Avid learner who has developed multiple side income streams over the last 5 years. I currently own a 4-unit building which I manage myself, I just partnered in a 21 unit JV deal in Atlanta, and I am also a LP investor in a 100 unit deal in FL. Passionate about multifamily and growing other businesses so I can keep putting it into real estate. In the next 3 years I would like to leave my W-2 job and go full time in real estate. I am looking for more time freedom to spend with my growing family.
Address: 123 Faulkner Dr, Commerce, GA 30529
Number of Units: 21
Value Add Deal? Yes
Purchase Price: $1,330,330
Estimated monthly increase projected? $50-$75 as units turn over
Anticipated value after value add: $1,600,000
Estimated Cash on Cash Return: 10-12%
Estimated Internal Rate of Return: 16-17%
Fantastic group of like minded people, everyone willing to help.
One of the partners found it through a broker connection in the ATL market.
Local Bank debt – 10 year term (5 year rate lock @4%, 25 year AM, recourse.
Partners injected equity. Some more than others
The owner was withholding information from us regarding an easement payment that he was getting from the Georgia DOT. He entered into the agreement to receive $33,000 and that would allow the DOT to come in an fix the driveway and put in drainage. He was breaching the contract and we were supposed to get some of those funds. We were able to involve lawyers and got most of the settlement.
You need to be prepared to submit a lot of paperwork if you are an out of state partner investing in an out of state deal and using local debt. Also, keep up on the broker to get you as much info as possible. We had to press him a bit to find out about the DOT settlement. Last, we found a few issues with the property and the owner wasn’t that willing to give us any credits. We had to work hard to get about half the credit we were owed.
* 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.