All Forum Posts by: Cody Journell

Hey All!

I run a fully integrated real estate firm out of Blacksburg, VA. We offer our services for everything from acquisition, to construction, management and leasing, and sales of investment properties.

I would love to connect with other community members (especially those in the Roanoke and New River Valley areas of VA) also looking to grow their real estate portfolio and find great partners along the way.

I’d love to help you meet your investing goals!

Cody Journell

Investment Info:

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

Purchase price: $100,000

Currently under construction. Deep value add multifamily project. 4 units. 2 x 2 bd 1 bth, 2 x 1 bd 1 bth.

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

Deep value add

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

Negotiated directly with seller

How did you finance this deal?

Private acquisition and construction financing

How did you add value to the deal?

Full rehab and then plan to lease

What was the outcome?

Still under construction

Lessons learned? Challenges?

TBD

Seems pretty in line with what we charge. If you ever need anything in VA let me know!!

Hey guys and gals, we have been growing our fully integrated real estate company over the past few years. I’m focusing a lot of effort on growing our property management business this year. So far I have been developing units for us to manage and taking on clients through our real estate sales to investor clients.

For those in the biz. What have you found is the best bang for your buck or the most effective strategy to get more properties to manage? 

We specialize in turning around small to mid multifamily properties but also have a lot of SF. The goal is to get to the point where we only manage our own. But I am no where near the point my investments can float the business. 

TIA!

Investment Info:

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

Purchase price: $310,000
Cash invested: $350,000

This was a full rehab 6 unit multifamily building.

Our firm did everything from locating and acquiring the project, to managing construction, and then finished up by leasing out all 6 units for a premium rent.

We used a construction loan to secure the property and do the rehab. 12 month term which we were able to do construction and lease out all units before taking out the original loan with a permanent commercial loan.

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

Lots of value add with a vacant unit and can pull all our cash out from post rehab and stabilization.

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

Through my network. Negotiated directly with seller.

How did you finance this deal?

Private money for acquisition and construction, then a commercial loan for the permanent.

How did you add value to the deal?

Full rehab and high market leases.

What was the outcome?

Bought at $310,000, rehab for $350,000. Appraised for $1.2M.

Lessons learned? Challenges?

Always takes longer than you hope for. Would keep a tighter grasp on budget and timeline with team.

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

Yes Chris Lemons with Creative Financing Solutions believed in us and gave us the opportunity.

@ALYSSA Feliciano

I’m also in the early stages of looking outside my local market. I just read the book, ‘The Best Ever Book On Apartment Syndication’ by Joe Fairless. He has a whole chapter dedicated to out of state market analysis.

Basically, you use census.gov to pull most of your information data for every year from present to 5 years back. He said just pick markets that interest you. Up to about 7 to run analysis on to start. Then look up the following criteria:

Unemployment rates

Population growth

Age range population changes

Median rent rates

Vacancy rates

Percentage of job sectors (says be careful in areas that have one dominant sector +25% bc if that sector tanks it will most likely have a neg impact on rents)

Top employers (same as above)

The you take that data and observe the trend over the last 5 years to try and get a good grasp on how that area is trending. Once you’ve done it for 7 cities or states you start to realize what are good numbers compared to others. I’m doing this as research into multifamily markets, but same principle applies all around. Again I’m just in the early stages too but it was the most comprehensive research plan I’ve heard to date.

Hope this helps!