All Forum Posts by: Nico Salgado

Hey man, we raised the capital for this one. 2.5M capital raise. We did a 70/30 split with an 8% preferred return. We have been making monthly distributions since Feb 2023. I am not sure how much we can share here regarding returns due to any SEC restrictions. But I would be happy to jump on a call!

Investment Info:

Large multi-family (5+ units) commercial investment investment.

Purchase price: $5,850,000

This is a 2 property, 44 unit portfolio in Lakeland FL

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

I am a multifamily investor, always seeking opportunities in the greater Tampa MSA. This portfolio was a large acquisition for my team but we pulled it off!

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

I was tracking this deal off market for a bit because I knew the seller. Yet I wasn't able to get it under contract until it hit market. I was lucky in that we purchased this portfolio in the Fall of 2022 right in the midst of the unprecedented interest rate hikes. This left a lot of buyers "pencils down" and I had less competition than usual.

How did you finance this deal?

We used a federal credit union to purchase the 16 unit and a local bank to purchase the 28 unit. Both with different terms, and both pretty aggressive at the time of purchase. They liked these assets and believe strongly in the local market.

How did you add value to the deal?

We renovated the majority of the units at this point and we are near completion with our beautification plan to the grounds.

What was the outcome?

We are currently leading the area in rents. We have our 2 beds renting at 1400/month plus 50 in RUBS.

Lessons learned? Challenges?

We learned that the first year of acquisition is typically very challenging and we can experience higher than normal turnover and delinquency because we did not place tenants. Many tenants were placed by prior ownership who may have been just trying to keep occupancy up for sale rather than place good, paying residents. We also got hit with the dreaded insurance bill that doubled this past year. That being said, we are still cash flowing, even given those aforementioned challenges.

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

We had a great experience working with Mark Savarese, Dakota Brown and the team at Franklin St. I highly recommend using them!

Anytime! Good luck on your journey! 

Hey @Moe Khan, I highly recommend the Jake and Gino program. I joined 3 years ago and my life changed instantaneously. I am not saying you will get rich quick, I am not saying you will be financially free or leave your job tomorrow. @Hadar Orkibi above offers some great insight on this front. Hadar has become an invaluable resource for me on my journey as well as many others in the Jake and Gino Community. @Gino Barbaro and his wife Julia are incredible go-givers and have created an investing community of family. There is way too much for me to discuss here, but I will hop on a call to share my experience at any time. I am not paid by Jake and Gino, but I firmly believe in the power and support their community offers its members. 

What has contributed most to my growth is getting my "at-bats". By that, I mean taking massive action. I have failed a variety of times, yet every time I take massive action, I take a giant leap forward (even if I don't hit my target)

Hey @Lawrence Kutsovsky, I joined Jake and Gino in November 2019. It was the best investment I have ever made and has changed my life. I would have never gotten to where I am today without the program. You have to think of it like this - There is an interview process to get into this group. The people they choose to join are like-minded, hard-working, and likely to succeed in the industry. It's not a given because you will need to follow the framework, work hard, and not quit. But you will get to where you want to go much faster with this program. When you join, you will be greeted by a huge network of investors with a variety of experiences; all with the go-giver mentality. You will be placed in an accountability pod with people you may end up becoming partners for life with. You will be coached at analyzing markets, deals, scaling your business, etc. I would be delighted to hop on a call with you, there really is too much to talk about. 

Thanks for chiming in @Percy N. I’m beginning to see that as well. 3-4 people seems to be the right number. Anything more muddles the responsibilities. 

Hey BiggerPockets world, 

I have built a couple of different teams to operate as GPs in a couple of markets. I feel it is always a work in progress but it's something that really excites me. I am curious to know some basics from other operators, such as... How many people do you have (want) on your GP team? How do you split up roles, duties and/or job titles?

I generally underwrite a deal a day (or someone on my team does). We like to talk with brokers regarding most of these deals to stay top of mind with them, even if we don't submit an offer. We are also looking at off-market deals but oftentimes it's challenging to get a hold of financials so UW can be tricky. 

This will be a really impactful event. People will get ton of actionable advice and next steps for ramping up their real estate business! @Yosef Lee