I started investing in Real Estate in 2013 and built my portfolio to 50+ units in just a few years using my own money and using the strategy BiggerPockets calls the Brrrr Method. My portfolio at this point consisted of mainly duplexes, a 4-plex and 2 SFR. I started following Rod on Facebook and YouTube around the beginning to mid 2018. After really digging into Rod’s content and a lightbulb going off in my head, I decided that multifamily was the direction I wanted to go so I signed up to attend Rod’s Bootcamp in Tampa, Florida on January 18th, 19th and 20th. This event was a life changer for me and full of amazing information that changed my life. After attending his bootcamp, I signed up for the Warriors Program and again, I was blown away by the content and the network Rod has built. During my time as a Warrior, I stayed laser focused and met with brokers and constantly analyzed deals with no thought of giving up until I had my first multifamily property under contract. After a year of searching, analyzing and touring over 100+ deals, I finally had a 12 unit under contract in December 2019. I closed on this property on March 31, 2020 and currently just rehabbing the 7th unit and increasing rents by $250/month per unit. Things have been going better than I ever could have imagined. Especially during this pandemic mess.focus solely on large multi-family purchases. Since then they have closed on 2 complexes with 4 more under contract through partnering.
Address: 360 Oak Rd.
Number of Units: 12
Value Add Deal? Yes
Purchase Price: $375,000
Estimated monthly increase projected? $250/unit
Anticipated value after value add: $850,000
Estimated Cash on Cash Return: 20-26%
Estimated Internal Rate of Return: 41.42%
My experience with the Warrior program was awesome. I learned so much and connected with so many like minded people. You don’t realize how many people out there are passionate about real estate the way I am. And seeing so many people buying so many units, it helps me believe that it’s definitely possible for me to do the same. I am from Pittsburgh, PA and I’m around a lot of people who are just blue collared hard working people who don’t dream big the way I do. When I tell them I own 50+ units they are blown away. Yet in my mind, I haven’t even begun yet and my goals would scare them and they would think it’s impossible.
I found this property from sending direct mailers to owners. Took 3 times to hit the owner before I got a response. Owner turned down my initial offer and then a few months went by where we didn’t talk. After 2-3 months went by, I decided to reach back out to the owner to see if we could make a deal happen. After taking the owner to lunch and buttering him up, I got him to accept an offer. The owner was in no hurry to close and made it very easy for me to go through my first experience with closing on a commercial multifamily property.
I was able to use a small commercial lender and had to put 20% down to close. I was able to lock down very good lending on this property because it cash flowed so well. The loan terms were as followed: 80% LTV, 10 year term, 25 year amortization, 3.9% interest rate. This lender also refinanced my original portfolio, and I was able to cash-out enough to cover all my costs to close on the 12 unit, plus rehab costs, plus a healthy reserve. I didn’t have to bring a check to the closing table which was amazing.
Neither. Bought this deal on my own. I plan to go bigger on the next deal and do a Joint Venture.
No equity raised
No equity raised
Staying consistent with seller after 1st offer turned down. Broker was giving me bad news in the first 60 days of being under contract and lending was approved at the last minute. Very stressful being that this was my first deal like this.
During Due Dilligence, have contractor spend more time inspecting the property so he can give me a more accurate estimate on the renovation costs. I went over budget on a few units and now I’m having to do some of the work myself, which I’m ok with, to make up some of those costs to get me back on track.
* 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.