Hi @Account Closed
This is Swanny. I just invested $100,000 in an A class apartment complex as a passive in Peoria Arizona. I also have 9 apartment complexes that I own primarily in Lake County, Ohio. I do have one 24 unit in Akron Ohio too.
I find myself in the harvest period on my apartment complexes I purchased in Ohio originally between 2015 and 2019. Refinanced a few in 2021, as the valuation of each complex. One, a 24 unit in Painesville Ohio that we purchased in July of 2019. That one we refinanced this past August of 2021 two years later. We put it on a new Freddie non recourse loan, first three years interest only, 10 years fixed at 3.88%. We only invested about $350,000 at a purchase price of $760,000. It appraised this past August at $1,500,000 and we took back $700,000 tax free cash back and we made about $150,000 cash flow for the 2 years of ownership too. We did the same on a 21 unit that we owned longer for 4 years and had about $200,000 cash flow and took back $600,000 cash back tax free refi at a 3.6% fixed for 10 years in March of 2021. We only invested about $300,000 in that one about 5 years ago at an $800,000 purchase price. We also sold a 12 unit that we owned in Euclid, Ohio July of 2021 for about $700,000 and we only had about $280,000 debt left on it no only invested $125,000 into that one originally.
In the next 3-9 months I plan on refinancing another and selling another complex too to further reap the harvest. Although, as you said, tough to find new deals that make sense.
So, I studied and had meetings with a syndicator in Arizona and one of the GP’s live here in San Diego too and have been following their progress along with mine. I investigated, had meeting on Zoom, looked closely at their progression of their business model and really believe in the A class product they are acquiring now and invested $100,000 into that product. It is a A class product that after extensive review believe that this may be their biggest most lucrative exit for investors yet.
I mention this, because as a passive in deals with horses that are proven and get pocket listing deal flow that meets their business model, I feel like I know what I am investing in, unlike crypto or stocks or other types of investments. It is tangible and to me with the right team much safer for me.
Don’t get me wrong I have millions of dollars that people want to invest with me in my next deal and I am beginning to here from my brokers about a few they have in their pipeline and will be buying more as soon as I get that deal flow in the markets I have invested in and like too.
I love talking shop and just retired from my teaching job last school year and work on my RE assets full time now. Check out BP podcast 238 to see how I started and overcame paralysis by analysis about 11 years ago, making only approximately $80,000 combined family income before taxes in a crazy high state income tax state like California!!
Always here to help others!! If you change the way you look at things, the things you look at, change right before you eyes. It did for me and now Swanny is financially free.
If I can do it, anyone can!!!
Swanny
