Warrior Win

Daniel Velez

CPA – 11 years in public accounting and private. Been focused on the start up/tech space over the past 6 years, helping implement processes/controls/and reporting for companies looking to scale (Series A to C). I’ve owned a single family rental for 7 years, have completed a flip, and run a RE meet up for the past 6 years.

Property Details

Address: 1400 Oakland Ave, Indiana, PA
Number of Units: 84
Value Add Deal? Yes
Purchase Price: $1,450,000
Estimated monthly increase projected? $100/unit once out of LIHTC
Anticipated value after value add: $3.5m
Estimated Cash on Cash Return: 10%
Estimated Internal Rate of Return: 33%

Warrior team
shout outs:

Any comments about your experience so far in the Warrior Program?

Great group of folks. I was feeling overwhelmed/disappointed that I didn’t close a deal within my first 90, 180, 365 days. But in working with this team, I believe that it will be the relationships that I’ve built that will enable me to scale for the long term successfully vs. just acquiring doors quickly. My goal is to lead asset mgmt/ops so deal sourcing and working with more experienced operators and capital raisers will be my continued focus.

How did you find this property?


How did you structure the financing of this property?

80% loan to cost with 2 years IO. 5 year balloon and 25 yr amort.

Was this a joint venture or syndication?

Joint Venture.

How did you raise the equity?

All members of the JV contributed.

What was the equity raise?


What are some hurdles you had to overcome to get this deal done?

Inspection – identified aluminum wiring during the inspection and that electric hasn’t been updated from original construction (1971)
Insurance – denied by 20+ carriers due to aluminum wiring and/or the percentage of S8 tenants. We also had a cancellation notice issued because of the delays in closing from original bind date
Legal – Took 60 days to get a signed PSA from the sellers Legal (they faxed comments over to our attorneys)
Occupancy Permits – The property falls within 2 townships. 48 of the units didn’t have a final permit/occupancy permit issued upon completion. Had to get a letter from the current local authority that the property was operating in good standing
Title – closing was pushed back 3 times due to disorganization of title and last min requests from local banks
Local bank – unresponsive on required deliverables and their legal team was MIA on day of close to approve final transfer of funds from escrow to sellers pay off account.

What are some of the lessons you learned with this deal?

Set up a close calendar that we maintain as the operators to hold all external 3rd parties accountable for their required docs and timelines. So many hiccups and disorganization from title and the local bank, the same files were delivered multiple times to the parties. Basically need to micromanage more. I incorrectly anticipated that some of these companies would operate more smoothly vs. a residential transaction (comparing to my residential agent business), and that just wasn’t the case.

* 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.