All Forum Posts by: Zane Belden

@Devin Haertling Well said on the above.

@Bjorik Mutize Since the above investment came together, friends and family started to ask if they could invest with us. So we are syndicating a deal and closing on 24 units next month. Not quite the smoking deal as the 8 unit above but a lot of similar qualities. The 24 unit will require much deeper rehab and repairs but the upside is strong if everything comes in under budget.

Also, we have another 8 unit under contract that we will be inspecting next week and then moving to close. 

So we are just building on our experience and looking to grow/scale through partnering with friends and family.

Investment Info:

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

Purchase price: $160,000
Cash invested: $30,000

Contributors:
Devin Haertling

8 Unit, all 1 bed, 1 bath, fully occupied.
Fully renovated 1 unit and consistently raising rents.

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

Good purchase price. Convenient management. Low risk/cap ex exposure. Cashflow.

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

Agent/Property Manager. Analyzed the investment with BP calculator and made offer that would allow the property to have solid cashflow at modest rents with plans to raise rents.

How did you finance this deal?

Conventional, 20 year mortgage.

How did you add value to the deal?

Cleaned the units and fully rehabbed the units. Also by being responsive to tenants needs and repair/maintenance issues.

What was the outcome?

So far good. Property is fully occupied and stabilized.

Lessons learned? Challenges?

We purchased it fully vacant so it took about 6 months to get it rolling, so patience. Also, the better tenants you get, the better other tenant you get.

@Devin Haertling

@Elijah Roberts Ah, very cool. SO are your units 4 SFR or a 4 unit complex of apartments? How long have you owned them? Do you manage them yourself? How do you feel like the rental marker has changed over the last year or two in the area? Any specific areas around Belleville (SWIC, Scott AFB, High Schools, downtown) that you think are experiencing more growth and appreciation in property values and rents?

Elijah Roberts purchase price for a 4-unit could vary widely depending on quality of units, size of units and current rental rates. For that area it would probably fall between 125k-180k depending on the above. As the landlord do you mean you are the owner or you manage the rentals? What management fee or percentage have you earned for management? Thanks!

@Devin Haertling

Hey BP,

I'm wondering if anyone has experience with property managers in the Belleville, IL area?  I'm looking for a manager for a 4-Unit complex.

I'm also wondering what the going rates are for PM in the area.

Thanks!

Zane

@Joshua D.@Ned Carey@Salvatore Lentini Thanks all for the feedback and pointing out some good options. The BRRRR option seems like a good route.

Zane

Hey all,

I'm always reading about investors buying properties at 70-80% of appraised value and being able to get the bank to loan the entire purchase price since there's 20-30% equity immediately upon closing.

From my experience, appraisers tend to lean towards or come close to the agreed upon purchase price, somewhat regardless to the real appraised value.

So I'd like to hear from anyone that has been able to do this and exactly how they went about it?

The above scenario sounds like the order is: appraisal, offer, accepted purchase price, inspection, close, but my experience is that the order is: offer, accepted purchase price, appraisal/insepection, close.

I look forward to hearing from anyone who has been able to execute this strategy!

Thanks, Zane

@Paul Sandhu Sounds like a great set up. Thanks for sharing.

I sell crude oil to that refinery...Somehow I feel like I'm in business with you ;)

Zane