How I bought 2 apartment buildings in 2 weeks!

How I bought 2 apartment buildings in 2 weeks!

Charles A.Pro Member
Rental Property Investor · Jacksonville, FL · Member since 2015 · 208 posts · 282 votes
I was that guy that was buying one or two duplexes a year over 5-6 years. That worked well on the cash flow and financing front. Then I started listening to a podcast by someone on BP. (Can’t mention his name because BP may delete this post) This guy kept talking about “the law of the first multi family (apartment complex) deal”. At first,I thought it was some superstitious nonsense. But I kept listening nonetheless. I also thought I’d need to go the syndication route to ever experience that law in my own life.Huge downpayment,multiple investors et al. Anyway, What I’ve found out is if we are determined enough,we will move mountains. So I pulled out all the dead equity that existed in all my duplexes in multiple cash out refys between May-July 2017. I put the entire $200k into a grade B 18-unit deal in a class A neighborhood in Cleveland OH. That deal closed in September 2017. This last month of July,2018,I closed on 2 small apartment complexes within a space of 2 weeks! A grade B 12-unit in a class C neighborhood of Jacksonville FL and a grade C 16-unit in Cleveland Heights,OH,a class B neighborhood. All the details and every last nuance of this crazy twin deal will be specifically detailed on my next blog post in the members’ blog section. I’m not a designated BP blogger,so you probably won’t find it “featured”.I will however link to it as a comment to this thread once it’s published. So,stay tuned. The law of the fist deal is real,folks! I’m living proof. So just do your first deal first!By hook or by crook. Finally,to the owner of that podcast,(you know yourself): Send me a PM.I’d love to come on your pod to tell your lucky listeners how right you are! And how awesome!! CA.
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Gino BarbaroPro Member
Rental Property Investor · St Augustine, FL · Member since 2014 · 2k+ posts · 1k+ votes
8y

@Charles A.

The law of the first multifamily deal is MOMENTUM. Once you close your first deal, you're in the game and brokers and the entire community will take you seriously. Congrats on the deals.  J Scott says that you either own zero deals or many deals. Very few investors only buy one deal.

Now it's time to scale and seek out private money or continue to Refi & Roll

Gino

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  • Gino BarbaroPro Member
    Rental Property Investor · St Augustine, FL · Member since 2014 · 2k+ posts · 1k+ votes
    8y

    @Kyle Schlosser

    He made the podcast about building a business, not just real estate!

    thanks for the kind words

    Gino

  • Specialist · Louisville, KY · Member since 2017 · 166 posts · 154 votes
    8y
    @Gino Barbaro Absolutely. It was very interesting. #MIH
  • Rental Property Investor · Staten Island, NY · Member since 2017 · 75 posts · 13 votes
    8y

    @Charles A. Awesome. Can't wait to read the details in the blog.  I'm downloading the podcast now to watch during my commute to work tomorrow. I'd love to get into apartment buildings.  Keep up the excellent work.

  • Dan HandfordPro Member
    Investor · Lexington, SC · Member since 2018 · 779 posts · 501 votes
    8y

    @Charles A. Congrats!

  • Investor · Jacksonville, FL · Member since 2015 · 63 posts · 39 votes
    8y

    So many advantages to multifamilly! 100 units with a 100 roofs is so much more difficult to maintain than 100 units under 1 roof.  The ability to scale much quicker.  Congrats, my friend!

  • John CasmonPro Member
    Cincinnati, OH · Member since 2013 · 1k+ posts · 1k+ votes
    8y

    @Charles A. Congrats on the deals! I grew up in Cleveland Heights and still have family there. If you ever need an unbiased opinion on the area, let me know! 

  • Private Equity Account Executive · Cleveland, OH · Member since 2018 · 48 posts · 15 votes
    8y
    Originally posted by @Charles A.:
    I was that guy that was buying one or two duplexes a year over 5-6 years. That worked well on the cash flow and financing front.

    Then I started listening to a podcast by someone on BP. (Can’t mention his name because BP may delete this post)

    This guy kept talking about “the law of the first multi family (apartment complex) deal”. At first,I thought it was some superstitious nonsense. But I kept listening nonetheless.

    I also thought I’d need to go the syndication route to ever experience that law in my own life.Huge downpayment,multiple investors et al.

