One of the biggest struggles when we first got started was scaling after deal #1.
I didn’t want to take outside capital until I did a project of my own and ultimately had proof of work.
The first purchase was an FHA loan on a duplex that allowed me to house hack.
Closing on the first deal felt good for about 10 minutes and then I quickly realized I needed to do multiple of these to ultimately create the company I envisioned.
So, that’s what we began doing.
After the first, we purchased our second 7 months later off-market.
After the second, we scaled into larger apartment complexes and bought our third property 5 months from the last.
After the third, we had built up trust amongst our brokers and were now starting to see more off-market deals, pocket listings, and other special situations.
We leveraged this and sourced our fourth property just over 5 months from the last purchase, off-market.
During the renovation period of our fourth purchase, we received word about another apartment complex (in an area that we target) potentially getting listed in the next month.
We arrived in 15 minutes, underwrote the property in the car, and were the first offer in.
It was one of only a few times where we’ve sent in a full price offer.
Why?
The property was significantly undervalued (6 figures+).
We knew from the start that it was either a mistake or there was something deeply wrong with the property.
After checking the latter of the list, we found it was an oversight and the listing team quickly came to same conclusion after receiving numerous offers within a few hours.
We ultimately won the bid but can confidently say all the transactions leading to this one, allowed for it.
If we didn’t have a track record of closing, executing nice renovations, managing properties well, and doing things the right way- we very well wouldn’t have been gotten the contract.
That reputation is still being substantiated each day and our hope is that it continues to position us well within the markets we target.
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