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All Forum Posts by: Jorge Abreu

Jorge Abreu has started 242 posts and replied 343 times.

Post: Thorough Due Diligence: Financial and Physical Property Assessments

Jorge Abreu
Posted
  • Rental Property Investor
  • Dallas, TX
  • Posts 377
  • Votes 313

There are no two ways about it: rigorous due diligence is required. It serves as the foundation for all successful deals.

The first stage in analyzing a possible investment is to perform rigorous financial due diligence. It entails verifying leases, contracts, and financial records in order to acquire a comprehensive picture of the property's financial health. You need to understand what you're getting into. Assessing the seller's professionalism and sophistication is critical in deciding the level of detail required in this procedure. A heavily promoted transaction with a smart seller necessitates rigorous examination and documentation.

To ensure accurate assessments, I advocate hiring third-party professionals in financial research and due diligence. Their experience and unbiased perspective can provide critical insights that would otherwise go unnoticed. Installing effective software for simplified documentation is critical for organizing and managing the massive amount of data involved in the due diligence process.

Physical property inspections and unit walkthroughs are equally crucial as financial due diligence. On-site evaluations allow you to examine the property's condition, identify potential difficulties, and precisely estimate renovation costs. Remember that chaos typically means reward. Even if a property appears chaotic or disorganized, a creative approach can reveal hidden prospects for big returns. 💥

Post: 👍 Learning from Mistakes: The Importance of Due Diligence

Jorge Abreu
Posted
  • Rental Property Investor
  • Dallas, TX
  • Posts 377
  • Votes 313

Anytime!

Post: Elevate Webinar - The Top 4 Real Estate Asset Classes for Informed Investors 💥

Jorge Abreu
Posted
  • Rental Property Investor
  • Dallas, TX
  • Posts 377
  • Votes 313

I am looking forward to hosting our webinar, The Top 4 Real Estate Asset Classes for Informed Investors, tomorrow, July 31st at 6 pm CST. This is your final reminder to register and gain valuable insights into industrial, storage, multifamily, and retail real estate investing.

What We’ll Cover:

  • Industrial Real Estate: Key trends and opportunities in the industrial sector.
  • Storage Units: Why storage facilities are gaining popularity among investors.
  • Multifamily Properties: Benefits and strategies for investing in apartment complexes.
  • Retail Real Estate: Understand the evolving retail landscape, where strategic investments in retail centers can lead to recurring rental income and long-term growth.

Webinar Details:

  • Date: Wednesday 31st
  • Time: 6PM CT

Why Attend?

  • Deep Dive into Top Asset Classes: Equip yourself with knowledge to make informed investment decisions.
  • Industry Insights: Hear from industry leaders with a proven track record.

Register here: 

https://us02web.zoom.us/webinar/register/WN__ThDBIX9Tnql5m-c...

See you at the webinar!

To Your Prosperity,

Jorge Abreu

Post: 👍 Learning from Mistakes: The Importance of Due Diligence

Jorge Abreu
Posted
  • Rental Property Investor
  • Dallas, TX
  • Posts 377
  • Votes 313

@Kevin S. 

It sounds like you might be speaking about smaller residential units. In multifamily it's not so much about your credit and more about your personal financial statement and schedule of real estate. Either way I believe you should always have several lenders ready to go. Some focus on different types of deals so it's good to have a large database of lenders and build a relationship with them.

Post: 👍 Learning from Mistakes: The Importance of Due Diligence

Jorge Abreu
Posted
  • Rental Property Investor
  • Dallas, TX
  • Posts 377
  • Votes 313

@Kevin S.

Here are a little more details about the deal and what happened. It was a heavy value add deal at a great basis. Our lender wanted clean financials or they wouldnt lend on the deal. The seller couldnt supply us with this so we gave up and dropped out of the deal during due diligence. Another buyer came along and found a lender that was willing to lend on the deal and they closed on it and had success with the deal from there. Looking back we should have found a lender that understood we were buying from an unsophisticated seller and that was one of the many reasons we were going to be able to add a ton of value to the deal.

