Warrior Win
Matt Martin
My wife and I own an advertising agency and have limited experience in Real Estate Investing. We purchased a small multifamily asset before joining the group called Hat Creek Apartments consisting of 8 doors.
Property Details
Address: Ashton Meadows Apartments 11669 FM 3025, Stephenville, TX 76087
Number of Units: 7
Value Add Deal? Yes
Purchase Price: $600,000
Estimated monthly increase projected? $150-$200
Anticipated value after value add: $700,000-$750,000
Estimated Cash on Cash Return: 10%
Estimated Internal Rate of Return: 15%
Warrior team
shout outs:
Any comments about your experience so far in the Warrior Program?
This program has been so amazing. I have already recouped my investment and then some just in this first deal. More than that I have actually been working on my own personal developement and challenging myself thanks to the books Rod has sent. I have a better mindset and am just getting started! Best investment I’ve made! Kudos to you guys for what you are doing.
How did you find this property?
I was actually secret shopping assets in my area to see what rent rates were and noticed that these were significantly lower than any other asset in the area. I developed a relationship with the owners and told them I already owned an asset down the road and asked if they were interested in selling. At first they told me no, but we stayed in touch over a few months and out of the blue they changed their mind (He is losing his job) and we can to an agreement quickly.
How did you structure the financing of this property?
Local Regional Bank. 20 year term, 4% interest fixed for 5 years. 20% downpayment
Was this a joint venture or syndication?
JV. Myself and one investor
What was the equity raise?
$133,000
How did you raise the equity?
We had an investor in our network that recognized the education and mentorship we were doing through the warrior group and they approached us about “going in on a deal together”. Originally I assumed I would put up half the money and they would put up half and we would be 50-50 partners. It occurred to me that I was bringing this off-market deal to the table as well as doing all the work managing the asset so I structured a 50-50 equity split but they put up the downpayment money and closing costs.
What are some hurdles you had to overcome to get this deal done?
It was a learning experience for sure. The seller tried to back out of the deal after we went under contract because he felt he had undersold it. When I didn’t let him out, he didn’t play very nicely. To say the least, he wasn’t helpful in making this a smooth transition.
What are some of the lessons you learned with this deal?
I learned the power of off-market deals. I haven’t been able to find anything even close to a good deal so far and this off-market asset appraised for $25,000 over the contract price! I also learned a lot about things like partnership agreements, buy sell agreements and how to set your LLC up so that if someone were “hit by a bus” or couldn’t agree on a strategy, you aren’t stuck doing business with their spouse or family. You set all of that up on the front end just in case. We used an attorney and he brought up some points that I never would have considered!
* 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.