All Forum Posts by: Dj Hume

Thanks @Kyle Neff! 

Investment Info:

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

A 24 unit multifamily building that was owned and operated by the same owner for 20+ years. This building has significant deferred maintenance along with mismanagement and tenants that were not screened prior to move in. This complex required a complete overhaul and repositioning, from full remodels of the interior to removing old tenants that didn't meet our minimum requirements to be a tenant within one of our communities. The upside is that current rents reflected the distress.

How did you add value to the deal?

Renovations - Send me a PM, I'd love to show you before and after pictures!

What was the outcome?

Over $500,000 of new value was created within 6 months and we still have 18 units we need to renovate

Investment Info:

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

A 24 unit multifamily building that was owned and operated by the same owner for 20+ years. This building has significant deferred maintenance along with mismanagement and tenants that were not screened prior to move in.

This complex required a complete overhaul and repositioning, from full remodels of the interior to removing old tenants that didn't meet our minimum requirements to be a tenant within one of our communities. The upside is that rents reflected the distress and were below market

How did you add value to the deal?

Renovations - Send me a PM, I'd love to show you before and after pictures!

What was the outcome?

Over $500,000 of new value was created within 6 months and we still have 18 units we need to renovate

Investment Info:

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

10+ unit in Cincinnati near the outdoor Kenwood mall. This property provides substantial cash flow along with value add upside.

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

An off-market connection

How did you finance this deal?

Through one of our local lenders and limited partners

Hi Marquez, 

Welcome! The same advice I give to my students and that is to start with education, you really want to understand the very basics of Real Estate investing. You can do this by youtube, facebook, or there's a ton of books out there (feel free to DM me if you want a free copy of mine). 

Then the race is on, you'll be much more confident and excited to stay on this journey!

I hope this helps!

Dj

The best Real Estate deals that I've done, are the ones that are self-sustainable (cashflow) from day 1 with a value add component. This provides security and mitigates risk with the potential to increase my ROI by investing more money back into the property.

I look at 3 data points:
-Medium House Income

-Population Growth

-YOY Job Growth

Here's the rationalization around that. When you determine the medium house income you have a pretty good idea on what people can afford to pay with rent. Population growth will tell you if people enjoy living there or is it a dying city. Lastly, job growth.. well if there aren't any jobs why would someone move there. 

What do you think about these metrics?

@Lee Yoder All of the current deals are in the Cincinnati area, but we're looking in a few other targeted cities as well, just haven't pulled the trigger on one yet.

It's a multi-layered approach, I now have a full-time deal sourcing team

@Lee Yoder Yup, we're actively looking. We have 3 under contract currently with a 4th to be under contract soon.

Investment Info:

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

10+ unit in Cincinnati near the outdoor Kenwood mall. This property provides substantial cashflow along with value add upside.

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

This property was stable but had value add upside, but also located in a prime location that continues to see year over year growth.

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

Our sales team performed an outbound campaign targeted properties we were interested in and believed to meet our investment criteria

How did you finance this deal?

We financed this deal through a local credit union that I've worked with in the past.

How did you add value to the deal?

This property is multi-tiered in value add potential. We've initially focused on bringing in the right tenant base and upgrading community and landscaping areas.

What was the outcome?

We still own this property and we continue to drive growth and addition work to this property.

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

I did not work with any real estate agents on this deal.