All Forum Posts by: Joseph Graeve

Big News! I wouldn’t have been able to do this without this online community and all of the tips I've learned here.

I’m excited to share that we've just secured a contract for a 40-unit multifamily property in Orlando, Florida!
Purchase Price: $5,000,000 Seller Financing: 70% at an incredible 4.71% interest rate—WOW!
Equity Raise Needed: $2,540,000
My Role: General Partner (GP) – Sourcing, Underwriting, and Asset Management -
17.51% IRR and 1.58 Equity multiple over 3 yr

This deal is a fantastic opportunity to build wealth and deliver value to our investors. I’m passionate about creating win-win scenarios like this one! If you’re interested in joining as a capital partner or Co-GP, I’d love to connect and jump on a video call to show you the pitch deck. Feel free to message me on BP or email me at [email protected], include a couple times you're available for a call and we will get something on the books.

Big News! I wouldn’t have been able to do this without this online community and all of the tips I've learned here.

I’m excited to share that we've just secured a contract for a 40-unit multifamily property in Orlando, Florida!
Purchase Price: $5,000,000 Seller Financing: 70% at an incredible 4.71% interest rate—WOW!
Equity Raise Needed: $2,540,000
My Role: General Partner (GP) – Sourcing, Underwriting, and Asset Management -
17.51% IRR and 1.58 Equity multiple over 3 yr

This deal is a fantastic opportunity to build wealth and deliver value to our investors. I’m passionate about creating win-win scenarios like this one! If you’re interested in joining as a capital partner or Co-GP, I’d love to connect and jump on a video call to show you the pitch deck. Feel free to message me on BP or email me at [email protected], include a couple times you're available for a call and we will get something on the books.

Investment Info:

Small multi-family (2-4 units) fix & flip investment.

Purchase price: $580,000
Cash invested: $150,000

Increased Gross rents from $5100 to $7250 per month.
$720k all in price. After rent increase, valuation at $850k.
Before and after pictures here - https://drive.google.com/file/d/1rtcRBfEeoKxNteVOOBw1Duqs_8-...

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

I love the idea of value add multifamily because you have the rents to fall back on if the primary plan of flipping doesn't pan out like you hope.

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

I found it through a wholesaler.

How did you finance this deal?

1 year Bridge loan with renovation funds.

How did you add value to the deal?

I renovated all 4 units. Complete renovation. I also added Laundry rentals to two units to increase gross income.

What was the outcome?

Amazing outcome. I achieved the rents I projected and a higher value than I projected.

Lessons learned? Challenges?

I slightly underestimated the renovation budgets. I am glad I self managed only if to learn the lessons I did to be able to manage my future property managers but the next time I do it I will use a property manager even through a short flip project.

When you are purchasing a multifamily property, the seller will be advertising the property performs at a certain cap rate. Their cap rate is based (among other things) on the current property taxes that they pay. If I were to purchase (at a higher price) then the taxes I pay would be very different from their taxes. So how do you normally approach these conversations when you are negotating. If the seller says "its a solid 7 cap" and its more of a 5-6 cap after you purchase and the taxes go up, do you mention it?
More importantly, when you are looking at your exit scenario of selling, the same question applies but in reverse, are you calculating the new tax rate the next buyer will pay and reverse calculating a sale price based on the market cap rate? Or do you figure a sale price based on market cap rate but with the property tax expense you pay currently?

I have a gutted duplex structure on 6875 sqft lot in the heart of Old Colorado City. Great Location! You need to see this lot to know the extent of work that needs to be done. It has been fully gutted including the siding. It has been temporarily fenced off due to safety 

concerns. I have Engineering plans already drawn up by a licensed engineer in town. It needs about $300k-350k in renovation cost to get it fully renovated. I am selling it for $195,000 or best offer.
In the past it has been used as a four-plex and it is shown as a four-plex on the county assessor site. It couldn't be licensed as a four-plex because its only zoned R-2 but there is a floorplan made that shows the space being made into a four-plex with 2 bed 1 bath each. Rent for each 2 bedroom 1 bath unit could be 1000/month so 4000/month gross
Serious investor only inquire.

address is 1326 w kiowa st

Hey @Account Closed. I am in Colorado Springs as well flipping houses here in the city and up in Denver. I have close to 40 deals under my belt. I can help out with how to best navigate getting another deal under your belt. Lets meet up this week. Good job getting your first one!

So, it totally can be done. When houses change hands they need to set up new leases with the tenants anyways so when you do that with the new tenant you can have them sign a lease option with you . the lease being normal and the separate agreement for the option having them put up X amount of dollars to you whether all at once or over a few months. On this type of house you should get at least 3k for an option fee. That option fee is so that they have the option to lock in their price now on the property. Have them lock in the price to buy for $125k or bargain your way down to 100k or 110k with the owner and then have the tenant sign an option for $120k. Any questions?

@Drew Wilson I am a O-2 down at Schriever AFB. I currently house hack a 4 bedroom and am renovating a four plex to be able to house hack with the privacy for my girlfriend and I but still the good rental income.

I also Flip a decent amount of properties in Colorado as well as have experience in lease options and subject to deals. Lets set up a time to meet, id be happy to offer any advice or just talk about the business.

I live in Colorado Springs and would love to drive up and meet with you or everyone commenting here. we should set up a dinner in the back party rooms of a Panera somewhere so its private.

On your first point, I think that there are plenty of deals out there so you shouldn't settle for a deal that would have no cashflow after you finance. Also both of those lenders are going to want first deed of trust and you'll only be able to give it to one. Its rare to find a hard money lender to take 2nd position. I recommend finding private investors at local meetups or on BP to help you put the downpayment down. But still you should have cashflow, It doesn't matter if you don't need it because the cashflow needs to be there to make your investors feel comfortable and to pay for emergencies and things that come up.
I suggest you do the fixer upper one because after you get the financing in place everything else you raise is yours to keep. It will allow you to learn more and see the ins and outs of the business.