Case Study Time

All right, so we wanted to do some case studies for you. And this one is actually kind of special because it was our very first indication. And this was a 380, 384 doors. 384 doors down in Daytona Beach, Florida. And when they came to us to do this one, they had all the projections and what they wanted to do is project it for five years. And in five years this complex was going to get from where it is now to, you know, where we need it to be to sell it. But we did that in 15 months.

Yes.

And so instead of taking five years, it took 15 months. And we're going to talk about the numbers on this property when we bought it and how we did that or the numbers that it took in 15 months.

Sounds good. So we get really excited about case studies. So we're going to dial this one in. Just like Flip said, it's a 384 unit apartment complex in Daytona Beach, Florida. And Flip, can you tell us the date that we purchased this property? So July 29, 2021 is when we purchased it. And how much did we purchase it for? $41,250,000. So how did we get this deal? Let's start there. We were brand new to syndications and multi family. We had just gone through our horror story. 56 unit apartment complex nicknamed drugs, thugs and bugs. And one of our mastermind network investors said, hey Flippin Danny, you just did that apartment complex. You want to join me? We're getting ready to buy a 384 unit in Daytona Beach, Florida. And I said oh my gosh, yeah, tell me more. And the great thing about networks is that the trust is there, right? So when you have a network that you can trust, you're ready to jump in at any given time. So he tells us about it. This is a deal that Lloyd Jones had already purchased and he was using Wall street money. And then our friend said, hey Lloyd, we can recapitalize this using our investors so that we can create a win in an institutional building and allow us to have a case study that shows that we can do deals like this when partnered with people like you. And so that's what we did. So we raised the funds. I think we raised a little over $13 million in order to essentially buy out the Wall street investors and get a brand new loan for the purchase price of $41,250,000. Okay. So now we're doing all the renovations and most of the apartments. You're always going to see a common theme, you're going to see delinquencies, you're going to see poor tenant quality. You're always going to have an opportunity to increase the rents by getting better quality tenants after doing some renovations and adding some amenities that are going to be great for that particular area. So that's the same business plan that we have on this particular property. We underwrote it so that we could achieve projections in a five year timeline, just like Flip said. But instead we were going so quick and the timing of the market was so good, and that is absolutely part of the equation, that in 15 months we were able to sell the property on what date looks like October 12, 2022. That's that 15 month. And what did we sell it for? 56,500,000. So you can see the difference here. What we don't have here is the rehab numbers. But we purchased it July of 2021 for 41 million, sold it in October of 2022 for 56 million 500. And in that time, in 15 months, the increase of the dollar per door was by how much? It was by $40,000. So what you want to really pay attention to when you're looking at case studies is the team. Absolutely. But the knowledge that they have in the market and when they exit properties, so many times people will come into an investment and say, hey, when are you going to sell? We're going to say, I don't know, probably sell years. But based on the market and our ability to do a lot of the improvements and be at the height boom, we took advantage, made sure that it was a win for us, win for the property, win for our investors, and here we are today. And that is one of the best first syndications I could even imagine. So if you'd like to learn more, click the link below and join our investor club. We would welcome you to be a part of our next deal.