All Forum Posts by: Daniel Krueger

@Effram Barrett in the first few deals I used all my own money. This year I have been raising funds from investors in addition to putting my own capital in.

Thanks Jeff! for this first deal I just cold emailed a ton of commercial agents in my area. I shot out a ton of emails and only about 5 responded. Of those 5, only 2 actually started sending me deals. After a few months of looking at a few properties with one of the agents we located this deal. Subsequent deals have been sourced through a very good agent I connected with later. He leverages his network to drum up off market properties and provides a really solid deal flow for me. 

@Michael Randle

This first one was brought to me by a broker I found online.

First step for me was cold emailing a ton of brokers. Out of 40-50 emails only about 3 responded. One of them was the broker who brought me this deal.

Investment Info:

Large multi-family (5+ units) buy & hold investment in St Paul Park.

Purchase price: $413,000
Cash invested: $90,000

Property is conveniently located near all of our other assets.
Property has 2 two-bedrooms that we can convert to three-bedroom units.
Market rents were also below the market average.

Investment Info:

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

Purchase price: $1,100,000
Cash invested: $250,000

Acquired a 15-unit building in St Paul. Average rents in place for 2BR: $850-$900, 1BR: $750, Studio: $650.
Market will support 2BR Rent of $1200, 1BR $900, and $785-$800 for studios.

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

This deal requires a decent amount of unit rehab as well as getting 'trouble' tenants out.
We also have a large un-used space in the basement that can be leased out to a small business.
In addition to fixing up the units and adding a commercial tenant to the basement, we will be introducing a RUBS program.
Estimated value after rehab work is $1,500,000

Investment Info:

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

Purchase price: $650,000
Cash invested: $150,000

Acquired an 8-unit building for $650k. In place rents averaged $750 for one bedrooms in a market that supports $900. There was also one unit occupied by a live in care taker for free. We brought in our in-house management, fixed up the units, and leased up the 1 Bedrooms for $900/month. We will be refinancing in one month (9 months after acquisition) and using the new equity to invest in the down payment of the next property.

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

Rents were below market

How did you finance this deal?

80% loan from a local commercial lender

How did you add value to the deal?

fixed up units (new floors and appliances). Upgraded common area fixtures (doors, carpet etc). Added new landscaping to the front of the building. Introduced RUBS.

The 2BRs are getting $1200 and the 1BR units are getting $800. When we acquired the building the 2BRs averaged $850 and the 1BRs were currently $600.

There are 4 two-bedrooms and 2 one-bedrooms in the building. 

Investment Info:

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

Purchase price: $475,000
Cash invested: $95,000

Purchased for $475,000 with a down payment of about $90k. Spent about $30k on improvements and re-positioned the property with better tenants. Refinanced 9 months after purchase with a value of $630,000.

Investment Info:

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

Purchase price: $475,000
Cash invested: $95,000

Purchased for $475,000 with a down payment of about $90k. Spent about $30k on improvements and re-positioned the property with better tenants. Refinanced 9 months after purchase with a value of $630,000.