Jan 15, 2019
Today, my special guests are
Cory Boatright and Sean Terry, who were two of my partners from the
very beginning on the University Crossings deal.
This is the last part for the
series regarding University Crossings. We share what went wrong,
what went right, and how we overcame obstacles that are often part
of multifamily transactions.
Topics on Today’s
Episode:
- Ups
and downs of deal included asking for money from investors,
stressful deadlines stressful, and people making
excuses
- Learning curve on due diligence, occupancy, and
other factors that affect loans
- Multifamily Investing Model: Deal must cash
flow from point of acquisition
- Protect investor capital at all costs because
of possible risk and intolerance involved in some deals
- Utilize Cash Flow Calculator to help analyze
deals
- Property can look good on paper, but a site
visit may change your outlook
- Fact-Finding Mission: Ask the right questions
to determine a property’s potential
- Deals
are not driven by price, but potential NOI and cash
flow
- Offer
Process: Get lead, do due diligence, visit property, and submit
Letter of Intent (LOI); costs more, but makes you more apt to make
the deal happen
- Closing delayed for various reasons - occupancy
rate, seller coma, financing, etc.
- Create and present a marketing package that
excites investors about property
- Investor’s Top Concerns: Is my money safe? How
and when am I going to get my money back?
- Choose partners that you can trust and learn
from; find commonality to find deals
Links and Resources
Mentioned:
Quotes:
“We took it (University
Crossings) on together, and we kicked it in its butt. But, it
wasn’t without its ups and downs.” Corey Peterson
“Your (Corey) model is it has to
cash flow right from the point of acquisition.” Sean
Terry
“Protect investor capital at all
costs.” Cory Boatright
“The only way you’re going to
increase occupancy is lower rents. If that’s the model, that’s not
a good model.” Sean Terry
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Series, and if you like
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