Live walkthrough of our new 44 unit apartment building

All right, hello and welcome to the 44-unit complex. So For those joining us here, sorry I didn't go live yesterday. I was busy closing this thing out. We are on site. Welcome to the office. If you're wondering what Section 8 real estate looks like or what, you know, people are like, oh yeah, we buy these crappy houses in the middle of nowhere. Yeah, I don't like that model. So that's not what we do. I'll show you guys a little bit around the main office, but I'm in the central building. This is the management and leasing office of the actual 44-unit building. But as you can see, You actually have like a super nice space and a super big space. So strolling about the office, you got rooms, workout center, event center, full kitchen, you know, the whole nine yards. We bought this thing for $1,850,000. $1,850,000, 44 units, Stephenville, Texas, great area, growing population. Bought this bank-financed 80% loan to value, which is really good. I'm really happy with that. Still working on the Christmas decorations. I suppose that's gonna be us who has to take those down because it looks like the prior employees were not informed that their last day was today. So that was a fun surprise. Got this fun office here. I'm gonna go right over the top of my baby. You guys can see the top of his head there and my beautiful wife. Not putting his face online until he's a little bit older. But yeah, there we go. I got like— oh, I pissed off my kid now. Oh, there we go. How do you know it's live? So yeah, live from the field, 44-unit. Gotta meet a bunch of the tenants already, super nice people. Uh, but yeah, we're getting a hang of the whole place. I'll, uh, I'll take you guys outside and we'll do a little tour out here. Uh, found this deal, by the way. We found this, uh, it was about to be listed So it was off market but through a broker. Fantastic, fantastic broker, by the way. His name's Garrett, based out of Oklahoma. Looking like I'm gonna go under contract for another deal with him later this evening. A lot bigger than this campus, same quality. So you guys wanna know how to do these? I spend about 15 minutes a day doing this. You guys can check out the, there's a link in basically all of my videos. I don't know if it's in this one 'cause I'm just going live, but if you guys go to like any of my videos, you guys can check out Multifamily strategy, we have a whole group where we do this stuff. I also have a bunch of free videos and free mini courses on how to find these, so check those out. But yeah, this is what the campus looks like. 44 units just like this. Excellent condition. Look at the bricks, look at the paint, look at the sidings. Look at the gutter and roof. These are all the things where I'm going through going like, yeah, this is quite nice. You hop to the back, show you guys what some of the, I'm gonna go full 360 here. Backed up to a field out here. When you're looking for like quality buildings, nice up-to-date serviced ACs all the way down, windows in great condition, no failing windows, separately metered, clean. I mean, fire extinguishers weren't up to date, so we got to get those done, but other than that, you know, winterized. Landscape is done, lawn's mowed. This is the type of stuff I like to see though. You get in here and it's like you're walking your property, you know, man, proud to own this. Also, this isn't even close to my most expensive acquisition. I bought a 25-unit, same town, similar condition, bought it for $2 million, and that was a good deal. This is less than $2 million, 44 units. That clubhouse back there, that is full run property management out of that. I'm now central hub. Came with computers, workout equipment, the whole nine yards. But if you guys are putting this together, like, this is— I started with less than $10,000 in my bank account. Anyone can copy that. Like, literally anyone could do this. Um, cost me no money out of pocket. Bank financed 80% of it. I had a few friends come on board, and these are people I didn't know when I started my journey. So this isn't like, oh yeah, I have rich friends and family. I don't. It would have been— I'm sure that would have been nice, but, you know, just not something that I had the ability to experience. Someone just posted in the comments, must be nice. It is. It is nice. I think the really fun part is 4 years ago, couldn't do that. Like legitimately, 4 years ago, didn't know how to do this. Didn't know that this was an option. But yeah, you want to own multifamily like this, you want to manage great properties, lease to great people, you're probably going to have to rent in great areas, which means you have to do some cool acquisitions. Here's what I found. If you have a great deal, like you start with a deal instead of the money, the bank will find most of the money. In many cases, the seller will find a lot of money. The seller of this building, apparently, apparently, legend has it, may be open to seller financing the next one, which is much larger than this. You get creative with the financing, but if you have a great deal, a bank will also lend to you, which opens up the options. So you find the deal first, then you find the debt. On this one. It's like, okay, well, I'll take care of, you know, we're buying for $1,850,000. Where's the rest of the money come from? 20%. 