All Forum Posts by: Simcha Davidman

@Brandon C. thanks. I agree, it's a really solid place. I enjoy my visits out there too!

@Brandon C. how has your experience been? Did you move forward with anything?

@Will Fraser I know I'm a bit late to this thread. What are ordinances/local laws like for str? I've been focused on OKC for multifamily, but I'm also starting to consider it for high end str. Please dm me if you're willing to discuss offline, or perhaps we can meet up next time I'm out there (probably end of Jan or Feb).

Thanks.

@Hank Olken best of luck on your journey - both in finding yourself and your successes! Your heart's certainly in the right place!

We need to be really careful about blaming capitalism for the bad things which are (have been) happening in the US today. Crony capitalism is more like it, where connected people (whether that be through money, power, good looks - whatever) gain unfair advantage which would NOT otherwise be dictated by market forces.

Capitalism, on the other hand, should not be influenced by those things. Just the market, good ol' supply and demand. If you provide a good or service at a price which people want to pay, you'll make boatloads of money. If you don't, or if someone comes along and gets the good or service better or cheaper, you're out of luck unless you can get even better or cheaper. That's capitalism. And the government should step out of the way, and be limited to protecting people from getting screwed. Unfortunately, that's not the case in many instances - the govt gets into business (literally and figuratively) which it has no business getting into, or giving deals/power/access/barriers, etc to those it favors at the expense of - not just those it doesn't favor - but the market (i.e. the entire country and its citizens) as a whole.

Another thing which must be considered is that the current system is designed to keep people on the bottom on the bottom. And to push those in the middle to the bottom. This is intentional - and it shouldn't prevent you from paying less in taxes. If there are causes you care about, go help those causes. But don't contribute unnecessarily to the system which is ruining people in the exact manner which is disconcerting to you.

Just one man's opinion :)

@Jordan Mummau following up here. I like how you laid out your questions and want to hear the rest of the story :)

Thanks @Dmitriy Fomichenko!

Thanks @Nicholas Weckstein! It definitely has a lot of potential. Now it just depends on execution.

Investment Info:

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

Purchase price: $1,625,000
Cash invested: $390,000

Purchased 30 condo townhome units to hold as rentals, and sell them off piecemeal to owner occupants.

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

This deal has 3 viable exit options: 3) flip to another investor - I got the first look and there are investors interested at above my basis; 2) hold it as rentals long term, pushing rents to market on turns/renewals; 1) the real value - sell them off to owner occupants for substantially higher than my basis in the property.

Although I'm looking to buy and hold long term, the upside on the sell-off option is very compelling. And as they say, you don't find good deals, you create them.

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

My property manager (who knows I can close) brought this to me first after the seller (long time friend of hers) told her he wants to sell.

How did you finance this deal?

Raised the equity and got a local bank to lend 80% plus up to 80% of reno costs.

How did you add value to the deal?

We're going to upgrade units on turns and sell them to owner occupants, unlocking the real potential in the asset.

What was the outcome?

Just got started... (collections in August are at 100% of occupied unit, and 1 unit is on the mls)

Lessons learned? Challenges?

1. You need to be willing to expand your comfort zone and create/take advantage of opportunities that are outside your wheelhouse;
2. Push yourself. This raise was 50% larger than my previous one. I had commitments for the entire amount within 27 hours of my initial email, and eventually had a waitlist greater than 100%.

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

Property manager who is well connected in the market. If you're interested in connecting, dm me.

Only since I posted above, I'll add my brief experience with Real Pro and Baily (Storer) Depping.

I was looking at 2 separate deals of theirs, had a long phone call with Bailey and exchanged several emails about them. I don't remember offhand if these were wholesale deals, but she made it crystal clear to me that a lot of what they "sell" is just wholesaling. They don't own most of their "inventory" - and she was straightforward about that. But this is why they don't wait for/allow bank financing - and I've never bought a property through a wholesaler, but I think that's standard.

The thing that rubbed me the wrong way was that the company has a policy of not negotiating until after the buyer wires the deposit to the escrow agent/attorney. But she was upfront about this too, and the law firm they use for title and closing seems legit. Personally, I did not feel comfortable sending my money BEFORE negotiating - because I was not going to pay the full list price for these, and I did not want to just send a lower amount and have them just send it right back. But that's their policy and she clearly explained that in the beginning.

If I came across a Real Pro listing that better fit my criteria, I would consider doing business with them.

This is not an endorsement for Real Pro. I have no relationship with them and I've never done a deal with them. But I think this thread's gotten out of hand and very far from objectivity.

@Rodrick Darnell Toney and @Account Closed what'd y'all end up doing?