All Forum Posts by: Chris Jackson

Congrats @Ori Skloot

yeah but "nobody got rich on SFRs"    lol

"Multifamily is the only path to wealth"  lol

PS we love multifamily. Loving single fam BRRRRs right now though. Gonna stay in SFR BRRRR land for a while. Keeping our powder dry for multifam opportunities when they present themselves.

@Annie G.  Welcome to BP. We love buy and hold. Takes some patience. We are more tortoise than hare. We stay in the game longer. ;)

@Hunter Estess you can use a multifam cap but at the same time be careful to not see other opportunities the SFR portfolio model.

You can in an SFR portfolio also rehab SFRs to the next level and sell off individually for higher prices to owner occupied buyers.

We like to say that we view our SFR portfolios as an SFR portfolio with a multifamily lens. One needs to be careful though because you lose some aspects of economies of scale for that same 88 unit single complex for instance. But you do gain some other positives that come from buying right in the SFR game.

The biggest factor in SFR portfolios are who is the the team that will manage the SFR pool. How far apart is the pool? If close together thats great but if far apart you need to account for in increased cost for your manager or if you get big enough have your own team ;)

@Ericka Luddy contact these guys.

ownamerica.com

Private message me for what you are looking for. I am getting deeper rooted in the SFR world. 26 SFRs this year. I am looking for portfolios as well.

@Patrick Kendrick - love the BRRRR. well done

Thanks for all the kind words. Sorry for the delay in response. I didn't want to PWI (post while intoxicated - some bubbly last night)

@Diane G. - The info is there in those numbers. Purchased at 2.24 and at about a 9 cap. We never self manage. On a multi this size when you want to sell you must be planning almost 2 years in advance. That gives you your T-12 and then need to give yourself about 9-12 months to allow for the entire purchase process.

@Sam Elliott - I prefer multifamily. We have done well with SFRs though this year and will continue to buy more in 2017. There are many threads that go into the very volatile topic of SFR vs MF. I have jumped into a few of those and have decided I am going to just hang back. We have our reasons for our SFR portoflio. We and our investors are happy with it. So while people can debate SFR vs MF all they like, we are over here like we just want yield. Our SFR portfolio is not in ATL. Certain ratios must exist for us to get involved in SFRs. All in to captured rent. If you want to know more about our SFRs contact me directly and we can chat about it. But I don't want to get into the weeds on SFRs vs MF here. Plus I am not the most articulate writer that is going to win over everyone in written debate form with my 'quill' here. On the phone in a discussion people understand why.

@Jesse LeBlanc - Good stuff Jesse. Self awareness is key. It also empowers your team to step up because they know they are looked upon as the ones with those better skillsets in certain areas. 

@Adam Treece - congrats on the quad. Get that bad boy as efficient and cash flowing as possible. Big multis will come. Takes time. Lots of moving parts. I know big multis are sexy right now. I get it. Know what we think is the most sexy thing. Delivering on yield. That should be your concentration always. Yield yield yield. Whether its one SFR, 30 SFRs viewed as one, a 10 unit 20 unit 50 unit 100 plus unit or even flipping. yield (PS whats funny is that when you get into 50-60 unit stuff, they are considered 'small' by all of the players, the brokers lenders etc)

@Stan Sugarman - its not in the inc city of. We have a great PM company we have worked with before that handles bigger buildings. We have a relationship with them. They know how we work so they agreed to take on this 'smaller' building. Heh. I will be in the area in the next few weeks we should meet up while I am in the area for a coffer and/or a beer.

Here ya go @Zach Quick 

Sure - 56 unit is in Decatur GA. Comps are trading in the 7.5 CAP zone (which is a bit nutty to me, we bought at around a 9 CAP)

- all 2 beds
- 96% historical occupancy
- purchased for 2.24MM
- have a 1.4MM loan, pre election 4.03% locked in rate, 25 AM, fixed for 7 years, yield maint first 3 years then step down prepay penalties
- needs new roofs at a 100k capx 
- total capx is about 200k needed
- area and complex are popular for an older demographic which we like because of the stability and lower turn over and less costs to turn over a unit
- rents are low and certain expenses can be lowered with low flow toilets etc
- found deal because of a relationship with broker we have in area after another complex by my partner was sold earlier this year.
- was intended to be a HUD loan assumption with all the HUD loan contracts that have already expired. HUD loan assumption did not work out because of a variety of reason but basically the point was we got to know the deal because of a relationship with the broker already and the fact that we were willing to take on a headache to try to get it closed. Owner didn't want to spend the money on the roofs which started the sales process.
- hold period is anticipated at 5-7 years

Multifamily is hot in the market cycle overall and it is in fact difficult to find good deals that make money. Just have to be patient and keep your feelers out there and take actions when the right one comes along which are fewer these days.

