Deals Come When You Are In The Game!

[Tim Ryan]

When I go into a new market I try to buy a property quickly. It gives instant credibility. Once you buy a few the deals start coming from all places you wouldn't expect.

I met a business owner in town and became friends. One day he calls me and says he and his wife want to sell a building they own and they thought of me.  This is in Wisconsin and I'm in Southern California. He wanted to call me first? How cool.

Well, It's because I was seen as a player, a closer (meaning I close on deals I put under contract).

I said, "I didn't know you owned a building" and to that he said "yes, it's the building with two - first floor retail spaces and 9 apartments on the corner".

Dang, just what I love. Multifamily and with strong retail tenants as a bonus. 

The rental income at purchase was $8400/mo.  I paid $600k and got a local bank to loan 75% for 5-years at 3.85%.  I brought in a partner who funded the downpayment.  We didn't need to rehab except for a couple units when they became empty and we used cash flow (so no additional capital needed).

The rents are now $10,700/mo and we are cash flowing well.  It's a great property with still a lot of upside potential. For instance we are raising rents now because we put in a laundry facility.

Morale of the story is to close on a deal quickly, then be the go to guy for off-market deals by doing what you say you'll do.