Warrior Wins – Jefferson Gan

Warrior Win

Jefferson Gan

Been in IT for 21 years. Real estate for 5 years. Have done some flipping on residential side. Love to automate stuff and systematize the process so it will be an easy rinse and repeat.

Property Details

Address: 2301 and 2401 Vanstory St Greensboro, NC. The Apartments on Vanstory.
Number of Units: 42
Value Add Deal? Yes
Purchase Price: $3,150,000
Estimated monthly increase projected? $250+
Anticipated value after value add: $4,831,293
Estimated Cash on Cash Return: 7-8%
Estimated Internal Rate of Return: 16-17%

Warrior team
shout outs:

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

I love it! And you can learn from each other and if you have any questions, there is someone that you can rely on to answer within the program.

How did you find this property?

Broker.

How did you structure the financing of this property?

3 years Bridge Loan at 4.5% with Rate cap of 2.5 on Y1, 3 on Year 2 and Year 3. It is a 3+1+1.

Was this a joint venture or syndication?

Syndication

How did you raise the equity?

506B syndication.

What was the equity raise?

$1,303,027

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

– Rate Cap, didn’t anticipate the rise in cost. Good thing the lender made an effort to reduce some of their closing costs to compensate with high price of rate cap.

– Capital raise on my end.

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

– Due to the possibility of rate increase, need to underwrite at a higher interest rate and for bridge loans take into account that Rate Cap cost.

– Always keep your passive investors warm, and make sure they are still ready to go

– Push for breakdown of lender fees, we tried to get it but they keep on dodging it and not disclosing all the fees upfront. Until the settlement disclosure is released that’s when we saw all the costs.

* 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.