All Forum Posts by: David Schmiediche

@Joshua Pulido Hey man! Congratulations on starting so early and there will be an investor meet up that is happening in College Station on February the 18th. I'll DM you the information and would be more than happy to answer any and all questions you have about our Real Estate market!

@Manish V. Thanks man!

Investment Info:

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

Purchase price: $285,000
Cash invested: $75,000

My father and I were looking for a multifamily property to invest in and the owner of this property reached out saying that he is interested in selling and he would want to sell the property right next to it as well. Six of the eight units are currently rented out and four of them are over $100 below market rent and the property is still cash flowing 5%. Rents are $2,850 per building and for the next few years we will slowly raise rents to market value and it will be cash flowing 9.19%

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

We were looking for a multifamily property to start our investment journey and bring in residual income.

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

We found the seller from a series of direct mail outs and when he mentioned selling both properties and that he had below market rents we pushed on the fact that he had lower rents and being willing to purchase both properties to negotiate the deal.

How did you finance this deal?

Conventional 30 year fixed, 25% down, with 3.375% Interest

How did you add value to the deal?

No renovations were done and once the leases end we will be raising the rents for greater cashflow

Lessons learned? Challenges?

While we were under contract seven of the eight units were rented out and right after closing we found out that she had moved out. Now we are in a unique situation where we can't rent out the unit because she has an active lease on the property and we can't evict her because of COVID protecting tenants unable to pay rent. It has left us with an unusual situation that we are still trying to figure out with help from other investors and attorneys.

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

Brenda Williams from City Bank Mortgage made the transaction effortless on our end with an amazing interest rate. It was so good that when we sent it to the sellers for proof of financing they reached out to Brenda Directly to verify that the pre-approval letter wasn't a fake.

@Gregory Schwartz See you there!!!

Hey Abdul! Congratulations on taking the first steps to investing in Real Estate! Being a Realtor in College Station we have seen significant growth over the past few years and multiple investors are reaping the benefits that you are looking to achieve in the College Station Market. The biggest question that people have with College Station right now is with it being a college town how has it been impacted through COVID. Through the past year the real estate market has continued to go strong and many college students have already pre-leased and are working on pre-leasing for the Fall Semester of 2021. To give you some numbers in December of 2020 the median home price in Bryan/College Station has gone up by 4.5% over the past year and the number of closed sales is up 43.1% over the past year. I would love to talk more about the College Station market and your specific needs! Don't hesitate to reach out directly!

Thursday, January 14th, 2021

7:00-8:30 PM

1900 Barron Rd

College Station, TX 77845

With the beginning of 2021 we are going to have a investor meet up and networking event! I've reached out to the College Station Fire Department and they were kind enough to host us in one of their community rooms. Masks will be required for fire department COVID Restrictions and food and drinks will be limited to water only. This meet up is opened to all investors beginners to experts and real estate agents, contractors, lenders, etc. Tables and chairs will be provided.

Hey Angel!

Analysis Paralysis is the biggest thing that stops people from chasing after their dreams sooner than they can and should. There is so much to learn specifically in real estate that you are never going to know everything. Even people that have been in the business for 30 years are still learning consistently. One rule of thumb used for when you should start doing something instead of just learning about it is when you feel like you know 70% of what you need to know. When climbing a mountain you won't know exactly what steps you are going to take and what problems are going to arise and once you start going up the mountain you will get more information allowing you to asses and handle any potential problems. You have been spending the past year learning anything and everything you could. Do you think you're ready?

The biggest thing that stops people besides not being able to commit and take the first step is not having the funds. If you have the capital you need to start what else do you need at this current time?

After answering those questions I'm sure you'll make the right decision on starting your business as an investor! If you have any further questions don't hesitate to reach out to me directly. I love meeting up with people to discuss investing in ones future.

@Gregory Schwartz Congratulations on the new investment! This looks like a good deal that will serve you well over the following years. @Pete Harper One question I have for both of you is Investing 5k into renovations that will increase rents by $50 is a 12% ROI. Even with the payback being 100 months, 12% ROI in my opinion is a good investment. If you don't do the renovations what else would you do with the money? My viewpoint is you can save it for your next investment or it will sit in a bank account earning you nothing. Unless you are planning on making another investment why wouldn't you take the 12% ROI?

Huge thanks to Kameron Yellin for hosting an investor meet-up at his house hack duplex last week! With there being interest in another meet up early December I wanted to go ahead and get a time and place that we would be able to do another meet-up. I've reached out to the College Station Fire Department and they were kind enough to host us in one of their community rooms. Masks will be required for fire department COVID Restrictions and food and drinks will be limited to water only.

Thursday, December 3rd, 2020

7:00-8:30 PM

1900 Barron Rd

College Station, TX 77845