20 years owning and operating smaller MF buildings in Portland OR. Joined the Warrior group to learn how to scale and syndicate. Currently a sales Director with a high tech company.
Address: Village at Rankin in Greensboro NC
Number of Units: 130
Value Add Deal? Yes
Purchase Price: $7,800,000
Estimated monthly increase projected? $100-158/unit
Anticipated value after value add: $11.6 mil in 5 years
Estimated Cash on Cash Return: 8.11%
Estimated Internal Rate of Return: 14.8% on 5 year hold
You get out of it what you put into it. I have shifted from trying to touch a volume of people to investing in deeper quality relationships with a few people.
Working with my Ed Modzel, he had an existing relationship with a local operator in Raleigh. He found the property and brought it to Ed.
CMBS Loan – LTV 70%. We had 6 mos of Covid reserves that dropped in the middle of the raise. Interest only 36 months. 10 year term 3.9%.
Last minute banking requirements that delayed closing by almost 30 days. Changing property managers in the middle of the raise.
While the property manager we chose has performed very well in other markets, they struggled in this market. Some additional inspection on their local infrastructure would have been good.
* These examples depicting income or earnings are NOT to be interpreted as common, typical, expected, or normal for an average student. Although we have numerous documented successful deals from our coaching students, we cannot track all of our students’ results, and therefore cannot provide a typical result. You should assume that the average person makes little to no money or could lose money as there is work and risk associated with investing in real estate. The students depicted have participated in Rod’s training and coaching. The participants shown are not paid for their stories.