3 people came in, all, you know, higher income earners came in, got together and said, hey, let's fund the deal. How do they make money? The first money in, first money out. Before I get paid, they get paid. So I get to own the building with them. They get on top of the building, the other 50%. I don't get paid until their money's back. There'll be a future refi, it'll be out of cash flow. Cash flow is very strong. But over time, take a few years, no one will have any money left in the deal. Free real estate is free real estate. I do like free real estate. I think it's a good model and a, uh, a simple way to exist. We're going to run this to the best of our ability. We're going to keep a lot of the events that happen here, keep growing the community, move the rent collections online. But other than that, we're trying to touch as little as possible. You have a lot of very happy tenants who love being here, who have been here a long time. They have their bingo nights here. They have a little workout facility. In-unit laundry and a laundry room. Like, we have a backup in case your laundry ever breaks. But like, this is a like perfectly done community. This is done really, really nicely. No deferred maintenance of any kind, minus a little bit of trim on a couple of the windows. But I mean, like, this place is near perfect. I want to own stuff like this everywhere. And the good news is, uh, I still don't have a lot of money in my bank account because, you know, buy a lot of real estate. When I have it, turn into— turn my, my cash into buildings. But I couldn't have afforded to buy this. I did not have the capital. Find the opportunity first leads to opportunities like this. Oh, by the way, this is live, so if anyone has any questions, you're more than welcome to— more than welcome to ask them. But I just wanted to take the time to actually document, like, this is— this is a big day for me. 44 units out of the portfolio, favorite city in all of the US, supposed to be 95 units in this town. This will take my property management well above 100 units under management, which is great. And we are on to the next. What a great way to start the year. My goal, I'm gonna set it right now, this is the first million-dollar acquisition. Probably gonna pick up about $20 to $30 million of acquisition. My bank account is near empty right now, so we're gonna have to, uh, the money will not be coming from Christian Osgood. So we're gonna figure out the, uh, the process. And by the way, I was thinking about trying to wrap this up because I'm making a lot of, a lot of comments, but then All Nighter Heiner has joined, so we haven't even started yet until All Nighter's here. All Nighter's arrived. All Nighter, look at this, I bought a thing. Look how pretty that is. I'm pretty happy with this. Let me hop back into the office here. I know I shared this at the beginning of this stream, but I'm serious. The guys— I see too much of this— your online gurus who are telling you like, hey, buy cheap properties. There's a reason they do this. They tell you to buy inexpensive properties because they know they can sell you more of their course. They know it's easy for people to wrap their head around, you know, $25,000 property in the middle of nowhere. I could afford that. There's a way to run them profitably. But even if your return on investment is high, making a large return on a tiny amount of money, I mean, you have to do that again and again and again. What you lose is time. And for most of us, We're doing this whole real estate thing to get some time back, to get some passivity, sure, to move forward financially. But the main goal is to continue to press forward in owning your time, having freedom. If you're doing it one house at a time, one rental at a time, even a duplex or two at a time, There we go. Sorry about that. Someone tried to— someone tried to call me. They know not to call me. There we go. Sorry about that. I am back. But if you're trying to buy one rental at a time, like I was saying, if you try to buy one rental at a time, it's just slow. And if you lose time to build financial freedom, you know, maybe you'll move ahead of where you were, but you're not going to move forward very quickly. Buying stuff like this, I get to be picky about what I buy because I only buy 2 or 3 deals a year. Like we're doing this, I have a 77 or I think 76 unit and a 72 unit in the pipeline. If I just closed that, like it's gonna move me about 100, 200 units. Yeah. 200 units ahead, 3 transactions. That's not going to take me nearly as much time. Sure, is