All Forum Posts by: Justin Elliott

In June, we are excited to have Drew Kniffin from Knighthawk Equity.

Drew Kniffin did his first large deal in March of 2018. For the rest of that calendar year, it was a disaster. Vacancy remained high (it was supposed to go down), collections remained low (it was supposed to go up), and Drew was writing $10,000 checks into the property to keep it afloat (cashflow was supposed to come out).

Come see how Drew turned it around, and how he turned it from one of his worst performing properties into perhaps his bestselling property. Learn what lessons he learned, and how you can use those same lessons in your real estate career.

Drew Kniffin has a corporate finance and real estate investing career that spans a decade. After finishing graduate school (JD/MBA), Drew was an investment banker providing valuation analysis and preparing small companies for refinance or sale events. From there Andrew worked at a Fortune 500 company, where he negotiated and implemented Joint Ventures in Asia, Central America, and South America. Drew began his full time real estate career in 2008, focusing on acquiring cash-flowing properties that maintain value throughout the economic cycle.

In addition to being an investor, Drew has been featured on multiple podcasts and also coaches aspiring multifamily real estate investors. Today, Drew controls 1,500 units across the United States with a collective valuation in excess of $85 million. Drew lives in Seattle, WA with his wife and four tax credits.

What's the strangest thing you've seen while touring commercial real estate.  There have to be some great stories on this platform.  I'll start.  I toured a mix used building with a coffee shop on the first floor that also sold unmentionable intimate products.  They had their manufacturing in the basement unit and were shipping through internet sales and KILLING it.  I didn't end up buying that one for unrelated reasons but.....AWKWARD!

Generally speaking maybe 5-10% but for this scenario I would say less equity than normal because there is less risk since it's not a new acquisition.  I've given over 10% but that was on my first deal when I needed experience and net worth.  Here it looks like the trade off for the guarantor is just risk of default which seams very low if it's stabilized at this point. 

I won't be in Augusta on May 18th but would love to make one of these if I'm in town. Great idea Jeremy.

A couple of thoughts

• Networking meetings.  I have one and I would recommend another one.  DM me and I'll send links.
• Invest in a deal passively with a sponsor with the intent to build a relationship and bring deals for them to KP
• Make sure you have proper liquidity.  Most KPs have less of a problem providing net worth and experience and more of an issue providing cash.  
• Bring a deal to a sponsor 
• Raise money for a deal to start to build your net worth and experience

I just invested in Crypto through a Solo 401k.  50/50 Bitcoin/Etherium. A couple of things that I thought about.

1.) I didn't invest more than I could stomach losing.  

2.) I didn't use liquid funds, I'm a syndicator and need liquidity to secure deals and get financing.

3.) Not having invested liquid funds gives me a long term approach, nothing worse then checking stock or crypto prices everyday.  I'm interested in where it will be in 20 years.

4.) I think we are at a point where Crypto is starting to be accepted into the mainstream but not fully adopted so were are still relatively early. But that's all speculation and I am in NO WAY a crypto expert. In fact I know very little about it but I personally think it's prudent to get involved with it at this point on some level.

Look up Ryan Fischer with Remax, Jason Reed with Remax or "The Duplex Chick" Kari Lundin. They all have a good pulse on the small multifamily listings in MSP. Let me know if you need contact info.  

Good Luck,

Justin

Is there anyone one in the Bigger Pockets world that lives in the Davenport Iowa area that would want to be boots on the ground for an apartment syndication?  let's chat!

Justin Elliott

A Deep Dive into an Atlanta Multifamily Deal with Brian Burke

In May we are excited to have Brian Burke deep dive on how combining two properties into one created massive value.

Learn how Praxis Capital bought two neighboring properties in Atlanta from two different sellers and two different brokers, combined them into one 540 unit property, and increased the value by 50% in less than two years, even in the face of multiple disasters.

Brian Burke is President / CEO of Praxis Capital Inc, a vertically integrated real estate private equity investment firm.

He has acquired over half a billion dollars’ worth of real estate over a 30-year career including over 3,000 multifamily units and more than 700 single-family homes, with the assistance of proprietary software that he wrote himself. Brian has subdivided land, built homes, and constructed self-storage, but really prefers to reposition existing multifamily properties.

He is the author of The Hands-Off Investor: An Insider’s Guide to Investing in Passive Real Estate Syndications, and is a frequent public speaker at real estate conferences and events nationwide.

Make Sure to Register Using the Eventbrite Link - https://www.eventbrite.com/e/1...

In April we are excited to have Nate Ohlrich, Chris Pomerleau & Collin Schwartz discuss the 23 unit Multifamily Reposition in Omaha, Nebraska.

Nate Ohlrich is a real estate investor, entrepreneur and broker from Omaha, Nebraska. Finding his “why” and clarifying his goals has helped him find compelling investment opportunities for himself and others. Nate just released a new book titled Fearless Investing, available for free at RedElmCapital.com.

Chris Pomerleau is an attorney, mediator, and real estate investor and Coach.

Collin Schwartz is a full-time real estate investor and owner of Bricktown Management.