I’m very grateful to be part of a group that closed on a 62 unit complex in Johnson City Tennessee. This is my first multifamily investment in an active role. It came almost exactly a year after joining a group coaching program through Michael Blank’s apartment investing course. I knew I needed to take more decisive action and I hoped investing in an accountability type coaching program would accelerate my results, I have no doubt it was a significant reason why I was able to participate in this opportunity.
It almost did not happen-multiple times. Being a large rehab and repositioning project made it a marginal deal for nearly every community bank. As our financial due diligence period came to a close the one bank that was willing to take a shot denied the loan at the committee level. They were keen on the project but were not confident in our level of experience. We just did not meet their experience level criteria. This led to a bit of a scramble to find a lender. After multiple calls and conversations we did secure a bridge loan and closed the deal. It took multiple extensions, increasing amounts of hard money, raising more funds to replace capital that did not come through, all while trying to get an estimate on a significant structural problem. Most of the credit goes to two investors in our group: Eli and Darren. Without Eli constantly working the phones and coordinating the deal while Darren took care of the property level activity this deal would not have happened. I’m very thankful to have them in our group.
It’s amazing how the conversation changes after you’re part of a successful close. A week after the closing my wife and I attended a Wheel Barrow Profits live event in Nashville. Many of the people in our group are part of this education platform, including myself. We are by no means high rolling investors, however successfully taking down a decent sized complex garners a certain amount of interest. As luck, combined with a bit of a track record would have it, the Monday following the event brought another opportunity. Eli had gotten another property under contract, this time in Chattanooga. The wife and I had planned to stay a week in Tennessee anyway, so we were able to tour the property and commit our involvement (and money) to it. Some people refer to it as the rule of the first deal: if you want it and pursue it, the second deal can come in quick succession. Indeed, it did.