All Forum Posts by: Robert Martinez

I will keep it simple... Find a great owner operator and invest in multifamily apartments. 100 units or more with on site management. These deals have great cashflow and amazing tax benefits. 

Find different multifamily meetups in your area and network with these people. Multifamily investing not only has great tax benefits, but it also can yield some great returns. We did a case study recently of a man who invested $100k 9 years ago and kept putting his proceeds into more apartment deals over and over again. After 9 years, he had gotten back more than $1.3M and still had $1.6M in equity in these apartment deals. He also had $65k in passive income annually. It was a great success story that I would be happy to share with you. We did a webinar and dug deep into how he did this. PM me and I can send you the link if you want. 

My advice would be to look for a good multifamily owner operator to invest with and spread the money into 2-3 deals. The returns are solid and the tax benefits are great, especially if you become a "real estate professional" (750 hours per year on RE activities). You could potentially get your ordinary income tax down to $0 with the bonus depreciation. 

Once a month we host an educational case study from one of our passive apartment investors. Our typical attendance is 500-800 people. We hope you can join us for our next amazing story with Dr. Zhi Wang. Dr. Wang was able to retire early, put his child through a top college, and make millions... all from his passive apartment investments. 

If you use Costar or have a rep you work with they can help you. Costar allows you to pull a list of brokers in any metro and sort by volume of deals completed. Most reps will give you this info in exchange for a demo with them. 

It really depends on how long this lasts. Our collections were in line for the month of April and even beat March collections by a small percent. However, May could be a different story. I think what has helped us is that we are reaching out to all of our 3,000+ residents and making sure they know how to take advantage of these government programs and unemployment benefits. We are constantly communicating with the residents and trying to keep them educated and equipped to weather this storm with us. 

Investment Info:

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

260 Unit B class apartment complex I own and manage.

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

The opportunity for a value add strategy.

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

Broker brought it to me and I won the deal in a highest and best situation due to my footprint in the Humble market.

How did you finance this deal?

Agency Debt.

How did you add value to the deal?

Upgrade common areas and interior units.

What was the outcome?

Spike in cash flow and a current valuation that more than doubles investors money.

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

Worked with the listing broker.