All Forum Posts by: Josh Eitingon

westportnky.com

Hi All,

I haven't been on bigger pockets in a long time but, I wanted to give an update to the BP community about our progress so far.  We are approaching 18 months into the project.  We hit some pretty big hurdles on the front end of the deal.  Despite thorough diligence, getting final permit approval was a challenge.  Codes had changed and that resulted in some pretty extensive costs to meet current codes.  Finally, with approvals we were able to move full speed ahead.   The project definitely had a stigma which after about a year and consistent marketing/events/open houses we feel that we definitely changed the market's perception of the community.  We have closed 2 of the 7 units and 3 additional are in contract set to close within the next 30 days.  Average sale price is coming in around ~$560,000, well above budget.  With the closing of the third unit next week debt will be paid off and all others will go towards the return of investor principal and profit.

My investors have been getting monthly updates and I've stayed completely transparent throughout the process.  Even with the delays and added costs we are trending ahead of total projections. Construction is wrapping up in the next 6-8 weeks and then we'll have 6 months to sell two completed units to hit our initially projected schedule.  

I can write pages and pages but, I'll cut myself off and will actively answer questions if interested.

Yes,  the next one is on Thursday, March 3rd.  Hotel Vianna  in Westbury.   Hope to see you there!

Ask to hear about or see similar loans that they have closed to the type that you are looking to do.  Anyone mortgage broker/ lender can say that it's in their wheelhouse but, try to get some proof if you are going to that person cold.  

I'm cautiously replying to this thread with a different perspective.

**Disclaimer- I work for a education / coaching company. 

Without calling out companies, I know that this world can be a bit of a dirty world where there are many 'gurus'/ mentors that do take advantage of people where those people have no way of making their investment into the education services a worthwhile one.  

I paid a size-able amount money as a client of Elite Apartment Coaching 3 years ago. I considered a few others but, working closely and one on one with people actually in the business was very important to me. My first deal was a 20 unit apartment building in 2012 which I sold for a profit of triple my investment into coaching on that first deal. They encouraged me to go bigger than I otherwise would have started and served as my backstop and coach throughout. Since then, I control over 5MM worth of real estate. I have syndicated my deals in various ways. I did this working full time where now I'm in a place where I could take the jump and go for it full time or continue with my path working both plans simultaneously. To me, I now justify the cost as an accelerator above and beyond my more calculated approach that would have had me started with an SFR and working my way up.

What I have seen from an insider's view is that it is all about your resources.  If you have significantly more $ than the 30k that you plan to invest, I 100% see the value of the fee being more of a consultation fee for us (as mentioned above- not all companies create the same successes) to ensure that you are buying and managing right.  If you are starting with less but, have resources (network, time, etc) that will allow you to play in a larger deal size, I could also see the investment making sense.  Otherwise, I agree with what most in this post are saying that if you are considering taking a sizable portion of your liquidity and putting it into an education platform it is a bad idea.

Please take it easy on me bpers-- just offering an opinion from the other side of the coin.  

Best of luck to everyone- happy to give my advice on this subject (without selling anything) to anyone that is interested.

Hey Garrett,

You too!  For interiors, it was around 125,000 per unit.  

We've got to catch up soon,

Josh

It varies, it is just a matter of strategy.  When getting started (especially if you have investors), there is a lot of value in being able to turnaround and exit properties in a shorter time frame.  More fees in a shorted period of time and the ability to re-deploy those investors dollars.  

Alternatively, for a quality asset, there is nothing better than being able to hold the deal for a long time paying down principal, depreciation benefits etc.  

Even if they bought wrong, there is always the opportunity for the seller to re-deploy whatever equity they have in the property and they may believe it could be better utilized elsewhere.

In today's market, you definitely see people 'riding the wave' trying to sell their property for no reason other than a pie in the sky valuation that they think there may be a chance to achieve.  Understanding the seller's story/ motivation is always helpful.

Best of luck!  

Building True Wealth through Owning Apartment Buildings

Portfolio Diversity and Legacy/Wealth Building Through Apartment Investing

There are tremendous advantages to investing in apartments:

• Mitigated risk, while tenants pay down your mortgage
• Cash flow and equity build up over time
• Extremely competitive lending environment
• Tax Advantages
• Doing just one deal a year can create income for life

Plenty of networking as the meeting begins and we always leave time at the end.

This meeting has consistently been at capacity. Please pre-register to grab your seat. If you have attended before the cost of the meeting is $25. First timers are free.

http://www.limultifamilyinvestorgroup.com/

We host this meeting at the Hotel Viana, and kick off the meeting at 6:30pm.

Hosted by: Elite Apartment Coaching (www.eliteapartmentcoaching.com)

@Vincent Crane you set me up for a selfish plug of www.eliteapartmentcoaching.com -- started as a client there.

Investors started with immediate network and have gradually grown and expanded year over year.  

@Jay Hinrichs thanks!  Yes, plan to sell to homeowners directly.  Targeting 500k - optimistic that we can out perform that # but, most want to move quick with the market where it is