Bought 146 unit to end the year!

[Gino Barbaro]

Hi BP community,

I wanted to share our most recent purchase, a 146 unit mom and pop in Knoxville, TN that we bought in house. For all of you investors out there who say the market is overpriced, you are right. And for those investors out there who say there are deals out there, you are also right.

Henry Ford said it best "If you think you can or can't do a thing, you are right".

The reason for me sharing this purchase is to let everyone out there know that they have the ability to create their own future.  This deal took over eight months to close, and we had to negotiate a repair credit that the seller said no to at first. The deal also has an owner financing component to it. The more problems you can solve, the better the deal you are going to get.

We are in this deal at $26,000 per unit, with 33 2 beds, and the remaining one beds.  Rents are going to $600 per month for the one beds, with RUBS being added as well.

It is going to take 12-18 months to reposition, a lot of work, and the goal is to refinance it to agency.

In this part of the cycle, please be careful where you are buying, and try to limit your downside risk. We had to look through many deals before we found this one through a referral from a team member.

No deal is better than a bad deal, and continue to network and underwrite deals. When the market does correct, you will be one of the lucky ones to be at the right place at the right time, like Jake & I were back in 2013 with our first purchase.

I wish you all a Happy New Year, and continue to grow as a person!

with gratitude,

Gino

[Gino Barbaro]

@Kevin Dean

Hi Kevin

Great question

We went into Louisville this year and toured several off market deals and we found one.  If you are looking at deals on line, you will have to look at dozens to find one. If you have relationships with brokers and you let them know what your buying criteria is, you will have to look at much less.

Gino