All Forum Posts by: Robert Lipscomb

Investment Info:

Other buy & hold investment.

Purchase price: $740,000
Cash invested: $88,000

Added 23 units, mostly SFR with two duplexes and one triplex. All properties need work, but I haven't had any issues keeping tenants.

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

Looking for scale

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

Networking

How did you finance this deal?

Conventional + owner carry

How did you add value to the deal?

Capital improvements

What was the outcome?

TBD...

Lessons learned? Challenges?

- Take control of repair/capital improvement costs
- Make sure you have plenty of cash reserves

@David M. I agree. The substance of what the OP will be bringing to the investor or investment team (?) is not being discussed here. 

As a Marine that has fully transitioned to "the real world", I would suggest primarily using your military background for networking. After that, focus on what value you will be providing. If you were an NCO and had great decision-making skills, focus on those skills and leave the military background out of it. It's super-annoying to hear vets try to talk up their military experience in order to get into jobs. Subtle references to your experiences and development within the military is fine, just don't overdo it. 

It seems like you are trying to find a real estate investor that is in need of a protege' of sorts. So, in this case, maybe leverage your military background to meet that person, but then leverage your skills to bring value to the investor. 

Initial numbers look pretty good to me. How much are you going to put down?

@Nathan Gesner - maybe we have significantly different levels of time and effort in mind. With 20 units, from your example, I think this would be well worth the time. Doesn't need to be a thesis, just a usable document to reference. 

Agree with @Taylor L. Need context to understand how this broker can make that claim. To me, the basics of multi-family come down to the scale that you can achieve over single-family and duplexes. What specifically has changed that?

I'm confused, is it a triplex or a duplex?

Self-managing property?

Do tenants pay all utilities? 

I would try to get an accurate insurance quote.

Wow, that is a good idea. I don't have one but I'll definitely be working with my property manager to create some type of product like this. 

I would probably emphasize a "lessons-learned" section. There have been many situations that we've worked through but have not documented. Over the years, this information could get lost or "mis-remembered" if not documented. Starting to sound like an AAR....@Gregory Schwartz

I tuned out once Hasan started a sentence with - "Without massive federal intervention..."

@Anthony Gayden - I'm with you. This is definitely an unprecedented situation, but I think it could cause a significant amount of inflation. So, I don't want to hold on to all of my cash just to have a huge chunk of my buying power evaporate. 

This next month will be important to show how many people will be paying rent. This will surely be region-dependent. 

I live in the Midwest and I see opportunity in multi-family that is made up of mostly section 8 or otherwise subsidized tenants. I'm getting very close to an agreement to purchase 43 units that could potentially produce 50% cash-on-cash ROI if expenses stay under 50% of rents. The current owner collected 100% of rents in April.

I have had a good experience so far with Section 8 and the VASH program. I'm looking to buy more multi-family and will be focusing on Section 8 properties.