All Forum Posts by: Brandon Wells

@Michael K Gallagher They have been talking about this for a few years now which has in turned caused an increase in popularity of alternative options.  Depending on your unit count, E-Premium is a great option.  If you don't have that many units, I would recommend looking into Rhino.

Side Note: Although Columbus in rapidly growing, the local government makes it really hard on owners of multifamily assets.  The amount of hoops you have to jump through to do anything there is mind boggling.

@Andrew Flora late to the game but reading through the responses you got, I hope you reached out to an attorney for clarification.  Is it correct that in order to 3rd party managed it needs be done by someone who is a managing broker or someone employed by one.  However, if the asset is over a certain size (I want to say 15 units, could be 12), that you also have to be a licensed provider, even if you own it.  Good luck!

@Jason Malabute I actually purchased a 12 unit there 16 months ago and just sold it for almost double.  Also, prior to starting my company I was the Regional Manager, for about 4 years, for the largest apartment community there.  If you want to talk in more depth of what you can accomplish there via multifamily I would love to connect.

@Tricia O'Brien I use Landman and Beatty for all my evictions.

I have seen this done 1st hand.  It is a big undertaking and requires you to wear a lot of hats throughout the transition but in the end it can produce some amazing results.

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $315,000
Cash invested: $110,000
Sale price: $550,000

My partner and I held it for 16 months and in that time we took the average rent from $415 per unit up to $650 plus $25 water bill back. We did standard unit turns on 8 of the units in that time and one full upgrade. On the full upgrade we did, we received a $200 monthly rental premium. Benefited from taking some things I learned running multimillion dollar investment grade assets down to the small multifamily asset.

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

I worked for a regional management company who had over 20,000 units under management. I had a front seat to see what type of advantages the owners had in investing in multifamily.

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

It was publicly listed in an outlying market. It was listed at $350,000 and we negotiated giving up our commission (my partner and I are brokers) and got the property for $315,000. My partner fronted the purchase money and I used my experience and expertise to operate it.

How did you finance this deal?

Traditional financing. 5 year term amortized over 25 years with 20% down.

How did you add value to the deal?

Forced appreciation by immediately improving operations by increasing rent/ancillary income and then stabilizing the expenses.

Increased the rents by $200 at takeover. Added in pet fee's and water reimbursement fee's. Was able to leverage contractor/supplier relationships to lower the expenses.

What was the outcome?

Held for 16 months, stabilized and recently sold for 550k cash, as-is.

Lessons learned? Challenges?

12 units is more time consuming than any 250 unit+ property I was responsible for.

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

M & M held the listing. We did our financing through First Bank of Richmond.

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $315,000
Cash invested: $110,000
Sale price: $550,000

Asset was owned and ran by a mom & pop who held it as their 1st investment. I was familiar with the area from being a Regional Manager for a 180 unit asset for 4 years prior. I was able to immediately recognize the rents were significantly under market and that there was some ancillary income opportunities to be had.

My partner and I held it for 16 months and in that time we took the average rent from $415 per unit up to $650 plus $25 water bill back. We did standard unit turns on 8 of the units in that time and one full upgrade. On the full upgrade we did, we received a $200 monthly rental premium. Benefited from taking some things I learned running multimillion dollar investment grade assets down to the small multifamily asset.

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

I worked for a regional management company who had over 20,000 units under management. I had a front seat to see what type of advantages the owners had in investing in multifamily.

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

It was publicly listed in an outlying market. It was listed at $350,000 and we negotiated giving up our commission (my partner and I are brokers) and got the property for $315,000. My partner fronted the purchase money and I used my experience and expertise to operate it.

How did you finance this deal?

Traditional financing. 5 year term amortized over 25 years with 20% down.

How did you add value to the deal?

Forced appreciation by immediately improving operations by increasing rent/ancillary income and then stabilizing the expenses.

Increased the rents by $200 at takeover. Added in pet fee's and water reimbursement fee's. Was able to leverage contractor/supplier relationships to lower the expenses.

What was the outcome?

Held for 16 months, stabilized and recently sold for 550k cash, as-is.

Lessons learned? Challenges?

12 units is more time consuming than any 250 unit+ property I was responsible for.

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

M & M held the listing. We did our financing through First Bank of Richmond.

@Matt Lorentsen you should check out ResMan.  

Looking forward to seeing everyone.  It is from 6-8pm.  If you can't be here until after it starts, that is ok.  We would still love to have you.

@Kevin Zhang looking forward to meeting you.  Please feel free to bring a friend.