Newt live 11.18.21

 have mortgage broker for the bigger deals.

its through your network and people opening doors for you

if you want to get approved for commercial loan, we partner and say i get equity, i call the bank and tell them pass them through. 

you get recommendation, because you are going to the next level. extra push behind you to get you there (get approved for bigger credit lines)

1.4 for 24 unit. how much down? when did you buy? where did you get it? how is it performing now? was it all gutted or occupancy rate?

kayjayconsulting

quit job, a month later on sept 8th 2020  I bought 44 units. 

24 unit building, 6 unit and 

last rent was 170k. by end of year 230k to 199 percent increase for rent for that building.

as leases come up, we give them 30 day notice. we upgrade the apartments. we have 6-7 of them. from 675 to 850. make building more efficient. take care of electricity. make LED lights. 

i started vending machine business. take it to the next level in improvements to safe money. 85% occupancy. never had an issue there.

our apartments 

we take care deferred maintaine, we clean things, common areas, we treat people with respect. we put a year of rent in reserve. interest rate was at 3.5%. 700k for downpayment. 

he had to bring 77k for the rent for the year. you get it back when you file your tax return for 2021. they want to make sure that the whole year was stabilized and there were no big issues. wtih covid, everyone was nervous they held the rent for the year. 

newt: what's the spread on a monthly between rent and what you spend.

KY: 2000 in rent. my building the cash flow margin is 40 to 50 percent. the buildings he buys. once he stablilizes the rent, 50% is the margin. d

newt: we focused on arv. on multi unit, its a different spectrum. what should we be looking at when its a good deal on a multi unit. 

KJ: valued on operating income. income minus vacancy then expenses. net operating income is total expenses minus 

mortgage not included in expenses. if expenses of 50. 45k left in free cash flow. 45k would be divided by cap rate (10%). could be 250k. cap rate is a PE multiple for stocks or industry stocks. 

a and B properties the cap rate are higher when you get ready to sell it. 

newt: how to find out the cap rate?

commercial real estate agent can tel you the cap rate. you can control the expenses and income, not hte cap rate. 

he made 900k in 2 years. i'm trying to make it worth 5 million. if one building is on fire, its not based on a comps. on a single family, the house is based off the comps no matter how much you put into the renovations. people say buy in baltimore, its not for me. i'm lazy i'm not trying to overwork. 

newt: zillow for smaller deals. we got old sellers. its single family. how do i find these apartment deals?

in my course, you get access. you have the reputation, people start calling you. reach out to the aprtment owners, i want to get you under contract. then sell it for someone else. big commercial brokers they will fight you. call lender and they will give you boa, bank owned properties once you have repurtation. other is if brokers can call you and tell you the deals. you can find them on loopnet. i found 5 single family homes, i found one on loopnet that noone saw it. you gotta be good. 

newt: you can only increase rent but so much, so you have to focus on reducing expenses and 

you can only cut expenses by so much. we can come up with other streams of income. coin operated dryers, moving services, vending machine. 

newt: he has classes. a lot of people following me and I'm getting funding. i met KR earlier this year. i told him i want to learn apartment deal he took me to 80 units in a day. it was like a training day. just to see the difference between residential and commercial its almost nothing is the same. he has 9 single family. 5 pack deal in baltimore. these apartment deals is when you make big money. i didn't know the debt investors and how they get people to invest in them. 

my class is open 9am to 5pm. link in bio. we serious DM me $700. I'll send you link. syndication, raising money,  how to analye the deal, real case studies, agreement of sale. appraisal. if you like fluff, don't go to the class. come to the class. work for next 12 months, once a month check in. 

debt investors even with debt investors. just like certificate of deposit. CDs pay you back in interest get the money after a year. all i need is 10k. i will give you 5% at the end of the year. or when i do a refinance. i had a debt investor for 5 years. sell property or refi or get supplemental loan to pay back the debt investor. 

KR: my partner in 2018 didnt own anything. now he's at 60 because he realized he needed to get in there. drove to boston, took me to dinner. he was doing presentations, he wants to get close to it, then debt investor then i trained him then i told him he could be a equity investor. he tried to do it on his own and he got denied. 

Newt: there's not a lot of teaching about apartments. 

KR: coach of the culture. there's not someone like us teaching this stuff. Dm him 700 to get the class

Newt: i filled this whole book up. then you learn how to analyze deals. big taste of that. or trying to get the first one

KR: newt got in my class. we get an LLC and do a property together. 

newt: i'm not trying to analyze 4 unit and down, has to be a 5 unit. it took KR 9 years to get to this level. i skipped the line. i'm appreciative. he skipped the line as well. you teaching it because you are doing it. you took me to 70 units. KR said he has 85 units just in Philly. 

we teach you so basic so that you can learn. bootcamp and mastermind. one is English and one is math. we break it down to 

what level should you be? if you get into the LLC even if you 

its about vision. learn the material, I had one student just bought a unit 225k for 5 units. he had to put down 20% that's 60k for you and a partner or get a debt investor. or do seller financing. owner acts as the bank and you put little money down.