All Forum Posts by: Garrett Hawk

Investment Info:

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

Purchase price: $2,000,000
Cash invested: $1

76 unit value add apartment complex

Currently cash flowing at a 9 cap rate with 17 empties

The plan is to invest 20,000 in renovations into the empty units and have it performing at a 14.5 cap rate.

Property was purchased with the seller carrying 10% and the other 10% was secured through equity in other properties.

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

The large amount of upside in the deal. Also, the ability to refinance and bring home a much higher return.

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

The listing was public on the MLS. I negotiated it as a buyer/agent.

How did you finance this deal?

Partial seller finance. The bank financed the rest.

Hello Aamir,

I would broaden my strategy if you are wanting to scale faster. Most people who tackle hundreds of doors are syndicator and own a small portion of the actual deals. If you are wanting to go at it alone, I would look into doing deals with higher returns and raise private money to be your "lender" and not have them at an equity position.

Hope this helps!

Hello Haley,

It sounds like this is a wholesale deal. They advertise "cash only" because they have the property under contract time and do not have time to put in a financing contingency. 

Let me know if you'd like more help!

Hello Elijah,

I personally don't pay for deals. I would say the main thing to focus on is networking. I have several wholesalers that feed me deals everyday. I also check craigslist several times a day. Then one you have some deals under your belt, my suggestion is making contacts with various banks and letting them know that you would like to purchase foreclosures.

Great to hear, Justin! I really love when husbands and wives learn the business together. I would suggest buying a nice, cash flowing rental property to start. I'm not sure what the market is like where you live. I personally like to start with a 1.5%-2% rent rule.

Hello Nataliya,

I have been metored in the past and still continue to mentor others to this day. I think it is definitely valuable. I would just watch how much they charge in the beginning before you do your first few deals.

Hello Lian,

I have discovered that it's good to use a CPA that is experienced in real estate investing. There are some strategies that could be overlooked including "accelerated depreciation". That has been the biggest tax deduction that I missed starting out.  Having this  knowledge early on, will help you scale faster.

Let me know if you'd like anymore help!

@Account Closed Those are some good tips! I currently own 140 units in what would be considered C- neighborhoods. I'm in a moderately low crime area, just have people with low incomes. I also rent to people with section 8 (excluding HUD). For these properties, if I'm not hitting the 3% rule, I don't even consider it.

Hey Alec,

Grant's message has shifted over the years. If you listen to the podcasts on BP, he tells you to skip the small deals and go BIG. However, I know people that has known him before he was THEE Grant Cardone, he was also a house flipper and used multiple strategies. He has recently used his audience to become a syndicator and build his own portfolio. However, the last few months, Grant has even talked about doing "value add" 4 Plex deals to make your first 500k and then roll it into class B-A large multi-family properties.

I think the majority of Grant's advice is great! I just don't think his advice is an exact blue print.

Best of luck on your future deals!

@Andrea Cole Hello Andrea, Looks like you are in a great position! I think there are several options you can move towards as far as early retirement through passive rental income. If I can be of service in any way, please let me know!