We went through it, so you don’t have to #realestatehack #multifamilystrategy #creativefinance

They buy these deals, especially when they're buying low-down deals. They're going to buy deals based on the cash flow, which they should, but they're going to do the project based on only the cash flow. They're going to say, hey, I can do this deal for basically no money out of pocket, and so I'm going to raise exactly what I need to close, not what I need to do the project, and then we'll let the tenants pay over time and we'll fix the project. So maybe we have a vacancy here, a vacancy there, we're doing rent increases, when we have a move out, we'll just do everything one unit at a time. We've learned that doesn't work very well. Uh, Danny, what, what does it look like in a building where we have done that?

Uh, it's very slow and very tedious. I feel like we're always in a constant project. I mean, we always are running out of money. We have major issues that come up that we just are not prepared for. So Christian and I pivoted and we decided that was not the way we were going to go. We decided that we needed to always have contractor quotes at the start of the project, stick to them and get the whole project done.

Yes. And you're always going to go over budget with contractors, almost always. So you're going to budget for the whole thing.