Attorney and Wealth Manager, with 20 years of single and small multi family investment experience.
Address: 2900 South Freeway, Fort Worth, TX 76104.
Number of Units: 123
Value Add Deal? light value add (capex of $400K)
Purchase Price: $11,250,000
Estimated monthly increase projected? $130/unit
Anticipated value after value add: $15,000,000
Estimated Cash on Cash Return: 7.5%%
Estimated Internal Rate of Return: 17.8%
I wish the focus for me would have been on creating a good team and working on capital raising and asset management rather than on deal analysis and underwriting when I started. I raised 1.2 mil for this deal, but would have raised more if I was more comfortable with the asset manager. I am learning quite a bit about the financing part (as the KP) and the asset management part. I’ve taken a very active role in asset management to get my comfort level higher to a point where I can do more of the asset management.
The deal was brought to me by another Warrior, Francesco Orselli.
Fannie Mae 7 year fixed at 6.23% with 3 year IO and 3 year Yield Maintenance, then 1% termination fee.
Syndication (506b and 506c).
Friends, business contacts.
I don’t get along with one of the partners (non-warrior) who brought the deal to us. It’s been a challenge to work with this person who is the lead asset manager. However, as one of 3 KPs, we have an ability to vote the person out with regards to decisions.
Pick your team carefully, and discuss equity split from the start. The person who brought the deal wanted to retain a significant portion, and did little to raise capital.
* 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.