All Forum Posts by: Joseph Cornwell

I use Technetitle Inc, in Milford, Ohio near Cincinnati. They are the best I have done hundreds of closings with them. 

@Andrew Syrios Thank you! 

Investment Info:

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

Purchase price: $1,650,000
Cash invested: $440,000

28 Units, 1 and 2 beds near the University of Cincinnati. We will be converting to student rentals.
PP: 1,650,000.00 @7% cap
ARV: 2,500,000.00+

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

I have been trying to get into midsized multifamily 20+ units for several years. I also recently moved in student rentals, so this combined both of those!

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

Listing broker sent it to me, we originally went into contract at 1.85MM but we found some cap ex items such as roof, plumbing, that needed repairs and negotiated a 200k reduction. With rates jumping up 2% I had much less competition at the time.

How did you finance this deal?

Commercial Bank 80% LTV on total project costs, 2.2MM with rehab funding.

How did you add value to the deal?

We will be renovating most of the interiors and doing cap ex repairs, raising rents to market and marketing to students.

What was the outcome?

Just started but we have an as complete appraisal of 2.5MM.

Lessons learned? Challenges?

Keep going until you get what you want, stay consistent and persistent. I am so glad I never gave up, and hopefully this will lead me to scaling up faster with more deals.

Investment Info:

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

Purchase price: $1,650,000
Cash invested: $440,000

I have been buying small multifamily 2-8 units buy and hold for the past 5 years, and I wanted to shift into mid sized multifamily to scale up faster about 3 years ago and I found myself in the most competitive market in our history. I am based in Cincinnati and invest locally, and I tried everything I could. Cold calling, direct mail, all the local brokers, networking, and I found a few deals that made sense and made offers but never won a single contract for 3 years. I was often told we had 20+ offers, some of them going for 100k per door or more, no inspections, no financing contingency were common. Finally in June, I had a listing broker send me a deal that made sense. We had a slight dip in competition when rates jumped up 2% in June. Which allowed me to FINALLY get a deal under contract.
28 Units, 1 and 2 beds.
PP: 1,650,000.00 @7% cap
ARV: 2,500,000.00+
I will be renovating most of the interiors, and some exterior cap ex work. We will be marketing strictly to students, this property is very close to the University of Cincinnati. Moving to market rents for the student market, making interiors much nicer, reserved parking, etc. Average rents should move 300-400 per door within 24 months.
So for anyone who is looking for your first or next deal to scale up, keep trying, do not give up. Sometimes your next call, email, search will lead to success. I wanted to give up on this asset class many many times, but I keep swinging at it. I am looking forward to this projects turn around, and many more to come!

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

I have been trying to get into midsized multifamily 20+ units for several years. I also recently moved in student rentals, so this combined both of those!

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

Listing broker sent it to me, we originally went into contract at 1.85MM but we found some cap ex items such as roof, plumbing, that needed repairs and negotiated a 200k reduction. With rates jumping up 2% I had much less competition at the time.

How did you finance this deal?

Commercial Bank 80% LTV on total project costs, 2.2MM with rehab funding.

How did you add value to the deal?

We will be renovating most of the interiors and doing cap ex repairs, raising rents to market and marketing to students.

What was the outcome?

Just started but we have an as complete appraisal of 2.5MM.

Lessons learned? Challenges?

Keep going until you get what you want, stay consistent and persistent. I am so glad I never gave up, and hopefully this will lead me to scaling up faster with more deals.

Quote from @Greg R.:

Unfortunately I've been away for a few months while taking care of some personal matters, so I haven't been able to keep up on discussions. 

However, several months ago there were ample amount of folks here insisting that a market crash/ correction was impossible and that prices would only continue to increase.

Curious if there are still people out there who feel this way? If so, I'd love to see some data that supports your view that the market isn't going to crash/ correct. 

I do not think that you can have data the proves your market won't crash or correct at some point. We are obviously looking at metrics such as days on market, price reductions, active inventory levels, etc. I think this particular market we are in is hyper local. For example, I am in Cincinnati. Each neighborhood near me can behave drastically different, price points as well. On the residential side, lower price points are actually not moving as fast meaning under 200k. The high demand suburbs are moving in a day or two at higher price points 300-600k. That is what people are looking for, and its a family and emotional motivation, not a logical one. As for investment property, turnkey properties in good areas are moving very fast still. Property that needs a heavy lift are sitting longer as most people are not wanting to take on a 6+ month rehab. Luckily that is my bread and butter so I am finding deals easier to come by right now, than 6-18 months ago. Again, its the micro markets and nuanced. I think it will be this way across the country. 

@Eric W. I am biased, but I love investing in Cincinnati. I still find 1% or better deals on and off market. They are not easy necessarily and you still have to make good deals, they do not just happen, but they are out there. If you want to learn more about my market, feel free to reach out anytime! 

@David Chase I am happy to help, feel free to connect and we can set up a call! 

@Daniel Estepp I am a Cincinnati BRRRR investor as well. As for the LLC that is really going to be situational, some of my properties I have them, others I do not. Feel free to reach out with any specific questions about Cincinnati or anything else. If you are just trying to set one up, it is really simple. Best of luck!

@Phillip Weickert is the best real estate focused CPA in Cincinnati. Reach out to him, he does all of my REI tax stuff.

@Aaron Hunt I am happy to assist in Cincinnati, I am an investor/agent, I own and GC company, and have other referrals as well. Feel free to reach out if you have any questions or want to chat!