Warrior Wins – Steeve Breton

Warrior Win

Steeve Breton

25 years in corporate IT management in finance and biotech industry. Purchased 16 units in my back yard (Boston), mostly duplexes, from 2011-2012. Then turned to passive syndication investments from 2013-2017 Signed up as a Warrior June-2017 First deal, 130 units, under contract by Jan 2018 Left my W2 in June 2019 … 2 years after deciding to “Turn Pro” and 1 year ahead of my target date. Today I have over 1,200 units as a GP/Sponsor

Property Details

Address: The Terrace, San Antonio, TX
Number of Units: 130
Value Add Deal? Yes
Purchase Price: $5,250,000
Estimated monthly increase projected? Avg of $90/unit
Anticipated value after value add: $9 mil
Estimated Cash on Cash Return: 10.9%
Estimated Internal Rate of Return: 17%

Warrior team
shout outs:

Which Warriors helped you with this deal, and how?

This was early in the Warrior days. I had encouraging discussions with Powell Chee and Jens Nielsen but at the time we were all in the same Newbee boat

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

I had already done a fair amount in real estate, including trying to syndicate a deal, before signing up. Prior to June 2017 I had plateaued. I signed up for the knowledge, encouragement and the network. I received an abundance of each and that has made the program priceless for me.

How did you find this property?

I’d had several conversations with a potential partner in the market. They had good local broker contacts. When they were presented with this property we jumped on it.

How did you structure the financing of this property?

Freddie 10 years with 2 years I/O

Was this a joint venture or syndication?

Syndication

How did you raise the equity?

Private investors

What was the equity raise?

$2.3 mil

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

Finding a trustworthy partner with enough experience that I could feel comfortable leaning on. Then dealing with my limiting beliefs about raising capital.

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

Turning over a C- tenant class is a ton of work

We’re very happy that we planned for high vacancies in year one. The property is currently under contract to sell in April 2020 … This is the 3rd buyer… We could have done better due diligence the first buyer. I also timed the sale with another deal I was raising for but when the first buyer fell through I was in trouble on my current raise which caused a couple of weeks of sleepless nights.

* 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.