All Forum Posts by: Cal Rohrman

@Erik W. The capital was raised from family and friends that knew what I have been up to these past few years. I was able to leverage what I have done up until this point and use that as credibility moving forward. My business partner Adam, notified me of the deal and said we only have a few months to get this done, the rest was history. 

For the last 3 years investing in real estate, I had 2 major goals I wanted to accomplish: 1. Complete an apartment complex syndication & 2. Own 25 units by the age of 25. As of this week, my partner and I closed on a 42-unit apartment complex in Milwaukee, WI making 65 units under management! 

The last 2 months have been busy, raising upwards of 340K to close on this beaut. With investors, whom have never invested in real estate before resulting in tons of questions and concerns that were handled responsively. 

Our investors will plan to receive 8% ROI or more paid out quarterly with anywhere from a 5-10 yr holding period depending on the market.

Adam McCarthy did an outstanding job utilizing his sources to find the deal, secure great terms, a thorough inspection, and detailed paperwork from his syndication attorney.

Everything happened so quickly and throughout the process I was able to learn a ton of information that will help with future deals. Now, its time to start the process all over again!

@Baahir Starkey

I recommend taking that capital and putting it towards a duplex, triplex, or 4 unit. You can house hack, by living in one of the units and renting out the other. This not only allows you to live for free or close to nothing but you will gain experience in being a landlord, you'll build equity from your tenants paying off  your mortgage, and great tax write-off.

In your case, you can be flexible. Take advantage while you can because once you have a family your living choice will be limited and it will be hard to "house hack".

Hi, @Lindsay

I currently have 20 units under a 3rd party property management and this has been the best decision for growing my business at scale. Theirs a saying out there “work ON your business not IN your business”. I consider owning and managing your properties working “in” your business which takes away from time you can spend growing your business. While it sounds hard to give up control over your tenants and properties you have to realize there are professional companies that specialize in this aspect of the business ( you just need to find the right one). Personally, I’ve fired a few companies from lack of production but over time came across the right one. Now my time has shifted towards managing the property management company, deal acquisition, investor relations, and of coarse free time with family and friends. If you have a few units I would recommend self managing, that way you can learn this aspect of the business which will allow you to be more knowledgeable down the road overseeing the property management company. Hope that helps!

Hi Guys,

As of last week I successfully completed my first real estate investment from acquisition to sale. As a young real estate investor, 20 months in... It was a huge accomplishment of mine. After reading countless numbers of books, listening to podcasts and meeting with vets, it was a sigh of relief to complete a full transaction. 

The whole deal amounted to a 36% ROI within the 20 months of ownership. This includes cash flow, apperciation, and all expenses ranging from garbage disposals to new roofs.

It was a great deal for both parties, considering the buyer has 2 solid tenants with a 1% return MoM return.

With the apperciation amount and inital capital, I set up a 1031 exchange. I've already closed on one property and still have about half to close on another. This will leave my current portfolio at 15 units all located in Milwaukee, WI.

In no way am I tuting my horn, this is to show new-comers, like me, with the right education and hard work you can achieve good returns in this industry. Everyday I am continuing to learn and find new ways to make my business more efficient. This doesn't mean every deal will produce the same results but I know these stories deffinitly helped me starting out and can give you confidence moving forward. 

If you guys would like to know more information regarding this deal or any other deal I've done please feel free to reach out, I would love to give back in anyway to this community.

Thanks again, guys.

Cal Rohrman

@Morgan Yang

I'm currently in a similar situation such as yours. I currently live in Wilmington, NC where this market is more apperciation rather than cashflow, 1% deals are hard to come by. So last year I partnered up with a good friend of mine in Milwaukee, WI where 3% deals are very common. Since then we've acquired over 10 units and have systems in place to optimize at scale.

My advice to you is partner with someone you already trust that has experience investing in a specific market. Especially with you being the source of capital, people will want to be your best friend. Good general contractors are a dime a dozen, same goes with realtors and property management. 

If you would ever like to connect let me know, would love to provide any adivce on out of state investing.

@Stephen DiNanno Congrats on this deal! It seems you guys have a great strategy going with addition to an awesome mentor. My partner and I have similar strategies to yours that we buy residential portfolios consisted of 2-4 units in the MKE area and BRRRR. Right now we're stumbling across a financial institution that will refi our ARV. Along with @Rebecca Knox I too would like to know who completed your financing? Any suggestions would be much appreciated!

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $68,500
Cash invested: $68,500

3 properties, 4 total units in the Milwaukee & Racine, WI area. We found these off market and are currently renovating them. We will end up putting around $20,000 in and our rent roll for all 4 units will be just over $3,000.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $68,500
Cash invested: $68,500

3 properties, 4 total units in the Milwaukee & Racine, WI area. We found these off market and are currently renovating them. We will end up putting around $20,000 in and our rent roll for all 4 units will be just over $3,000.

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

What made us interested in this specific deal was the cash flow after everything is set and done. From receiving a great sale price, to minimal renovations to rent roll being high, this is an all around great deal for us.

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

We found this deal off market through mutual friends. We negotiated through our realtor and acquisition team.

Hi guys,

Does anybody know financial instituitions that lend 75% ARV on residential properties in the Milwaukee area?

My partner and I have been working hard acquiring off market properties for well below market value in the Milwaukee area. In the last 2 months we've closed on 8 properties, 11 total units (all residential). Our plan is to receive the 75% ARV but we are having a hard time finding the right financial instituition to lend to us and grow with us as a company.

Any help or suggestions would be much appreciated. Thanks everybody.