All Forum Posts by: Michael Glaspie

Investment Info:

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

Purchase price: $350,000
Cash invested: $150,000

The oldest home in the city turned into an 8-unit short-term rental! We ended up spending more on renovations than expected, however, the property is refinanced and cash-flowing. We ended up leaving a significant amount of equity in the deal. Many more repairs than anticipated.

Haha, touche! Ill get some before and afters linked to the post. 

Investment Info:

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

Purchase price: $350,000
Cash invested: $150,000

The oldest home in the city turned into an 8-unit short-term rental! We ended up spending more on renovations than expected, however, the property is refinanced and cash-flowing. We ended up leaving a significant amount of equity in the deal. Many more repairs than anticipated.

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

We saw the value add opportunity in short-term rentals, while others were looking at long terms.

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

This was on market. We used private money so we were able to present a "cash" offer to the sellers.

How did you finance this deal?

100% private money until we refinanced.

How did you add value to the deal?

Forced appreciation through renovations, followed by securing synthetic leases for refinancing.

What was the outcome?

Left a lot more money in the deal than expected, but we are cash-flowing monthly.

Lessons learned? Challenges?

The older the property the more repairs there will be. I will now begin to increase my contingency bucket by a percentage for every additional 10 years past 20.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

My partners and I are all licensed realtors. We were able to handle the deal ourselves.

 Easy Street ended up burning me in the long run. I have bought more turnkeys since then and I would recommend going to see the properties. Easy Street didn't show me video walkthroughs, only photos. Problem was, they never did the renovations and continued to use the photos from only who knows when. I would avoid turnkey companies who cant give direct answers, won't allow you to visually inspect properties personally, won't allow for a 3rd party inspector to come in, and those who are slow to respond. As I mentioned, there are some solid companies out there, you just have to be careful. 

ADVICE: If anyone is telling you to AVOID or choose any certain firms it is because they have a bias opinion that's either good or they have bad taste in their mouth for whatever reason. Not saying their feelings are not validated, but there are probably a hundred other agents who would give that same firm an opposite opinion. 

We jumped from Keller Williams over to eXp and have interviewed several other companies over the years. My best advise after growing our team from 3 agents to over 83 agents across 8 states, I would recommend you look for a culture that you want. Not a brand. Find a group of like minded individuals who can help you grow they way you want to grow. The information to be a "good" agent is abundant on free sources. Don't make a decision based on "training". Once you learn what you need to learn that right culture should help you make your next decision on which firm would be the best for you. 

If you want to chat about key questions and all that shoot me a DM and I can send over a couple of cheat sheets we have all agents use when shopping for firms

@Alex Martens yessir! Extremely doable. That is how I started and with a great team behind me, strong focus, and clarity, with a little luck, I was able to achieve financial freedom in 3 years before I separated from the military. 

Like @Jeremy Wirths mentioned I have some content on it but be sure to follow @David Pere as well. He is doing some big things in real estate and is still on Active Duty at the moment. 

@Jacobie Frederick like @Jeremy Wirths said I talk about this topic alot with new investors. I am a broker, but started off as an investor. There are alot of factors that come into finding the right solution for you! I would recommend starting off by thinking very hard about what you want most out of your real estate journey. The answer should become pretty clear. 

Investment Info:

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

Purchase price: $290,000

I have been able to purchase 10 student rental units using the BRRRR method. Finding off market deals through a wholesaler is the key. Cashflow is excellent.

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

Looking to diversify my portfolio geographically. I already had a presence in a local market near by, so it was an easy progression.

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

A friend and business partner was already in the market and shared his point of contact.

How did you finance this deal?

I was able to use a revolving line of credit to front the purchase and rehab. I am currently going through the refinance process to recoup my capital and pay off those lines of credit.

How did you add value to the deal?

Traditional renovations and getting them rented.

What was the outcome?

Excellent cashflow and equity capture.

Investment Info:

Other commercial investment investment in Jesup.

Purchase price: $977,000

My team and I closed on a hotel syndication. In this deal, we purchased a property by assuming an existing loan and raising the equity portion. We were able to capture over $800,000 in equity as soon as we purchased it. Our strategy is a 3-5 year hold with a disposition at the end of year 5.

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

Our syndication company was presented an opportunity with an established hotel investor. So, we partnerd with him to make the deal happen.

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

This deal was presented to us. Once we had a chance to do our due diligence, we finalized the deal.

How did you finance this deal?

We operated under a 506c SEC filing to raise the equity position. We assumed the current loan.

How did you add value to the deal?

Through management and operational improvements we will be able to increase value.

What was the outcome?

We successfully captured $800,000 in equity upon close. Now we are implementing our improvement plan.

Lessons learned? Challenges?

Get 3x as many capital commitments as you need to raise. Not everyone will contribute.

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Rock Island.

Purchase price: $105,000
Cash invested: $105,000

I purchased a duplex with the BRRR strategy. Purchase and rehab all cost me $105,000 with the ARV estimated at around $135,000. The rents are $675 on one side and $725 on the other. This property far exceeded the 1% rule. I built a relationship with a 'Turnkey' company, but by leverage business Lines of Credit, I was able to purchase 'like cash' for a steep discount. Ready for the next one!

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

I am now capturing net worth. So the BRRR strategy is a perfect way to still get cashflow but capture equity.

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

I was able to move quickly on a deal with a company that I had a previous relationship with. The speed of the offer allowed me to get a steep discount.

How did you finance this deal?

I used a business Line of Credit to cover purchase and rehab costs. None of my own money went into the deal.

How did you add value to the deal?

By completing renovations on interior and exterior I was able to add roughly $30k in value.

What was the outcome?

Property is cash flow positive

Lessons learned? Challenges?

Cash and confidence in underwriting deals allow the investor to get great deals by moving fast.