Don't Believe The Hype Out There

[Gino Barbaro]

Don't believe the hype and misinformation out there.

This is the fourth deal we've closed this year.

1. There still are fantastic deals and more will be hitting the market

2. You need to go big in multifamily to make money

3. It may be challenging right now, but the cycle is shifting

4. Get out there and network with all the brokers in your market

I would love to hear what some of the hype you're all hearing out there. Please share below or DM me.

Here are the details:

• 33 Units, $4.5 Million.
• A 2008 build with a mix of 2 & 3-bed Townhomes.
• This checked all of our Buy Right Criteria©. Great median income, unit mix, age, and location.
• Financing:
• Credit Union --> 80% Ltc, 25 Yr. AM, 1 Yr I/O
• Self Funded

It was sourced from a broker relationship. This is the fourth deal with this broker just this year!

We closed on a four plex in April, followed by a 62 and 67 unit with the same agent.

Why is this “small” 33 unit life changing?

Purchase price is 4.5 million. Appraisal for post renovation is 5.5 million.

1 million equity for one deal and around 9,000 per month in cash flow once stabilized is life changing to me, along with the cost segregation.

You can make money in real estate in so many ways, whether you're @Jay Hinrichs funding deals and developing, or @Brian Burke syndicating, or wholesaling, buying single family homes, fixing and flipping, short term rentals, etc.

The key is to pick you vehicle and master it.

I would be remiss to say that I believe multifamily is the holy grail of real estate investing. But I didn't start with a 100 unit. I started with a tri plex, met Jake and then started buying larger deals.

The key is to treat real estate as a business. At Jake & Gino, I say we are creating multifamily entrepreneurs!

All to say behaviors are belief driven. If you believe the hype and there are no deals and you need to go big, then your actions will mirror your beliefs.

If you think you can close a 6 unit, then you eventually close it, and then move on to a larger deal.

Be prepared for the opportunities that are about to hit the market!

All the best,

Gino