All Forum Posts by: Ki Lee

Has anyone taken a motel and did STR with any success?

This motel is not an urban motel that is ridden with crime. This is a motel in the mountains and typical guests are economy travelers. Units are about 200-300sqft and I'm thinking about putting in a tiny kitchenette, a breakfast table and chairs for two, and a murphy bed, and TV. I haven't seen any STR units that are as small as a motel room with very little amenities. At that point, I'm afraid that the guest might not find value above a traditional motel. The value that I can provide a guest above a traditional motel might be - better unit finish and furnishings, better clientele in the community, and more personalized service. Also, all units will be STR, and no motel guests.

Curious as to hear if anyone had any success doing STR in very small spaces that may not offer much more than a traditional hotel/motel.

#STR

#motel

#studio

Apartment investors - what are you favorite low flow toilets and low flow shower heads to reduce water consumption? Do you also see a big ROI on replacing kitchen faucets and bathroom faucets? (brands, model?)

Anybody try just replacing the aerators in the faucets vs replacing entire fixtures?. Would that have similar water savings?

And what % of water savings do you see if you implement all the low flow fixtures?

#apartmentinvesting

#apartmentinvestor

#multifamilyinvestor

#multifamilysyndicator

#realestateinvestor

#BRRRR

#realestateinvesting

#lowflowfixture

#waterconsumption

@Jason Malabute would love to.  DM me

Great advice.  @Rick Pozos comment especially resonates with me.  Imagine if you are a stone cutter.  You keep banging away at the stone with the chisel and hammer.  Nothing happens.  Then on the 500th hit, it cracks open.  What was it that cracked it open?  The last hit?  or the first 499?  You never know when the proverbial stone will crack open.  But as long as you believe that you are doing the right thing, keep your head up and keep hammering away.  For some it may be 400.  for others it may be 800.  It's never the same.  And also in the big scheme of things, how important is it to actually close in 2020 vs 2021?  You may close on 3 in 2021! 

I also had some very heavy time pressure last year for my 1031, and at one point it looked like I would have to pay hefty capital gains.  In the end it worked out, but I was at peace with whatever happened, knowing that I gave it my all.

Feel free to reach out if you want to chat and swap stories.

Best Ever Apartment Syndication Book is a great one.  Also, google "syndication school" and there is a free course on syndication by Theo Hicks.  Also, Emerging real Estate Markets and Multifamily Millions.  I'd suggest listening to Michael Blank Podcast as well.

Talk to as many investors as you can.  Talk to brokers, lenders, property managers, and more.

I recently transitioned from 5 units to 60.  It was a big transition, but learned a ton.  I'd be happy to share my experience if you'd like.

Great question and many great responses.  I do think that you are going about it in a smart way as far as trying to partner with an experienced operator to learn.  Some do this by purchasing a mentorship course and partner with one of the big players in the sandbox.  Another way is to build an organic relationship with an operator.  And it's good that you are clear about what you bring to the table - some capital and hustle.  The partner can provide their experience and network, more capital as necessary.  And the other guys are spot on about the limitations of 506(b).  This year my partner and I went from 5 to 60 units and it was a pretty big transition.  We did learn a lot, and I think it's feasible for anyone who's willing to study and put in the work.  I'd be happy to share some of my experiences lessons learned if you'd like.

Hey BP! 

For apartments with 50 units+ what's your best way of reaching out to owners? 

Cold calls?  Direct mail?  cold text?  email?

I'm sure that a lot of people don't pick up calls from unfamiliar numbers, and especially if it's out of state.  I've heard some report better results with cold texts.  Wondering what your experiences has been.

I'm sure that its different from calling owners for SFRs, because most a lot of the owners will be serious/professional investors.

Let's share ideas and stories!

Edgard, congrats on the purchase and for wanting to move up.  You can absolutely do it.  I do suggest reading as much as possible on it, talk to other investors, and brokers and lenders.  I also made a jump from 5 units to 60 units and it was a big transition.  I live in CA but invest in OH.  If you want, I can send you the market research I did in Columbus and why I chose that market.  DM me.

A lot of great advice so far.  Do you have any real estate experience?  Single family rental?  Duplex?  I do think that apartments are within the reach of a relatively new investor, but as a brand new investor, you will have more challenges.  Having said that, it is doable.  The most feasible way is to partner with a mentor. As @Mack Benson mentioned above, one of the best ways is to find someone that you can add value to.  It's hard to just ask someone to take you under their wing.  You need to figure out how you are going to legitimately add value to the relationship.  Depending on your situation, you may provide the hustle and/or money, and your mentor can provide the guidance/experience, etc.  I actually made a pretty big jump from 5 units to 60 units, but I had some real estate background before making that jump.  Feel free to DM if you want to connect and ask questions

@Remington Lyman thanks!  Yeah, we talked to a few more people and are getting the same answers.  Prob just hot-fill the pot holes and call it a day