All Forum Posts by: Steven Gesis

@Johnathan Norman if you are the owner you can elect to accept or not the terms of section 8, do not know of any laws that are in place that mandate this requirement you are refrencing

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Cleveland, Ohio

@Joe Sz

Are the properties all in one geographic area ? You can likley consolidate them into a single commercial style loan, freeing you up from the 10 property constraint.

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@Logan Merrick

Foundation issues are not a big deal if the cost allows for the major repair - meaning the deal is sooo good!!! On the other hand many will pass on the opportunity and for most it's beyond the "comfort zone" so you stand a chance to come in with an aggressive offer

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Originally posted by @Taylor L.:

Nice looking deal, it sounds like you have a lot of upside. How much Cap Ex are you going to have to put into it to get the 25% rent bump?

Taylor, Thanks, yes it was a great project, we renovated nealry all 112 units with new kitchens, baths, flooring, digital equipment like smart locks, nest thermostats, installed a common area on the 8th floor with new windows overlooking the lake and then some other cool things like EV station, Dog Park - all common areas, new office - really changed the entire dynamic of the sapce. The capex was north of $1M

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Investment Info:

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

112 Unit Multi-Family Value-Add

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

Diversify our portfolio among SFR and MF

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

Off-Market, we worked with local brokers to identify a strategic vision and partnership to deploy capital for our fund

How did you finance this deal?

The deal was funded equity and debt via a syndication

How did you add value to the deal?

We are market makers, we were able to reposition this building into a B product, with a massive CAPEX for renovating units and interiors, as well as infusing a boatload of amenities for residents.

What was the outcome?

Able to raise rents north of 25%

Lessons learned? Challenges?

Every single one of these deals and construction mobilization is a lesson

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

Smartland

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Originally posted by @Charles Richardson:

I found a 96 unit apartment complex for sale for 21 million. I lost my job last month. I have no money. My credit score is 600. I’m 46 years old. I’ve been in the rat race all my life. I have no family or friends with money. Today is my first challenge from reading The Miracle Morning. I got up at 4am this morning opened the door let God in Meditated. My question to you the BiggerPockets family is how can I acquire this apartment complex with no money and no credit. How can I get my name on his contract and fine investment partners. Any Information would be good information. Thank you in advance

Charles, great question! Not easy to answer, love the ambition, the grab the bull the horns attitude, but what I can say with certainty is you need to begin to crawl first, if you can manage to get on your feet, keep working at this, maintain the momentum and mindset, you will be able to do this, but first you will need a little experience at least, let alone the capital and the credit score. Good news - apartment building are traded everyday, this is a good start, you can begin by analyzing this one and setting your goals to eventually buy this building or another similar one. In the meantime begin with some small wins, get some flow, then strike

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Originally posted by @Michaela G.:

I like to think - what if it was me? What if some previous landlord had these tenants and they stole and the landlord couldn't be bothered and thus I let them move in, because they seemed to have a spotless record?

What if the previous landlord had bothered and thought about other landlords that will encounter those people? I wouldn't have rented to them.

And maybe this is not the first time these people did this and previous landlords couldn't be bothered with filing and thus you never knew about their previous behavior and rented to them? If there had been a judgment against them in small claims court you probably wouldn't have rented to them.

Maybe think about the fact, that this might be bigger than your monthly fee and that you'd hope that other landlords would have done something to warn you about tenant like this.

Michaela-

If you file a charge and it goes nowhere, unfortunately, the result will still be that these are phantom thieves :) But you have a valid point as a landlord this information would be helpful to me.

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Originally posted by @Dennis M.:

Once you get the new appliances and the property cleaned redone and back to where it needs to be . Please shoot me a message before you fill the vacancy . ...I’d love to rent a nice place from a guy like you !!

Yes, come on over, but you will need to pass a background check....

I may have failed to mention that I acquired this tenant when I got the property, so my team did not place them, maybe this clarity will help you out

1 Vote

Originally posted by @Joe Splitrock:

Originally posted by @Steven Gesis:

Originally posted by @Nathan Gesner:

Two toilets = $400

Two vanities = $800

Furnace = $2,000

Hot water tank = $1,000

Kitchen cabinets and sink = $3,000

Kitchen appliances = $2,000

You're looking at approximately $9,000 in losses. Why would you willingly eat the cost and let the criminal go free? if that's the way you do business, please hire me as your accountant!

Seriously, you should press charges immediately. You should have all the tenant's information so law enforcement can track them down quickly. Even if you don't recover your stuff, the criminal should be punished and it would save some other Landlord from falling prey.

Nathan-

This is a lite version of the cost :)

On my end having a few hundred single-family doors now, I am always caught at this crossing with what to do, do you take it as a business expense and move-on as this is an outlier.

Lets be frank, what will the police do? This is not a case they will want to place much attention to, I can file, I can make it super tough on the people, the result will be minimal - I do not think they will haul them off to jail. Jail will not solve my loss issue.

Insurance is a maybe still....

Its not about having a ton of capital and having expendable or available resources, its merely a business decision, not an emotional one, it sucks it happened, but its just an issue that needs to be handled, the question is what is the most effective time of handling this issue.

I value my time @ $300/hr. plus an attorney on the low end will be $200/hr. - then a few people on my staff and a ding on my insurance - all I am saying is that I am already halfway to $10k, I can just bite the bullet make a business decision and just handle it. Maybe you right, maybe at least file the insurance claim.

When you file a report with the police, this is just the beginning of the process, as you saw I referenced my cost of time above, filing a police complaint will take hours and hours and hours if they do nab him, then more hours and more hours..... I can spend this time thinking about making more investments and figure out how I can recoop the loss as quickly and effectively as possible.

I have filed police reports and insurance claims and your time estimates are way over from my experience. Police report will take an hour tops. The guy had access to the property and had motive. They may go to question the guy and find some of the stuff sitting out in plain sight. Or you could go look on Craigslist and you may find the stuff up there for sale. Then the police can arrange to meet the person to buy it and he will be arrested. Worst case you file the report and nothing comes of it, but at least you made some effort to stop this guy from doing it to the next landlord.

I am surprised how many people just dismiss calling the police with the assumption they will do nothing. It would take 5 minutes to call them, less time than you have spent here on BP. As far as where time is better spent, I guarantee nobody on BP will recover your belongings, but there is a chance with the police.

Joe, good point! I am not discounting the police report nor the insurance claim, I am just saying things happen and maybe you just need to spend time making the business decision and then sharing the wealth of information on BP :)

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Originally posted by @Jay Hinrichs:

@Steven Gesis buying courthouse steps houses over the last 3 decades I have this happen about once every 5 years by the time I buy it and I get possession its down to the sheetrock LOL.. not much we can do about that.

Exactly, sometimes nothing you can do, just roll with the punches, look at the big picture

1 Vote

All Forum Posts by: Steven Gesis

Steven Gesis has started 30 posts and replied 866 times.

Post: legally required to accept section 8 in cleveland now?

Post: Up to 10 properties banks finance after that?

Post: Would you offer on a house that has foundation issues?

Post: Value Add Multi-Family Syndication Cleveland, Ohio

Post: Value Add Multi-Family Syndication Cleveland, Ohio

Post: How can I buy a 96 unit apartment complex

Post: Tenant moved out and so did the mechanical equipment... more....

Post: Tenant moved out and so did the mechanical equipment... more....

Post: Tenant moved out and so did the mechanical equipment... more....

Post: Tenant moved out and so did the mechanical equipment... more....