058: University Crossings Case Study Part 3

Today, my special guests are Cory Boatright and Sean Terry, who were two of my partners from the very beginning on the University Crossings deal.

This is the last part for the series regarding University Crossings. We share what went wrong, what went right, and how we overcame obstacles that are often part of multifamily transactions.

Topics on Today’s Episode:

• Ups and downs of deal included asking for money from investors, stressful deadlines stressful, and people making excuses
• Learning curve on due diligence, occupancy, and other factors that affect loans
• Multifamily Investing Model: Deal must cash flow from point of acquisition
• Protect investor capital at all costs because of possible risk and intolerance involved in some deals
• Utilize Cash Flow Calculator to help analyze deals
• Property can look good on paper, but a site visit may change your outlook
• Fact-Finding Mission: Ask the right questions to determine a property’s potential
• Deals are not driven by price, but potential NOI and cash flow
• Offer Process: Get lead, do due diligence, visit property, and submit Letter of Intent (LOI); costs more, but makes you more apt to make the deal happen
• Closing delayed for various reasons - occupancy rate, seller coma, financing, etc.
• Create and present a marketing package that excites investors about property
• Investor’s Top Concerns: Is my money safe? How and when am I going to get my money back?
• Choose partners that you can trust and learn from; find commonality to find deals

Links and Resources Mentioned:

• Coaching from Cory Boatright
• Real Estate Investing Profit Masters
• Sean Terry
• Kahuna Cashflow Calculator

 

Quotes:

“We took it (University Crossings) on together, and we kicked it in its butt. But, it wasn’t without its ups and downs.” Corey Peterson

“Your (Corey) model is it has to cash flow right from the point of acquisition.” Sean Terry

“Protect investor capital at all costs.” Cory Boatright

“The only way you’re going to increase occupancy is lower rents. If that’s the model, that’s not a good model.” Sean Terry

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