All Forum Posts by: Garreton Smith

Hey BP Fam, 

I have an off-market 30 unit opportunity in Albany, NY. The property is currently underperforming and can be repositioned. The property is currently cash flowing. The value-add is the cosmetic fixtures to each unit and some plumbing/ roofing upgrades. I have this opportunity and I'm looking for an equity partner to help fund this deal. I will control the day-day operations I have contractors, architects, engineers, and property management in Albany, NY already. A great BRRR opportunity, I can share exact details. Let's connect

PP- 2.4M (Nego)

Construction- 650K-700K

Rents- Current 600-900 

Market rents- 1000-1200

Hey @Jonathan Greene my offer is way below their asking, I'm assuming that's why they want the appraised value of the property. Their listing price is close to what it would sell fixed up. The asking price isn't realistic. 

 Hey Cameron, 

Definitely some great questions to ask the tenants! Thanks for your feedback. Are you in the MF space?

Hey Kash 

The current cap rate is 7% 

Eviction in ATL can be as fast as 24 hours.  You need to give a written or verbal notice to the tenant who's in arrears.

Hello BP Fam, 

I've been putting in offers all week for flip deals. One seller wants me to get an appraisal done (out of my pocket) to go with my offer. The house is extremely distressed and needs a lot of work done. I called an appraiser and he said he won't be able to pull comps on a distressed property the most he can do in his report is assume an ARV and minus it from what he thinks construction will be. Should I take this gamble? What are your thoughts?

Hello BP Fam, 

I've been running numbers on several value-add commercial apartment buildings. Most of the deals I'm finding are on LoopNet. I wanted to share some numbers and deal breakdowns with anyone who wouldn't mind taking a look and giving their input. I'm looking to jump into these kinds of deals in the near future and with the right partnership. 

21 Unit ATL Deal

Numbers
⁃ Purchase Price $2,100,000
⁃ Rehab $280,000
⁃ Closing cost/ acquisition fees etc 5% of PP
⁃ Lender will request 30% of Purchase 20% of rehab liquid
⁃ $630,000 + 56,000

Current condition
⁃ property is underperforming
⁃ 50% of tenants are in arrears

⁃ each unit needs cosmetic upgrades

The value add
⁃ clear each unit in arrears
⁃ Upgrade each unit $8000-10,000
⁃ Raise rents to market value $1000-1200

Long term/ Exit
⁃ Turnover each unit with market rent. Increase the NOI (net operating income)
⁃ Refinance out of short-term loan until fixed arm. Pull out 700K initial investment
⁃ Raise the value of the building to pull out additional 150-200K
⁃ Keep on rent roll and monthly cash flow with $0 in the property

Hi BP Fam,

I’m looking to connect with an experienced attorney who’s done a double closing for an off-market deal. Would be great if they’re familiar with wholesaling as well. I need an attorney for a NYC deal ASAP. Thanks look forward to connecting. 

@Jeff Wydra I'll have a post coming out with all of the numbers and process. But short numbers are 

PP 275K 

Reno 180K 

ARV 600-650K

I would recommend getting an idea from the planning or zoning board first. It might be simple to add that 6th unit they'll have their requirements so consult with an inspector before construction as well. Let's keep in touch we're doing pretty much the same thing.

@Jason Shackleton @Dustin Murphy @Shaun McQuiston Excited to share the process with everyone. Thanks!!

Hi BP Family,

Excited to share with you guys. I picked up my first commercial building. 5 units in Albany, NY. Value add deal we’re gutting each unit. The plan is to modernize the apartments, raise rents and keep for cash flow. Follow me on the journey!! Some pictures for context, phase 1 demolition.