REAL ESTATE Investing in Townhomes

[Connor]

I would say that part of the advantage I have is that my brother is in real estate full-time running a property management company, so we get opportunities on a lot of off market deals. The 16 units did go to the market, but that was the first deal we had bought on market since our very first townhome.

We also were able to find a private money lender who allows us to close most smaller deals all cash, and then we can refinance with more traditional bank debt once we have done the renovations and increased rents. This last deal was done with traditional bank debt, but we were able to use some other assets that weren’t tied up to get an additional construction loan for the renovations. It didn’t hurt that my brother I just paid them back on a larger multifamily deal that he had done.

We are also in a smaller market that has a much lower price point, but a better rent to price point ratio, so these individual units aren’t $300,000 or anything.

 

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[BRichard]

Hello Forum- still plugging away here on acquiring properties. We picked up 16 townhomes earlier this year in one complex and are in process of renovating those.

Financing is obviously challenging with the higher interest rates, but we had some properties that have gone up significantly in value that we were able to utilize to cross collateralize for a loan that helped take down the acquisition and fund some of the renovations.

Now that we have over 50 units, we’re hopeful that will start to see more economies of scale, and we’re still targeting 100 units within the next few years. Real estate is definitely a get rich slow and steady race, but it’s nice to see the topline revenue that we’re starting to generate and having less variability on the bottom line.

Connor,
Great to see another RE investor in the Carolinas. I've got a few MHP's which have built up some equity the last 5 years and I am looking at disposing those to 1031 into some multifamily.
What have you found good sources of leads? Would love to connect and trade notes.

 

[Connor]

Duppus,
Hsiev vu tii epuvjis SI opwitvus op vji Desumopet. O'wi huv e gix NJQ't xjodj jewi caomv aq tuni iraovz vji metv 5 ziest epf O en muuloph ev fotqutoph vjuti vu 1031 opvu tuni namvogenomz.
Xjev jewi zua guapf huuf tuasdit ug mieft? Xuamf muwi vu duppidv epf vsefi puvit.

Fu epz ug vji csulist xju xomm ci motvoph zuas NJQt timm Namvogenomz vuu? O vjopl ov’t jesf vu hiv vji qsousovz evvipvoup gsun csulist xovjuav fuoph e fiem us vxu xovj vjin vu tvesv.

Eheop, nz csuvjis’t iyqisoipdi epf dunqepz howit ni e jahi efwepvehi, tu O’n puv vji citv efwodi howis op tuni sihesft…

 

[WJK]

Fu epz ug vji csulist xju xomm ci motvoph zuas NJQt timm Namvogenomz vuu? O vjopl ov’t jesf vu hiv vji qsousovz evvipvoup gsun csulist xovjuav fuoph e fiem us vxu xovj vjin vu tvesv.

Eheop, nz csuvjis’t iyqisoipdi epf dunqepz howit ni e jahi efwepvehi, tu O’n puv vji citv efwodi howis op tuni sihesft…

SI ot e muph heni, cav ov't vuvemmz xusvj vji voni epf iggusv og zua opwitv sohjv.

 

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