Warrior Win


Ray Hightower is a tech company founder and commercial real estate investor operating in the State of Arizona, USA. Growing a technology company for twenty-one years and ultimately selling it gave Hightower a boots-on-the-ground education in business execution and vanquishing obstacles.
Ray joined the Warrior program in July 2020. He moved from California to Arizona three months later, and four months after that he became an LP in his first syndication: 93u in Tucson, AZ. His Second LP, 302u in Phoenix, closed in Sep 2021. Ray closed his first GP deal in November 2021 with partners he met through the Warrior program.

Property Details

Address: 1412 N 35th Street, Phoenix, AZ 85008
Number of Units: 28
Value Add Deal? Yes
Purchase Price: $4,788,000
Estimated monthly increase projected? $400-$600/door
Anticipated value after value add: $6,380,000
Estimated Cash on Cash Return: 5% (initially) with 2.0x equity multiple upon exit.
Estimated Internal Rate of Return: 16%

Warrior team
shout outs:

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

Since I joined the Warrior program, every deal I’ve done (or attempted) has included Warriors or people I’ve met through other Warriors. The network and mindset training is awesome.

How did you find this property?

Broker relationship.

How did you structure the financing of this property?

75% debt from a local bank
75% capex from the same local bank
Remainder (equity) raised via syndication.

Was this a joint venture or syndication?


What was the equity raise?

$2 mil

How did you raise the equity?

Each member of the GP team leveraged existing relationships and built new relationships since we made this a 506(c) offering.

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

* Raising capital.
* Replacing our initial management company (while we were still in due diligence).
* Finding contractors who we trust.
* Getting rent comps that make sense in the crazy Phoenix market. Y-o-Y rent growth between Sep2020 and Sep2021 = 22%, per YARDI. The bank pushed back against this, initially. And then we shared our data plus the opinions of two local PM companies.

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

* It’s never too early to raise money for a deal.
* FOMO during fundraising is real. I have multiple investors who moved too slow on this deal, and now they’re chomping at the bit for the next one.

* 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.