Post: Passive Income Fund Webinar 😎 Watch the Replay!

Jorge Abreu
Posted
  • Rental Property Investor
  • Dallas, TX
  • Posts 377
  • Votes 313

We had a great live session this week!

During the Passive Income Fund webinar, we uncovered:
Why more and more Americans are turning away from a volatile stock market and instead seeking stability with passive real estate funds.

How we’re able to offer 14.5% preferred yearly returns - almost double what the average stock market has returned over the past 30 years.

Distributions monthly starting from the first month invested

The freedom and choice that comes with monthly recurring income and not having your investments locked up for decades.

Whether you’re an experienced investor or new to syndication, the insights we provided are beneficial.

Tap the link below to watch the replay!

https://go.elevatecig.com/passive-income-fund-072424

Post: 👍 Learning from Mistakes: The Importance of Due Diligence

Jorge Abreu
Posted
  • Rental Property Investor
  • Dallas, TX
  • Posts 377
  • Votes 313

Wow, this crazy real estate journey has taught me a lot! And let me tell you, doing your research is just as important as wearing sunscreen at the beach.

When you buy or sell real estate, you have to do a lot of study to figure out how much the property is worth and how it looks. This process helps find any problems or risks that might affect the business.

Now, don't get your financial due diligence and property review mixed up. There are two peas in a pod, but they taste different. When you do your financial due diligence, you look at the property's financial records, leases, contracts, and other related papers. Physical property inspection, on the other hand, includes checking out the property's state, walking through each unit, and figuring out what repairs or renovations need to be done.

It's smart to get professional help to make sure that the assessments you make during due research are correct. Hiring skilled professionals, like CPAs or specialized consultants, can help you make accurate financial statements and give you useful advice. Their knowledge makes it easier to get a full picture of the property's financial health.

It seems like I pushed a bit, but not as much as I should have. We should have thought of some other ideas. We might have thought about getting a CPA or someone else to make the P&L from his records or something else that the lender would accept.
It's important to keep your feelings in check during due diligence. Mistakes that cost a lot of money can happen when you're feeling emotional. From my own experience, I know that letting personal biases or bad feelings about the seller or property affect my decision-making can cause me to miss out on chances.

My first mistake was being too set in my ways and not being able to think outside the box. We ran into a difficult seller in one deal who wouldn't give us the information we needed for due research. We backed out of the deal instead of looking for other options. The chance was missed, though, but an investor who was more creative and open to chaos took it and made it a home run.
When I thought about what happened, I understood how important it is to think outside the box and push yourself. Chaos and difficulties can sometimes lead to special chances to earn big prizes. We can get past problems and find hidden possibilities if we keep an open mind and look for other ways to do things.

Real estate investing is a people business, so remember that. Getting to know buyers and earning their trust can make a big difference. Actively listening and asking the right questions are important bargaining skills that can help you figure out what the seller wants and why.

Post: Seller Carry and Creative Deal Structuring

Jorge Abreu
Posted
  • Rental Property Investor
  • Dallas, TX
  • Posts 377
  • Votes 313

@Colby Fryar

Thank you for sharing your experience! Understanding the specific needs and goals of both the buyer and the seller is crucial in determining the best financing approach. Thanks again for the valuable insight!

Post: Seller Carry and Creative Deal Structuring

Jorge Abreu
Posted
  • Rental Property Investor
  • Dallas, TX
  • Posts 377
  • Votes 313

Great questions. Yes they are usually focused on getting the increased price. We meet with them virtually or in person if all possible and then we present to them our track record. We show them all the deals we have gone full cycle on and that we have a strong team with proven success. It's usually more about if they want to wait to receive the higher sale price or settle now for less and not so much about us.

Post: Seller Carry and Creative Deal Structuring

Jorge Abreu
Posted
  • Rental Property Investor
  • Dallas, TX
  • Posts 377
  • Votes 313

@Sam Applegate We've had about 30% accept. We offer some type of seller finance or carry on almost every LOI we send. We are able to raise our offer amount with a seller carry structure and that is what we use to convince them.