@Diane G. - yes

Ended the year with a 56 unit close yesterday. Super hustle to get it closed by end of year or else some penalties (even though we weren't the ones dragging our feet) heh.

Closed 88 units this year. 20 of which were SFRs. Have 4 SFRs lined up for closing in January.

Putting in an offer on a 50 unit by Tuesday.

Lessons Learned this year:

Networking – We spent more time networking this year and that yielded big results. We are going back to basics. I cant say this enough. Human relationships are built over time from an investment of time. Social media can be used to help continue the relationship but our focus has seen that networking first, blast emails and social media are second. We have definitely created great relationships from social media first however the vast majority of relationships have developed from that human contact first with a continuation from that relationship in other communication forms.

Busyness – You are not as busy as you think. This was the busiest year I have ever known. I am a father of 2 kids under 4 a husband and have a partner in a tech company I help run as well. If you are really really busy take a step back and think about what you are working on. Isolate and focus on tasks. Finish them. Adjust the level and length of your multitasking. Mornings for me are for writing, really thoughtful calls and strategy. On the days I don’t listen to myself and go right into the reactive email world I’ve lost the day. Sometimes that’s unavoidable and the right choice as reactiveness to certain issues are the priority.

Scale – Scale scale scale scale scale. I ask myself all day. What can I automate. Should I not automate that. Can I automate what my partner is working on. Can I do more. Should I do more. Can or should another person do this task better than I am doing. When you challenge yourself and solve those questions you can do more.

Self Awareness – What do I suck at. I really had to ask myself this question and when I answered it I just set it free. I am not good at it that it. I never will be good at it. I don’t want to be good at it. When you set it free and delegate it or have a partner that has those skills you let them work on it and never question their work on it. You suck at it, let them do it and spend your time working on the stuff you are great at and then you can say to partner “We don’t have time to go over this right now as we are crushed on other things but we are putting an all cash offer in at 800k, do you trust me?” “yes Chris I trust you”. That’s how you get more things done with higher levels of excellence with the help of self awareness

Goals and Why are you doing this – This is really important. Set goals yes and course correct to get there. The second part of the why is really important. Is this deal right for us. Sometimes a deal makes money but is not the best deal for you as a company as it will take you offer you vision. Hardest thing for anyone to answer for you. Go to your mentors, go to your partners, walk a long walk. Listen to your gut. Trust your gut. Its so powerful. When you start trusting your gut you can look across the table form a high net worth individual and say no. You will get goose bumps in that moment as you have just decided with confidence about your life. You can go home later and puke and second guess yourself but in that moment you knew it was right and you will trust it again. That’s how you train your self confidence.

Self Confidence – Self confidence is something that takes time. I learned this year that you have to be patient with yourself. Self confidence is viewed as something that is binary , either you have it or you don’t. That’s a bunch of crap if you ask me. When you do something new you are going to feel like you don’t know the answer and yes over time as your confidence develops you know that you will come to the answer but feeling like you don’t have the answer is totally ok. Trusting yourself that you will get to the answer is confidence. That comes across is my meetings with investors, brokers and bankers. I know when my truth is uncertainty and I know when that needs to be expressed. My confidence allows for a vulnerability to be expressed as we all humans don’t have all the answer all the time. Let yourself have time with self confidence. Working through tough problems without giving up allows for you to train your self confidence.

Waking up excited to go to work is a privilege worth the sacrifices to get there and worth the sacrifices to stay here.

Good luck in your 2017. Get at it.

First deal was off MLS. Had been hanging out for a while. One of those, why isnt anybody taking it. Did the due diligence. Found a couple of scary things, renegotiated. Turned out to be a cash flowing winner. Wasn't always rainbows and dandelions but overall a really great cashflower I still have today.

2nd was from a mailer. Voicemail came in, said if you even think of offering me less than X don't even call me. His number was not great but I called anyway. Ended up getting it for less than X.