All Forum Posts by: Brian Madigan

@Colby Fryar such a great guest! Very exciting. See you there!

Lots of good ones…but if just one for your situation I think David Greene’s Buy, Rehab, Refinance, Rent and Repeat is good.  He defines lots of terms, spends a lot of time discussing who you need to help you and covers nearly all phases of real estate (finding, funding, rehabbing, renting and managing after).  I thought it was a good foundational book even if you don’t use that exact strategy.   Hope to see you on Nov 4!

@Mike Moe yes we should.  It was a great experience.  Learned a ton to apply to the next one.

Success! That was a great Meetup.  Good people, good discussion, good venue.  See you at the next one, 6PM November 4, 2021!

Thanks @Holly Boss for moving this forward with some Social Media presence! @Colby Fryar has been running a meetup for while. It was a struggle over the past year plus with pandemic stuff but we are back to in person meetings. The last four meetings have been awesome! Attendance has varied, we've had double digits a few times. But every time I have met a few more people that have provided tons of value and have been great resources for me going forward. Our goal is to get more and more people to come and grow this into the even greater networking opportunity it can be. And ANYONE can come, it isn't just for MF and BRRRR despite the title.

Investment Info:

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

Purchase price: $1,100,000
Cash invested: $325,000

12 unit apartment in Tucson. Opportunity to update units and reduce costs. Plan for long term hold.

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

Interested in bigger MF due to economy of scale. This was our first legit MF opportunity and we took it!

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

Through networking with brokers. Lots of texts and emails.

How did you finance this deal?

Cash out refinance on a few other properties plus personal cash for the 30% down payment. Conventional commercial mortgage for the rest.

How did you add value to the deal?

Significant inefficiencies in previous management (was managed from afar) with significant opportunities to decrease expenses and decrease vacancy. Most units are dated and our plan is to update each unit as it becomes vacant and once renovated we will increase rents to market value.

What was the outcome?

We will see...plan for a cash out refinance once all units are renovated. Plan to hold the property long term.

Lessons learned? Challenges?

What I learned is that buying a twelve unit is more work that say a duplex. Maybe twice the work, but it is not six times the work. If I am going to put in that much time and effort, going after bigger deals makes so much more sense. Challenges primarily involved getting accurate financials from the seller to complete our due diligence.

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

Conrad Martinez of PICOR was our broker. Robert Motz of Pima Federal Credit Union was our lender. Michelle Cunningham of Fort Lowell Reality is our Property Manager. All are outstanding and we plan to use them for the next project.