All Forum Posts by: Corey Thompson

I've got a small fb group where I share my journey. I'd love to see some new faces in the group.

We cut our teeth doing sub to, owner finance, and SFH. Now we are into MHP's and small apartment investing. We show the work in a closed group to keep our tenants and sellers from seeing everything we do on our personal page.

I forgot one key piece of the puzzle.  Private money lender will let us buy down interest rate by giving him equity.  We are pulling +-400k out of our first 26 unit apartment deal that we've owned a little over a year.  We are finding that if we solve the management problem small towns present, there's huge equity on these smaller complexes.  

Something we have started doing is creating training videos on the jobs we do, so training a new staff member won't take 100% of our time.  

I love the feed back. Maybe we just exchange the cheaper 8% interest debt on some performing assets that are still on 12% HML and let them season more before we refi with a bank. Use the extra cashflow to hire and train.

We started buying mobile home parks in 2017. In 2018 we moved into small apartment complexes. We are basically using the BRRRR method to do this. We are refinancing out of 1.2 million in hard money loans. On top of that, one of our lenders wants to park 2 million with us for 2 years, interest only.

This glut of money is actually a problem.  We are still stabilizing 90 of out 300 doors.  24 of which are complete rehabs.  We need more human capital, and the pains of getting that human capital hired and trained takes our personal resources to do it.

We buy in rural Texas, and self manage everything. And due to the high interest loans we acquire properties with, equity is a must to get the DSCR to a 1.3 to 1.6 so there's cash flow to pay the employees we need.

This is a very odd and good problem to have I guess.  

How would ya'll deploy the money?

I was blocked on facebook for "bullying" scott.  Guess I'll take the fight to youtube and put it on a paid fb ad.

I'll be interviewing him in the next couple of months.  On a recent podcast he had found some problems with a roof and was asking for 3 million in concessions.   He knows if he's even going to invest in it before he sees the numbers because he walks the product and studies the **** out of the locations demographics.  You can go to youtube and find him walking complexes at night asking the tenants questions.  Most of these flybynightsydicators never even visit the property.  I recently busted one that i interviewed a few months back paying 10k to get on a fake magazine.  I had to go back and edit my interview because now he's getting sued 8 ways from Sunday.  You'll never have that problem with Grant.

We picked up 57 units in two small towns.  16 in one town, 41 in the neighboring town.  800k.  Gross rents were 18k per month, will be 35k once stabilized.

We bought these on hard money, 100% financed. (HML brought 600k, seller carried 200k in second lien postion)

These were apartment deals 3 & 4, for us.  Everyone has been bought with hard money from a seller that bought them during the savings and loans crisis.

Deals are out there.  Just have to find them.

@Adam Harper lay an 8 sideways

We have 300 units and keep $1500 per door. We also have a 300K LOC and will be getting an additional LOC against 4 acres we own or liquidate it.

At the beginning of 2018 we had 30 units.  At the end we had 300.  This summer we were losing 30 tenants per month with only a 6 person staff trying to keep up.  We still are turning units that went vacant from 2 months ago.  We were in no way prepared for this.  We are refinancing our first apartment complex (we bought it owner finance) and are pulling +- 400k out (our original DP) which we also plan on just keeping as cash reserves until we stabilize some assets.

We will also be hiring 2 more employees.  

@Erin Lamb look up candies dirt out of Dallas.  I'm about to tag scott to get his to respond to this thread.  I'll also tag the lead reporter for candies dirt.  Our fb group sent two contractors to jail last year.  so its worth a shot.

We prefer dead 8.  No less than 20% though.