Dr. Breathe Easy Capital’s Post

We've secured the deal for $13M less than what the original owner paid 5 years ago! And last Friday, we officially closed on it! This acquisition would not have been possible without your support, and I appreciate your invaluable trust and partnership. I've said this deal is the best one we've seen in Multifamily in more than 5 years, with $143M AUM and 1043 units under management… I've seen more than our fair share! …… Overview of The Ridley acquisition: 👇🏿 Purchase price: Acquired at $66k per unit, a 30% discount below market. Neighboring comps: A neighboring property sold for ~$104K per unit last month. Strategic location: In the heart of Houston's Galleria/Uptown District, a major business and commercial hub. …… Investment highlights: 👇🏿 Annual Return Rate (ARR) of 20-25% Equity Multiple of 2.3x Average Cash on Cash returns of 7-9% $75k Minimum Investment …… The state of this asset: 👇🏿 "Distressed seller but NOT a distressed asset" → We've secured the deal for $13M less than what the original owner paid 5 years ago! → The seller has invested $4M in capital expenditures to enhance the property. → The property currently sits at 90% occupancy → Although the seller is distressed, the property is NOT distressed and even qualifies for highly desirable Agency Debt based on its condition & financial performance. → $26M to assets under our management  → 405 units added to our units I’m excited to kick off our business plan for this asset as soon as possible. Our in-house property management firm, Emerge Living, oversees the operations! Starting next month, I will give you regular investor updates to inform you about our progress. The first comprehensive set of financials will be included in the next update. Would you like to get added to our investor community? Drop me a DM and I’ll add you! Drop a follow and join my journey! Trust me, bigger things are yet to come 🚀

🏘️ I've had two multifamily acquisitions that I have spent considerable time on this year. Neither came together, yet. Both for similar reasons.   The owner thinks the property is worth much more than it is. I was very surprised by the expectations from both of these ownership groups. Cap rates would be low, and these properties need work. What are the owners thinking?   They are probably thinking exactly how I would be thinking. I don't know because that information is not usually shared, but here are some likely reasons.   They don't have to sell. They have cash available to fund a property that's losing money, and they're on track to getting income up and expenses down. They are certain interest rates will be coming down. They're certain a buyer will emerge who needs a deal just like theirs.   In other words, not desperate, at least not yet.   Many deals are bought months after the initial offer was submitted and rejected. This is the time to wait it out. Being aggressive might be our natural tendency but it's not always the right answer.   The other important observation is that a deeper understanding about a property comes with time. The first conversation or two with the broker is not when you'll learn the most important information about this property. That comes later, after they know you're interested.   I have uncovered information about both of these properties that reassures me that I will have another chance with them, because I was persistent and respectful. ____ #multifamilyinvesting #multifamilyrealestate #passiveincomeinvesting #financialinvestment #realestatesyndication #multifamilyinvestor #multifamilysyndication #passiveinvesting #passiveinvestor

You don't have to buy a 100-unit building to get started in multifamily. Here's how one guy got started: I was talking with an investor yesterday from a cold call. It started a little rough, but eventually we started talking about how he got into the business and he really got into it. He and his brother went in together after a few years of saving up and bought a triplex a few minutes from where he lived. They self-managed, in his words "arrogantly", and made a million mistakes. But they got better. They started buying more, and now own more than 150 units across the state, mostly smaller properties. He's held some, he's sold some, but overall he considers himself in buy mode and wants to expand. Now, he's looking to start selling off some of his smaller units to purchase larger acquisitions - he's even looking at a 100-unit complex now. I love conversations like this. Best part of the job.

Ever wondered why a home might come back on the market? 🤔🏡 There are many reasons a property reappears for sale, and it doesn't always mean there's something wrong with it. Sometimes, financing falls through, the buyer's circumstances change, or inspection results lead to renegotiations that don't work out. It could also be as simple as the buyer getting cold feet. If you see a home back on the market, it might just be your second chance opportunity!🔑 Jeffery L. Hein Real Estate Consulting Sales & Acquisitions 📲760-753-2000 🌐[email protected] 🪪DRE#01232396 Premiere RE Group DRE# 01520947 Premiere Properties, Commercial, Investment 📍6183 Paseo Del Norte #150 Carlsbad, CA 92011 #jeffreyheinrealtor #carlsbadcahomes #delmarcahomes #carlsbadcarealestate #sandiegocarealestate #investementrealestate #encinitascarealestate

2-3 years ago I sent an offer to a seller for $15mm and he mentioned he was looking to get $24mm. I stated that I have some other investors who are interested, we can potential get you more for your property. He insisted that he wouldn’t work with a buyer/broker outside of Los Angeles due to market knowledge on his property value. He ended up listing the property with a broker and has thus cut down the price to $20mm and still has no traction. His pride got the best of him. Especially at a time when the industrial market was red hot and interest rates were good. The condition of his property is only getting worse. A listing for 2 years. I bet he’s getting a bunch of offers at >$10m A good ole saying is yesterday’s price is not today’s price. #pefirms #privateequity #assetmanagers #portfoliomanagers #industrialrealestate #realestate #syndication #acquisition #cre #commercialrealestate

Another Victory with a Fire-Damaged Property! 🚒 🏠 We've just completed the purchase of another fire-damaged property, wrapping everything up—from agreement to completion—in just 3 weeks! This includes searches and inquiries. 🕒 While others may struggle with solicitor delays, we’ve proved again that with the right team, speed is no issue. Why do I target fire-damaged properties? 🛠️ Brand new home post-refurb 💸 Minimal maintenance costs 💰 Attractive purchase price for a higher ROI ⏱️ Quick acquisitions Got a fire-damaged property you're looking to sell? Don’t hesitate to drop me a message I’m in the market to buy! #PropertyInvestment #FireDamagedProperty #RealEstateInvesting #UKPropertyMarket #InvestmentOpportunity #PropertyRefurbishment #FastPropertyDeals #RealEstateDeals #PropertyROI #RealEstateLife #SellYourHome #QuickCompletion

