All Forum Posts by: Lucas Miles

@Mary M. Yes I have the ability to close, would not be wasting the sellers time if I didn't. 

@Jonathan Greene sounds good, I'll try to push seller/partner 2 to provide the financials to make an offer. Thank you!

@Bjorn Ahlblad Unfortunately a cash offer is not a possibility for me with my current financial situation. Providing the seller with more confidence on my ability to close is a great tip! 

@Michael Plante Sounds good, seems like there is some conflict between the partners, I'll definitely see if I can help foster that relationship.

@Justin Goodin Looking to purchase the property, yes. I don't have specific financials yet, but have some ballpark numbers, and those looks pretty good. Emphasizing my team and ability to close are something I will continue to reinforce! 

@Russell W. Great idea, I'll see if I can reach out to the third partner and develop a relationship there as well! 

Thanks for all the input!

I've been in contact with the owner of an off market (not listed and no broker relationship) medium sized multifamily apartment complex. Property is owned by 3 partners, partner #1 I've been in contact with for a week or so, and have developed a strong relationship with. 

Partner #1 suggested I reach out to Partner #2 who has a better understanding of the financials of the property. Partner #2 informed me that there was another interested buyer, and he promised the other buyer he would not talk to additional buyers. Basically told me he would reach out if the other buyer fell through. Partner #3 seems to be out of the picture. Seems like a pretty odd approach for a seller to only talk with one buyer, is this the norm for off market 10+ multifamily deals?

I told partner #2 to inform the other buyer my name, and that I would be open to a partnerships on this deal. Investing in a small market, so we likely know each other. 

Looking for any recommendations on if there is anything else I can try. I'm not one to "sit around" and hope the other buyer falls through!

Investment Info:

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

Purchase price: $98,500
Cash invested: $35,000

Property had a significant amount of deferred maintenance, but structurally sound and in a great location.

Completed full rehab on one of the units, and smaller updates in the other units. Rehab was more expensive then I estimated, but was able to split 3/5 units to separate electric, and add a separate office/storage area in the basement.

Will rehab the other units as tenants move out, and eventually split the last 2 units to separate electric.

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

To step into the apartment investing for higher cashflow.

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

Driving for dollars. Conversations directly with the seller.

How did you finance this deal?

Commercial lender and rehab with personal cash reserves.

How did you add value to the deal?

Completed remodel of one of the units. Add separate electric meter to one of the units. New and quality tenants.

What was the outcome?

Rehab was a lot more than I expected. Finding quality tenants takes time (especially end of fall/winter).

Lessons learned? Challenges?

My due diligence was poor, missed a lot of things during walk through. Seller lives out of state so was difficult to get into the apartments (especially during middle of COVID). Did not negotiate with the seller enough. First time working with a general contractor. Did not spend enough time estimating what it would cost to rehab everything it needed.

Property however cashflows very well. Will not get as high of first year return as I was expecting, but still very happy with the results.

Investment Info:

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

Purchase price: $98,500
Cash invested: $35,000

Property had a significant amount of deferred maintenance, but structurally sound and in a great location.

Completed full rehab on one of the units, and smaller updates in the other units. Rehab was more expensive then I estimated, but was able to split 3/5 units to separate electric, and add a separate office/storage area in the basement.

Will rehab the other units as tenants move out, and eventually split the last 2 units to separate electric.

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

To step into the apartment investing for higher cashflow.

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

Driving for dollars. Conversations directly with the seller.

How did you finance this deal?

Commercial lender and rehab with personal cash reserves.

How did you add value to the deal?

Completed remodel of one of the units. Add separate electric meter to one of the units. New and quality tenants.

What was the outcome?

Rehab was a lot more than I expected. Finding quality tenants takes time (especially end of fall/winter).

Lessons learned? Challenges?

My due diligence was poor, missed a lot of things during walk through. Seller lives out of state so was difficult to get into the apartments (especially during middle of COVID). Did not negotiate with the seller enough. First time working with a general contractor. Did not spend enough time estimating what it would cost to rehab everything it needed.

Property however still cashflows very well. Will not get as high of first year return as I was expecting, but still very happy with the results.

Investment Info:

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

Purchase price: $98,500
Cash invested: $35,000

This was my second deal, an off market 5 unit apartment building.

Property had a significant amount of deferred maintenance, but structurally sound and in a great location.

Completed full rehab on one of the units, and smaller updates in the other units. Rehab was more expensive then I estimated, but was able to split 3/5 units to separate electric, and add a separate office/storage area in the basement.

Will rehab the other units as tenants move out, and eventually split the last 2 units to separate electric. Continually update the property to add curb appeal and attract higher quality tenants.

Started to added systems to my business and hire out the work with this project. Continuous improvement! Excited for the next project.

I have a Facebook Business Page that I would like to post Rental Listings to the Facebook Marketplace (not from my personal page).

Currently, I don't have the option to post to the Marketplace from my Business Page. According to Facebook "Car dealerships and real estate agents or property managers can list their inventory on Marketplace using their Facebook page".

I'm sure there is something else I have to setup here, anyone set this up before?

@Brad Uhlig looks like a great event, looking forward to it!

@Pedro Padilla I think of REIT investing just like investing in any other stocks, and really not investing in real estate but rather the stock market. Not necessarily a bad thing, just comes down to what you want and are looking for.

@Ramon Vargas I have always been nervous about investing in vacation rentals. Concerns being in situations where money gets tight will there be a demand for vacations. Rentals are great as people will obviously need a place to live. If you go the vacation rental route, make sure you have a back up plan if demand for vacation homes goes down.