onboarding a big process here? Absolutely. Is there a lot to figure out? Not nearly as much as figuring out 44 houses. Put them all in one place. Get as many buildings as you can under one roof, one bank account. This is the simplest way that I know to buy real estate, and I think it's the easiest way to do it. And I know for a fact anyone can do it. So this is a celebration video. It's also an encouragement video. Getting tactical, we bought this with bank debt, 7.12% interest. If rates keep coming down, awesome. We'll do what's called a rate and term. So we'll— same bank, we'll just kind of— you pay a point or so. It's not an official refinance. We won't pull cash out. We'll just lower our interest at some point. This is a light tech deal. Uh, the light tech actually expires. So this is a longer play. We hold this thing. There's rent restrictions, which means we can't actually raise the rent beyond a certain threshold. Cash flow is where it's at. That's why we got the great price that we did. But at the end of all things, we're going to be buying this. We'll wait a little while, rent restrictions will drop. We bought it for like $1,850,000. This thing's gonna be worth $5 to $7 million when it expires. You just sit and wait a second. We're loading up on these right now, and we're able to do that because we started with cash flow. If we had no cash flow, because again, the structure is pay the investors out of the cash flow and the future refinances until they're made whole, and then we all split the cash flow. This is just planting seeds for the future. Is this going to pay me today? No. Is it going to cost me money today? Also no. We're going to hold this. We're going to hold it. We're going to hold it. And then suddenly it'll be cash flowing thousands and thousands of dollars and have millions of dollars of equity. This is one where you're putting a little time bomb in the deck. For those who've played Exploding Kittens, you know what I'm talking about. You got an exploding kitten in the deck, except this explosion is cash flow and liquidity. And we're just kind of putting it in there like, hey, you know, in the future, we're going to draw a lot of money out of this. For today, we're going to go ahead and add an awesome building that we're really proud to add to our portfolio. Well, there's this one rental at a time is a good place to start though. While that's not untrue, and I have friends who have one rental at a time, they've become very wealthy. It takes a long time. You can start one rental at a time, or you can start 44 rentals at a time. My argument is just simply, it's not that much harder to close 44 rentals at a time than it is to close one. Just do 44. That's my— I'm not knocking it, and you will move forward buying small properties. You will move forward. I got to a point early in my career, saved up, bought 2 duplexes, cash flowed $1,000 each. My mortgage was $2,000. My real estate bought my real estate. That's not a bad place to start at all. Being like, hey, my tenants pay my mortgage and I own 3 properties. That's a great place to be. However, had I known what I know today and I started with this, be way ahead. Question here: Did you have a full-time job when you got started? No, I don't. I don't recommend leaving your full-time job until you're financially free, by the way. I had made the decision to do that. My wife was still teaching though, so we had some income. And then almost immediately she gets injured at work. She broke her lower back and displaced her hips, got shoved down on a playground. School tried to cover it up. So then we got her out of her job and income disappeared. I made it work. It is possible. I don't recommend that to people though. That is a like super intense, high-risk way of saying like, hey, if this business plan doesn't work, I'm screwed, but I'm going to go for it. Just because it worked doesn't mean it's going to work every time. So while it is what I did, I don't recommend it. However, when I bought my first couple duplexes, I was working full-time, and today like I'm doing the property management. Like I'm here with my whole team, we're onboarding the units, we're doing the tests. I run a property management company full-time. Multifamily Strategy, if you see the amount of— I have like 2,000 videos on this YouTube channel, uh, God knows how many on Instagram. And I coach 3 times a week live, sometimes 4, multiple hours. I do one-on-ones with my students. I'm releasing new content. I'm upgrading Multifamily Strategy, the course. I'm refilming a lot of it. I want to come up with Multifamily Strategy 2.0. If you guys haven't noticed, I have multiple full-time jobs. This is part-time. I don't want to downplay like the difficulty level. This takes some tactical knowledge. This took some time to get the skill set to do this. But the actual time it's spent— it takes to buy real estate, if you're doing 2 or 3 deals a year, I mean, you're talking like 10, 