From broker to a ~$1.5 billion-dollar multifamily portfolio (+6,500 units) - please enjoy my conversation with Trion Properties, Inc. 's co-founder: Max Sharkansky. We discussed: • how he bought his first few deals • transitioning from broker to principal • how to scale a multifamily investment shop to +6,500 units • how he is underwriting multifamily acquisitions today • and where he thinks valuations are headed Max DM'd me on Twitter ~2 years ago and within 6 months he was under contract to buy a ~$108M multifamily property from our team. We talk about that story as well, and much more TIMESTAMPS: 0:00 - Trailer 0:21 - Max’s background 3:49 - Beginning career as a broker at Marcus & Millichap 7:29 - Buying his first deal and competition  10:26 - Beginning to raise capital and building Trion 13:00 - Navigating the 2008 market 16:06 - Growing portfolio of notes 20:21 - Decision to go in-house for property management & construction 26:21 - First deal and connecting through twitter 29:55 - Transition from LA to Miami 33:33 - Trion Properties payroll 34:21 - Trion Properties portfolio  36:21 - Lessons learned from Trion Properties 40:04 - Current market conditions and interest rates 47:42 - Growth of Florida and Miami market 51:31 - Current investment opportunities  54:00 - Closing statements on Miami Episode live now (link below)

People talk about “value-add” in multifamily acquisitions as if value is automatically created upon purchase. Five months into our 16-unit, here is what the value-add process actually looks like: 🔹 Net income to date is NEGATIVE $17,402 🔹There have been five evictions so far for non-payment and various breaches of lease (drug dealing, etc.) 🔹One tenant evicted for drug dealing was found living in another unit two months later 🔹The city-owned water meter was broken and we were overcharged almost $8,000  🔹Our trash area is a frequent dumping ground for other people’s furniture 🔹Our 1990’s combo water heater/furnace units are nearing the end of their useful life and starting to fail 🔹While re-shingling the roof, we found most of the plywood was rotted and also had to be replaced 🔹It’s clear past tenants were using our parking lot as an auto repair lot True value-add investing is hard, and we’ve had to be 1) laser focused on operations as we turn this building around; and 2) comfortable running at a negative as we stabilize the building. We’ll get there, but it isn't automatic. And if the process was easy, the old owner would’ve done it. (photo after our worst tenant left)

Case Study: Transforming a 10-Unit Deal in Waterloo, Iowa. Excited to share our latest venture in Iowa—a strategic real estate acquisition that exemplifies foresight and opportunity in the market! Deal Overview: We've secured a 10-unit property for $293,000 with a seller-financed downpayment of $55,000. Initially, the property appeared undervalued, with the seller including their mortgage payment in the Net Operating Income (NOI) calculation, inflating the expenses by $18,000 annually, which depressed the valuation by $225,000 that my team will capture immediately walking into this deal. Identifying Value Add Opportunities: Upon deeper analysis, we discovered that the rents were $350 below market rate—a significant opportunity for immediate upside. With planned adjustments over the next 1-2 years, we aim to optimize rental income, thereby increasing the property's profitability. Projected Exit Strategy: Our strategy involves elevating rents to market rates, enhancing operational efficiencies, and positioning the property for a successful exit. Forecasting ahead, we plan to sell the property at a projected value of $1,031,024, based on an 8% cap rate. This strategic move not only maximizes returns for our investors but also leaves room for the next buyer to capitalize on further growth potential. Strategic Approach: Entering the deal correctly is crucial, but equally important is setting the stage for future success. By addressing immediate inefficiencies and planning for long-term value creation, we ensure a smooth transition for subsequent stakeholders. Investor Returns: After budgeting $100,000 for Capital Expenditures (CapEx), our projected net profit stands at approximately $638,000. This gives our limited partners a 3.57x Equity Multiple & a 30.76% IRR over 1.5~ years. This outcome underscores our commitment to delivering substantial returns while maintaining property integrity and value. Conclusion: This project exemplifies our dedication to strategic real estate investing—identifying undervalued assets, implementing effective operational enhancements, and maximizing returns for all stakeholders involved. Looking forward to sharing more success stories as we continue to navigate and thrive in dynamic real estate markets. Ingram Capital Travis Sydow Billy Helvey Bryant Dawson #RealEstateInvesting #PropertyAcquisition #ValueCreation #InvestmentStrategy #IowaRealEstate

We are pleased to announce Breneman Capital's latest acquisition in Chicago's Lincoln Square neighborhood. Our Founder and CEO, Drew Breneman, recently commented on the purchase of the distressed 25-unit property bought out of foreclosure: “We were drawn to this particular property since it checks all the boxes we typically look for: Well-located, high-quality construction and an immediate path to increase the value and cash flow quickly through leasing the vacant retail space and adjusting the apartment rents to market rates,” he said in a statement. This acquisition reflects Breneman Capital's strategy of identifying high-quality assets with strong value-add potential. The Lawrence property was listed for nearly $9 million but was acquired by Breneman Capital for just over $7 million. Read more about this acquisition at https://lnkd.in/g8djrwND #RealEstate #Chicago #Multifamily #InvestmentStrategy #BrenemanCapital #PropertyAcquisition