All Forum Posts by: Ryan Marrs

I agree with Michael Slockers, upcoming area's near midtown/downtown are great rental investments: Pearl District, Kindall Whittier, Owen Park, and now maybe even Crosby Heights (newest upcoming area, and a few years behind the others). Brady Heights is pretty good to just don't go past Pine unless you're in Reservoir Hill. Not that you can't do well in North Tulsa, it's just a lot different rental model that you need to operate with.

We have an informal networking meetup call Tulsa Real Estate Investors Meetup that gets together around downtown. Lot's of people doing great stuff so come on out! Next one is April 13th at 5:30pm Eerie Abby Ales.

Sorry for my slow reply, I haven't been on for a bit. @ kevin 

@Kevin Mehner I have meet with an attorny in town experienced in SEC law and was able to learn a lot from him. I'd be happy to give you his contact info and tell you what I learned. 

Investment Info:

Single-family residence buy & hold investment in Owasso.

Purchase price: $57,500
Cash invested: $11,000

Single Family Rehab in Owasso. Purchased for $57,500 and putting $18,000 into it. Was pretty gross...Pop or something all over in one bedroom. I'm on the 3rd week of rehab and plan to finish by next week. The project has gone smoothly (helps having the right contractors). I Did this deal on my own. The ARV Appraisal came back at $127,500. I should be all in below $76,000, or 60% of value.

Attached are some

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

Great below market deal for long term buy and hold

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

Found the deal through word of mouth. Made an offer after initial walk-though. Was able to bring it down an additional $6k after inspection.

How did you finance this deal?

Used a bank and did a rehab loan.

How did you add value to the deal?

Managing the rehab and fully financed the deal with my credit and cash in.

What was the outcome?

Currently at week 3 of rehab, on track to finish early next week. Will rent for $1000-$1100 per month. Going to be all in at 60% of property value.

The work has started!

On commercial deals it usually takes over 60 days to close. We did rough estimates before offer and got quotes in while in the due diligent phase. We've done enough deals to know around what things will cost, but it can be a good idea to get estimates for the big line items like roof, foundation, etc. 

Investment Info:

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

Contributors:
Will Karstetter

My business partner Will and I just purchased our first property using an equity money partner. This deal was a distressed 8-plex that was just down the street from one of my first properties (a 4 unit with a 2 bedroom house on the same abstract). It turns out the 8-plex was extremely distressed and the seller was highly motivated. We managed to get this and a 10 unit we are looking to pass on to another investor since we can do both rehabs at once. 

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

We've been looking to purchase distressed multifamily deals 4-50 unit using an equity money partner that would have high enough cash flow to make sense. This was our first equity partner deal and the numbers look great. I also have a very compatible 4 unit that is down the street that has been a great property, so I know what the property should be doing.

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

We found it while looking at my 4 unit down the street. There was a for sale sign in the front yard. Negotiated over the phone, and after first walk through and seeing the distressed condition got the seller to come down a bit more.

How did you finance this deal?

Used an equity cash partner with a preferred return and bought with cash. Using a bank ARV loan for the rehab.

How did you add value to the deal?

I was able to bring confidence to the deal with my 4 units property history. I also had a great relationship with a property manager that worked in this city and was able to get them to take on the project and rehab for a very good rate since they would manage it later.

What was the outcome?

In process now. have nearly all of the tenants out and starting demo on the vacant units. Plan on finishing up within 4 months and under budget.

Lessons learned? Challenges?

always get two quotes on any big line items before considering it a secure estimate to be used on purchasing decisions. We got a repair quote for the roof, which turned out to be not accurate. Increased the repair budget a bit. Luckily we have a lot of equity left in the deal.

I'll have to catch up next time!

Brian, how long of a track record and how many deals until you think raising private equity is interested? 

I had what I thought was an extremely long appraisal wait on my first mobile home park deal. I think it took 4 weeks. The first round some of the appraisal prices came in around 6k...Got me thinking I needed to become an appraiser.