Warrior Win

Karl Schlobohm

I am a teacher by trade and a single parent. I Joined the Warrior Group in 2021 to explore ways to create a financial legacy for my daughter and for the charitable organizations that are dear to me, and to work towards my own financial freedom separate from my W-2. My passions are traveling, playing and building guitars, cycling, coffee roasting and adventuring in general. Over the course of the past couple of years, I have underwritten and pursued acquisitions across many classes of commercial real estate, including apartments, RV/MHPs, RV and Boat Storage and Self-Storage. I’ve settled on pursuing RV/Boat Storage, Self Storage and RV Parks, as these kinds of assets cater more towards my goals. I have closed on on a storage expansion project close to Gainesville, FL with fellow Warrior Scott Gimbert and on a 27-unit apartment complex in Kingsland, GA in partnership with fellow Warrior Charlie Peters.  As my #1 goals are to retire from my W-2, build out a bus and travel the country to various properties.

Property Details

Address: Orange and Blue Storage, Hampton, FL
Number of Units: 24
Value Add Deal? Yes
Purchase Price: $425,000
Estimated monthly increase projected? $Storage – $50-90/unit
Anticipated value after value add: Storage Facility – $3,279,619 at conservative 8% CAP rate
Estimated Cash on Cash Return: CoC: 123% at stabilization (start of Y3 – 90% occupancy as per feasibility study) – conservatively assumes no NOI for 4 months of operation Y1.
Estimated Internal Rate of Return:  484% estimated (start of Y3 @ 90% occupancy) – Assumes no NOI Y1. Formula Used: $3,279,619 (conservative ARV) + $262, 269 (Y2 NOI), minus $2,315,000 (debt principal), minus $210,000 capital contribution, ($1,016,888) divided by capital contribution of $210,000)

Warrior team
shout outs:

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

I have been overwhelmed by the amount of support I’ve received from fellow Warriors along the way. I’m not sure how long it would have taken me to accomplish what I have in two years if it were not for the support of fellow Warriors.

How did you find this property?

My partner Scott and I found the storage development site doing business searches and underwriting properties that fit our narrow criteria – we built a relationship with the seller to ensure that this project was the right fit for everyone.

How did you structure the financing of this property?

We arranged for seller financing to purchase the property. Our construction loan will then pay the remaining principal and take over first position on the property. Our down-payment on the seller financing will serve as our capital injection on the construction loan.

Was this a joint venture or syndication?

Both JVs

How did you raise the equity?

Promissory notes offering 8% interest-only over 2 years, plus a 10% flat return after Y2. Investor option to continue hold after 2 years with monthly distributions of 8% interest-only, until refi.

What was the equity raise?

Storage – $150,000 – $50k/investor. Plus $61,000 contribution from JV partners. ($210,000 to cover loan down-payment of 10% of construction costs).

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

I have had countless properties fall out of contract before closing. Sometimes due to lending, sometimes due to hidden concerns about the properties/sellers, sometimes due to wetlands issues or zoning restrictions. I’ve also struggled to make many of the Warrior events and other networking opportunities due to my role as a single parent, as well as restrictions from my W-2. Teaching takes a lot out, and it takes a lot more to continue pursuing dreams after dark.

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

I’ve learned to keep to my routines every day with a positive/growth mindset, and that the right opportunities will come along at the right times as long as you stick with your plan. Focus on goals and the “Why” allows dreams to unfold.

* 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.