All Forum Posts by: Logan Freeman

@Kyle Daniels Your investing in Kansas City will be as successful as the team that you put in place. @William Robison is the king of BRRRRs in the city and can give you a ton of answers to your questions. Having a trusted source for management and construction is key. Sourcing properties that actually fit the BRRRR model is the bottleneck at the moment (in my opinion).

@Alex Hill The key is going to be finding properties - property management is the easy part. You need to start with someone who can source you deals. @William Robison is the leader in hybrid turnkey in KC. If you're looking for larger multifamily, I can assist.

@Bharat K. I would be curious to hear where your current asset is located, what the entry point was for price, what you did to add value to the building etc..There is a lot of competition for multifamily assets in Kansas City and you will need to connect with people that have pocket listings. Also, we have a team here with boots on the ground that are locating assets, renovating, leasing and managing. Make sure whomever you decide to work with has clear expectations on what you are looking for. Hope this helps and I will shoot you a DM as well. 

@Marcos Gonzalez Start with the end in mind, educate yourself. Build systems. Work with great partners and vendors. Real estate is a relationship game. Trust is key.

@Alex Miller I am also in KC and can help in that market. I am evaluating some properties in STL as well. @Hakeem Valles will be a great connection for you.

@Daniel Gutierrez please DM details - I am interested in looking at what you have available. How many units/etc.

Investment Info:

Large multi-family (5+ units) commercial investment investment.

Purchase price: $2,250,000

Cash invested: $55,000

This is the second boutique hotel on the Country Club Plaza. This is one of the most well-known bed and breakfasts in the city with a strong rental history and a top of the line brand and presence.

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

The riches are in the niches. This is our second hotel and actually were targeting this asset before our first purchase. We have the team to manage this asset class and the real estate alone was worth the purchase price.

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

Off of the MLS - I actually sourced this deal by simply getting on the phone and calling the listing agent. After digging in and receiving the financials, I knew I had a diamond that others were passing over. We sat down with the owners directly and negotiated it.

How did you finance this deal?

Community bank with owner financing.

How did you add value to the deal?

The property currently has 13 units.
However, there is an opportunity to add an additional 2 units.
Unit one: Originally a room that was converted into a common space.
There is ample common space, so the unit can be converted back fairly easily.
Unit two: This is storage in the garage of the carriage house. It can either be
expanded (sleeping more guests) or converted into a separate unit
depending on which direction supports the best economics.
The storage can be moved to the basement.

What was the outcome?

We have been operating for about 6 weeks.

Lessons learned? Challenges?

Syndications are not as "easy" as all of the books tout them to be. Working through the funding process needs to actually be a process and set beforehand. Also, give AMPLE time for your PPM and do NOT start your raise until you have it. Have backup investors. Have Plan B ready to go if (and when) Plan A doesn't pan out. Have extensions for your closings. Give enough time to work through operating agreements. Get on the phone with your investors attorneys. Hold a conference call to cover concerns

@Adam Rudolph what type of assets are you looking for financing on? Will you be doing construction loans? It completely depends on what your goals are for who/what type of institution to work with. Shoot me a DM and I can help connect you with SFR/commercial, agency debt.

We purchased a lot of properties in independence-we go off of the school districts mainly. We only purchased in fort Osage, Truman and sometimes William chrisman. We also stayed away from 2 bed homes- only 3x1/2 with garages. Check to make sure it’s on city sewer as well.

@Austin S. Pogue @Michael Hudelson Long distance investing can be a great experience (if you have the right team in place) We helped our investors purchase over 120 properties (all out of state) last year along with contracting, leasing, and management. Having the right team in place is crucial. 

Determining who to work with will also be predicated upon what your investing strategy is: what asset class and location you are interested in. 

Are you SFR, commercial, multifamily/industrial? Let's start there and see what your focuses are and we can help point you in the right direction!