All Forum Posts by: Brandon Beatty

Investment Info:

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

Purchase price: $7,250,000
Cash invested: $3,500,000

60 unit apartment complex purchased off market from same owner of 20 years

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

Newer construction and upside with rents

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

Broker found it off market

How did you finance this deal?

Non recourse Fannie

How did you add value to the deal?

Light renovation

What was the outcome?

Increased NOI by 25%

Investment Info:

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

Purchase price: $1,350,000
Cash invested: $350,000

40 unit value add apartment complex purchased from same owner of 40+ years

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

Same owner of 40 years and opportunity to increase rents by 400 a unit

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

Off market direct to seller

How did you finance this deal?

Bank recourse

How did you add value to the deal?

Large renovation budget

What was the outcome?

Increasing value by 800k

Lessons learned? Challenges?

This was my first commercial property with flood insurance and I learned a lot

Investment Info:

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

Purchase price: $4,100,000
Cash invested: $2,000,000

79 unit value add apartment complex with roughly 800k in cap ex completed

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

Instant equity and upside

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

Broker - off market

How did you finance this deal?

Bank recourse

How did you add value to the deal?

800K in renovations roughly 8K a door

What was the outcome?

Increasing NOI and value of property by 2M+

Lessons learned? Challenges?

Having the right manager in small towns is challenging

@Account Closed thank you!

@Alicia Marks located off I-30 and Eastchase on the south east side of Fort Worth 

Hey @Mario D. my team uses cold calling, direct mail, PPC, and SEO to get off market deals. We also do a lot of networking and buy from wholesalers. I recommend starting with cheaper cost per lead marketing channels first like cold calling and SMS marketing until your doing decent volume and can pay more for more expensive leads. 

@Tanner Sherman thank you! 

Investment Info:

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

Purchase price: $3,650,000
Cash invested: $1,000,000

Purchased a 51 unit multi family property off market in Fort Worth Tx for 71K a unit. The property was inherited after their father has self managed for many years. The property was built in 1990 and very clean. The rehab was 400K and mostly cosmetic interiors. We achieved 300+ rent increases on the renovated units. Estimated currently value is over 6M with about 2M in equity created!

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

I am interested in every aspect of multi family investment because of the benefits. The economies of scale, tax benefits, loans, cap rate compression, and more! Great asset class.

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

This was an off market deal. Negotiations led by simply making an offer that was quickly accepted.

How did you finance this deal?

Local bank relationship. 80% LTC, 2 years IO with a 5 year term. No pre pay.

How did you add value to the deal?

1. Professional management
2. Renovated all units allowing $300+ rent increases

What was the outcome?

About 2M in equity created and a very nice property!

Lessons learned? Challenges?

Manning Multi Family properties this size (51 units) presents challenges because generally the budget doesn’t allow for a full time leasing manager on site. We we’re renovating several units at a time and we’re having trouble leasing the units quick enough in the beginning so we had to increase staffing until the renovation was complete.

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

N/A

Hey @Nolan Chandler! I recommend having your investor be a 2nd lien holder on the property. Understand you will have to make sure your first lien holder will allow this. Another way is to have your investor and yourself both share ownership of the entity that owns it but this will likely require the investor to be on the loan as well.  

Hey @Nicholas Wood! I recommend having a property management company create an operating budget for you as a starting place. Then you can build out a 5-7 year projection calculating rent growth, expense growth, and your exit. With that data you will be able to calculate your return and see if the project it worth it