PM me and we can schedule a call.  I am working w Mark Wagner as a property manager.  He won’t do “hood” houses though.  Look forward to speaking w you!!!