All Forum Posts by: Sean Tagge

Investment Info:

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

Purchase price: $3,450,000
Cash invested: $2,000,000

My 4 partners and I just closed on our first syndication deal!
We purchased the property for $3,450,000
We have a renovation budget of $2,628,800
Current rents are $550/mo we plain on raising rents to $725/mo.

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

Being able to scale and help others achieve their financial goals along with my own.

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

We found it through a seller we had already bought another deal from. We used our analysis spreadsheet and previous market knowledge to justify our purchase price. We went back and forth several times with the seller to come to an agreement.

How did you finance this deal?

Bridge/construction loan
25 year am
15 months I/O
3 year balloon
4.75%
75% LTC (of purchase and reno)

How did you add value to the deal?

Better management
Heavy renovations
Rent increases
Occupancy increases
Expenses reductions
Adding in washers and dryers into the units

What was the outcome?

Just bought 5/27/2020 already huge shift in current tenant morale due to us fixing their maintenance issues quickly

Lessons learned? Challenges?

I learned a ton from working with our syndication attorneys on how to mange money for other investors and all of the Private Placement Memorandum documents

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

Get a great team in place focus on your strengths.

Greg Iverson or Aaron Chapman would be your guys to go to. 

Here are some strategies for finding off market deals: all of this can be found on BP with more details of how to do it. 

Pre-Foreclosures visit MemphisDailyNews for more info

Probate

Cold Call or direct mail people with high equity. Visit listsource.com to find out more on that

Code Violations

Evictions

FSBO

Expired Listings

Networking. 

Good luck. 

Here is how we go about waiving that. Let us get inside each proeprty for about 15-20 mins each. Bring your very experienced contractor with you. You take several pics of every room have your contractor give you bids on each house. then boom next day or same day we can make an offer and waive all the inspections. (because we just did the inspections)

Sometimes yes we have bought sight unseen but its usually where we have received many great pictures already from someone we have already worked with or its just a grand freaking slam deal. 

Hey Brandon Thank you for your service. Once COVID calms down we have had weekly AM Masterminds in our office every Thursday. I post when and where the meetings are on the Meet Up area of BP

BS in Biomedical Engineer now partner flipping 250 houses year. 

Yes would rent with a double deposit due to them having no verifiable rental history. (I assume they already did a background check etc and passed that)

Hello @Buyan Thyagarajan

I agree with @Curt Davis and @Jason Hopkins for that area the RV ratio is low 

(RV for your subject property is = $1095 Rent / $140,000 Value = 0.78%). Now it is a great neighborhood and I would bet on some decent appreciation in that area over the years. Northern MS is taking off and getting lot of big name companies expanding into that area. 

Just to give you an idea of comparable sales and rent prices in that area. We have sold several properties in this area all fixed up fully turnkey renovation for the following prices and rents bed bath sqft etc: 

3500 Lakehurst Dr Hornlake 38637
Year Built - 1989
Sq Ft - 1842
Bed 3
Bath 2
Rent $1,195 (was rented before sale)

Final Sales Price $127,500

3750 South Brook Drive Hornlake 38637

Year Built 1986
Sq Ft 1399
Bed 3
Bath 2

Rent $1,100 (Rented before sale)

Sale price: $119,900

Awesome Chris congrats on your success. 

I would be interested in making an offer on that 18 house package. We buy over 250 houses a year. 

Or he could also check out Roofstock.com they sell package deals as well.