    Anyway, What I’ve found out is if we are determined enough,we will move mountains.

    So I pulled out all the dead equity that existed in all my duplexes in multiple cash out refys between May-July 2017. I put the entire $200k into a grade B 18-unit deal in a class A neighborhood in Cleveland OH. That deal closed in September 2017.

    This last month of July,2018,I closed on 2 small apartment complexes within a space of 2 weeks! A grade B 12-unit in a class C neighborhood of Jacksonville FL and a grade C 16-unit in Cleveland Heights,OH,a class B neighborhood.

    All the details and every last nuance of this crazy twin deal will be specifically detailed on my next blog post in the members’ blog section.

    I’m not a designated BP blogger,so you probably won’t find it “featured”.I will however link to it as a comment to this thread once it’s published. So,stay tuned.

    The law of the fist deal is real,folks! I’m living proof. So just do your first deal first!By hook or by crook.

    Finally,to the owner of that podcast,(you know yourself): Send me a PM.I’d love to come on your pod to tell your lucky listeners how right you are! And how awesome!!

    CA.

     Congratulations Charles and good luck growing your portfolio!

    Best regards,

    Renee

  • Rental Property Investor · Cleveland, OH · Member since 2016 · 653 posts · 769 votes
    8y

    Awesome! I look forward to hearing more! I'm in the same boat you were (buying duplexes) and am diligently working on scaling up into the big leagues!

  • Rental Property Investor · Las Vegas, NV · Member since 2018 · 133 posts · 171 votes
    8y

    @Charles A. Congrats and I found your posts very inspiring.

    Three things you said stood out to me is that:

    1.)  You didn't let the naysayers deter you from investing where you have a steadfast conviction to invest, I love that.  I am having that same problem right now myself one particular area I love everyone hates but I like you have knowledge of billions of dollars of future investment because I do my homework and research.  It's amazing the wealth of information that land sales and permits issued can tell you, lol.

    2.) Knowing your market first hand.  That is SO crucial in my opinion because it gave you the insight into knowing you could invest where others only see negatives and risks.  Again I have the same problem some people don't like my target market but they don't know it intimately like I do either.  How do you really know the potential of a market (or risks for that matter) if you have never been there or only know what you have been told by someone else?

    3.) Buying in or close to an urban area near employers is very important to me, and buying out of state in smaller suburbs is too risky for my taste as well.   If you do that and you also don't know your market that seems like double risk that I am not willing to take.

    Congrats again and I look forward to reading your blog for more details.

  • Rental Property Investor · Denver, CO · Member since 2017 · 50 posts · 23 votes
    8y

    @Charles A. congratulations on your success.  Looking forward to your blog post.  

  • Developer · . · Member since 2014 · 520 posts · 162 votes
    8y

    @Charles A. congratulations and best wishes for future success.  @Michael Blank is the best!

  • Investor · Victoria , TX · Member since 2015 · 38 posts · 11 votes
    8y

    @Charles A. Congrats! Its good to hear stories like this. I'm really looking forward to the details in your blog post, I'm trying to walk where you've walked.

  • Real Estate Investor · Takoma Park, MD · Member since 2011 · 74 posts · 38 votes
    8y

    @Charles A. congratulations! Can’t wait to read the stories of your deals in the blog post. Meanwhile, I’m pulling down the podcast episodes mentioned in this thread.

  • Rental Property Investor · Miramar, FL · Member since 2018 · 18 posts · 8 votes
    8y

    @Charles A. Very inspirational. Thank you for sharing. 

    Javier G.

  • Charles A.Pro Member
    OP
    Rental Property Investor · Jacksonville, FL · Member since 2015 · 208 posts · 282 votes
    7y

    Hi guys!!

    It took a bit more time than I anticipated but here below is the blog post I promised, enjoy!:

    https://www.biggerpockets.com/blogs/8290/77702-a-transition-to-apartment-complexes

  • Charles A.Pro Member
    OP
    Rental Property Investor · Jacksonville, FL · Member since 2015 · 208 posts · 282 votes
    7y

    If the link doesn't work, just got to the member's blog page anyway and look for my post.

    You could also go on my profile and look up my blogs.

    Hope everyone had a happy thanksgiving!

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