15 minutes a day with a couple days like today where it's just all day. That you can absolutely do this with a full-time job. In fact, Multifamily Strategy, we've had 1,000 students come through I've probably had like 15 people who don't have full-time jobs ever go through the program. Like, it's just— we all work. Real estate just isn't full-time. It's kind of an on-again, off-again, you know. You have little surges of a lot of activity, and then it's like, okay, we're back to, uh, people paying rent in a building on annual leases, paying a monthly. There's not that much going on, not that much to do. I think that's the message of this deal, actually, right here. All Nighter said it: embrace delayed gratification. I waited a little bit. I lived in a, like, 1,000— lived in a 1,250-square-foot house for years and years and years and years. And this was even while I was working at the CoStar Group, making like $250,000 a year in salary, like commissions plus salary, but making about a quarter million dollars, which is good. People make a lot more, but I mean, it's good. Happy, stable, bought a few rental properties, didn't upgrade the lifestyle. My wife and I shared a car until very recently. Got an awesome truck, but that's because I have a kid. So now I don't want to leave the house in the car and have my wife just stranded at home, needed an Uber with a kid. So we did that out of necessity. But if you can just wait a little bit, even when my properties were free to me, like my tenants were paying for my house and I had a lot of income coming in. I banked it, I saved it, I invested it. Now here we are just a few years later. I'm 33 years old. I won't put the specific number here on YouTube, but worth, you know, quite a few millions of dollars with a lot of rental properties, with companies that are doing really well. Wait a little bit, invest a lot of the time, embrace the fact that you're going to work harder in these next few years than you will in any other year, and you get to a pretty cool place really quick. Emmanuel has a question. For property that size, how long does it take to get everyone onboarded with the new property management and payments? Well, this particular one, this is called Bunker Hill Senior Village. Senior Village, great people, super kind people here too. I actually met a lot of the tenants over the acquisition process, then a bunch of them today. They're not known for being tech savvy. In fact, the conversation I had with someone today, she's like, well, at 81, computers are a little bit difficult because I'm not computing at the level I used to. And while it's funny, it is true. Um, for this particular property, it's a little harder onboarding. 44 units. Uh, rent roll was last updated in August, so there's a few edits that need to be made. So, uh, in this property it's harder than usual. However, going door to door, we found a few key tenants who know everyone who are helping us make sure we're not missing anything as we go along. We met with the prior manager today, and, uh, that was less helpful than, than we hoped, but I think it was a few pointers and a few things to look out for. We got the keys, we're going through the rents right now. We're going to be hosting an onboarding day here next week to get everyone set up in their portal. So some people are already paying online, some people have already made the transition. First 2 months we're going to accept checks on site. After that, they have to mail them to the corporate box. Then what we're going to start doing is trying to get them all to pay online. Now, if you're trying to get a senior community to pay online, that's kind of interesting. One, Starbucks gift cards still go a long way. Two, like any, any event, pizza will attract more people. Book event. Uh, it'll be basically all day. We'll have pizza brought in, uh, as people get signed up. If you opt to pay online, you're incentivized with a $10 gift card. But we're gonna be there physically on site for everyone to come in, and we'll help work that— work with them, walk them through the portal. So on the tenant side, that's most of it. It also just starts on a good rhythm here. You want to get some momentum going right when you take over a property. Doing like a monthly newsletter for property this size is really, really helpful. Let them know what's happening, connect them with a couple of community events, host a few events of your own, make sure they understand who you are as the manager. If you're going to be doing the management of a property like this, those things are really important. Uh, there was two tenants on one of my first acquisitions in Stephenville, actually, and guess what's funny? They're here. They moved out of the building, they moved here. Um, they disappeared. They, they didn't let us know they were breaking their lease. They left, and both of them gave the same reason. There was new management and I didn't know who to communicate with immediately, and