70% occupied property plus many more

Posted on 28. Apr, 2010 by in Finding Apartment Buildings, Makin' Offers, Multi-Units/Apartment Buildings, Networking, Private Lenders



Been looking at several properties this week. We’re definitely trying to make things happen. Kathy and I even had a talk about the types of deals and investors for those deals that we want to target.

So far this week we looked at 2-30 unit properties, 1-36 unit property and I looked at a a duplex, triplex and 4 unit the other day and a 4 unit (possibly 5) property today. I just scheduled a Saturday appointment for a duplex. Normally, we might not be interested in the duplex but I spoke to the lady on the phone before and she just faxed in the fax back form. On the form she gave a price and then said “or best offer” (I love hearing that) and wrote real big: Need to Sell!

After talking to her again and asking why she needs to really sell it’s actually kinda sad. This is the part of investing that I think sometimes may be a bit more difficult for chicks rather than guys. Ya know we get those emotion things involved. I mean I’m not saying that affects my buying decision but I’m definitely super sympathetic and empathetic. Anyway, she lived in a house that had mold issues for sooo long, TOXIC MOLD issues and 1 of her cats and 1 of her dogs ended up dying because of it and now she’s super sick because of it. So she has to move (and no, she doesn’t live in that house anymore and no, that’s not the house she’s trying to sell!)

The properties I seen today were very nice. The nice rental units I have EVER seen….EVER. There are 4 units now (single family house, a duplex, plus 1/2 a duplex.) Plus, the husband wants to make the other 1/2 duplex into an apartment. So it’ll be 5 units total and they want $750k for 4 or $790k if the 5th apartment is done first. Uhhh no. We offered 900k on a 30 unit! (and eventually, I think they’ll go for it, because that’s what it’s worth…) But the sellers I absolutely adored….older couple who just want to retire (home improvement/roofing biz) but they are a lil unreasonable right now.

I’m pretty sure we’ll draw up an LOI for the 36 unit we saw the other day and I’m seriously trying to figure out how on earth we could purchase a 120 unit property that is 70% occupied. I think it’s got HUGE upside……but I’m still trying to get my head around figuring things out that aren’t the “norm” yet.

Things are chugging along….I told Kathy that I don’t think properties are the problem and that we need to concentrate on finding private money more. We decided that for the smaller deals we’re going to seek out debt investors to just lend the entire loan amount and for the bigger deals we’ll use equity investors and just take a percentage of the deal. Equity investors just doesn’t make sense for these smaller deals…..financially speaking for us, anyway.

I finished a free report on Investing in Emerging Markets last night and today or tomorrow I’ll finish our Investor Brochure for folks that are potentially interested in investing in commercial real estate deals.




OHHHHH I almost forgot, I went to poker last Thursday (finished in 4th and more than doubled my money) but more importantly I know one guy in particular has some dough (and some real estate) so I started chatting it up with him and asked him about his properties (he’s trying to get rid of them all, they are shells in not the best parts of philly) and he said he never wanted to be a landlord. So I took that as my key to talk to him about becoming an equity partner with us. He asked in what areas we were looking and how many units are we talking. I answered him and he said “I’ll give you my email address before I leave tonite. Send me some more information. I mean not specifics or anything, but general information. I have some interest.” :-)

That’s why I put my ass in high gear to get this investor brochure together. The next step is to set up a meeting with him and his wife (I guess he’d want her involved…I dunno??)

So far, my monthly poker tournaments have found me 1 private lender and potentially 1 more. There’s another guy that comes sometimes that I’ll definitely hit up….but haven’t seen him in a bit. I know he’s got bucks too!

Ok off to finish my brochure now. Oh and if you are reading this and you’ve done any deals with 100+ units that had 70% occupancy or around there, please email me. I’d love to talk to ya!

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7 Responses to “70% occupied property plus many more”

  1. Scott Costello

    29. Apr, 2010

    You are really moving to the next level with the multi-unit rental properties. You seem to have all the pieces in place to jump at a deal when you find it.

    What kind of percentage in the apartment complex are you thinking of offering your money investors?

  2. Shae

    29. Apr, 2010

    Sweet! You’ve got momentum, girl! Keep going!

  3. stephen j. moore

    29. Apr, 2010

    Nice going and you seem to be closing in on a deal or a few deals….keep rocking

  4. Flippin' Carey

    29. Apr, 2010

    Almost all of the pieces Scott. Still need some more private money folks. But I’m working it…trying anyway.

    Generally, we’ll offer equity investors anywhere from 50% to 75% of the cashflow and the equity. Of course, it’s all based on the deal and what’s feasible and what’s not.

    Debt investors we’re going to offer pretty decent percentages….much better than you can get in cds, money markets, savings accounts, etc. Again though, each specific deal will dictate what will or won’t work.

  5. Flippin' Carey

    29. Apr, 2010

    I’m gonna try! Definitely trying. :-)

  6. Flippin' Carey

    29. Apr, 2010

    Thanks Stephen! I hope you’re right about closing in on a few deals….it’s getting exciting but I will admit I can get a lil bit discombobulated with so many different folks emailing me and calling me.

    I suppose that’s a good problem to have…better than the phone not ringing at all, eh?

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  1. Buying A 120-Unit Property That’s 70% Occupied – Deal Or No Deal? | Real Estate Investing News Watch Blog Aggregator - April 28, 2010

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