so I just left. Now, while you can't do that, and that's just kind of horrible, this helps avoid that. If you're super present, you're on site, there's this general comfort. They're like, hey, management's here and they care and they're aware of who I am and where I live, and they're helping me pay my rent and they're giving me time and they understand my situation. Your transitions go a lot, a lot faster, and your tenants come out and they actually end up being helpful. I've already had a few times volunteer a bunch of information or a bunch of assistance and being like, hey, we like you guys, we want to make sure this is a smooth transition, here's some things you guys should know about. Now I have some key people to go to ask questions for when I'm trying to host events. You know, there's stuff you figure out. Who was running bingo night? I still haven't figured that out. I'm gonna know that by the time I leave here today, and we're going to keep those things in place. Ample parking too, by the way. There is, um, I should go count the parking spots. There's more than 44, um, and there's guest parking, and there's— it is ample parking. It's really nice community. It's off one of the main roads and it's behind a college, so you're like, you're kind of like tucked away, which I think for a senior village is really important. It's nice, it's clean, it's simple. Uh, some people have beautiful gardens. I— one of my least favorite things when people like over-garden outside their unit, it looks cluttered. Everyone here kind of— it just, it feels like everyone's with the program, which is really nice. How do you handle all the keys? Well, we're going to be master keying this place, but keys go— we actually— this, this building behind me, that was the main office. A lot of the keys are going to go in there. I've copied the master key. I always store master keys off-site. There's sometimes backup keys that are hidden in a lockbox, but We have a nearby location that will have the master keys for the building, get the whole thing set up. It's, it's not that bad. There's 44 units. We manage hundreds of units. It kind of goes in with the rest of the keys. They get labeled, they go in their lockbox, they're good to go. Julie's had a very familiar situation. No rental records except a list of who paid what. Uh, one thing I noticed about this property, it was actually pretty well managed. And when I walked you guys through the main office, it's nice. Like, it's really nice. So they did a good job here. One thing they didn't do a good job on is, um, getting the leases signed. I have a whole bunch of leases. People are paying, rent roll is being met, but the leases aren't actually signed by anyone. I just have a bunch of unsigned leases that are apparently being honored. Uh, that's good. That's going to get fixed because I'm surprised the bank didn't call that out. I was expecting it. I thought it was gonna be able to work. They never brought it up, but if there's an audit, there's probably— someone's gonna be like, why do you have a whole bunch of unsigned leases? We're gonna clean that up really quick. Luke, good to see you, by the way. I haven't seen Luke in, uh, in a couple lives. Luke, good to see you, man. Hope all's going well. Happy New Year. Heck yeah. This is the type of stuff we want to buy. When I tell people, like, go out and buy something nice that you're proud to own, provide great housing to great people, this is exactly what I mean. Also, if you want to get a cool truck, that's my new vehicle now that I'm a dad. We finally went to two cars. We talked earlier in this about being, staying frugal, living under your means. I lived, my wife and I shared a car for basically our whole marriage. To focus on growing the business and sticking together. Not only was it great for our marriage because we spent more time together, save money. We're finally to the point where I'm like, you know what, if I leave, I kind of want to be able to work on the property while someone stays home with baby. It got through car time. So Toyota Tundra 1794, highly recommend. Can you show us the pool? I cannot because there is no pool. There's a workout center, but there is no pool. Um, not uncommon for senior living because this is a 50— it's not like this isn't like a, uh, this isn't like a retirement home or anything. There's not on-site medical, but this is a 55 and up. So I want to reduce our liability and the odds of people drowning, so we're not doing that. That's gonna be not part of the, not part of the program. There you have it. 44 units acquired. Here's the office. That's the program. It's time for me to, to get back to work and start helping the team out with stuff. I'm sure I'm going to start getting glares of, why is Christian still just talking to the camera while we're all working? I'm going to get back to work here, get on to my 9 to 5 around this property. Thanks for joining, guys. See you on the next episode.