One question and 21 doors later

One question and 21 doors later:

"Do you have any other properties you’re interested in getting rid of?" This is a question we train our acquisition team to ask when speaking to sellers.

The original property we reached out about is this 4-unit residential multifamily near the fairgrounds here in Nashville, TN.

We negotiated with the husband and wife for weeks but finally got to contract .

That deal was pretty straightforward, but we followed up asking if they had any other properties they wanted to get rid of. They proceeded to tell us about a 17-unit apartment complex in Florence, AL, that they were pulling their hair out over.

It was one thing after the other, with thousands of dollars spent fixing it up, hiring and firing several contractors and property managers. It had been a total headache for them since they purchased it years prior.

See, the sellers were musicians, and all they knew was that when they made money, they needed to make their money work for them by buying real estate and getting monthly cash flow.

And that’s exactly what you should do….

They just bought it wrong… really wrong .

After doing a deep dive into the Northern Alabama market and the sellers' financials, we realized:

1.) Florence was a slept-on submarket of Huntsville, AL, a blue ocean so to speak

2.) They were actually losing a lot of money EVERY month. We call this underwater in the real estate world.

We pride ourselves on being real estate solutionists, a term we heard our dad say when we were kids, and it stuck with us.

Now, since they were underwater, we couldn’t pay close to what they owed on it or we would have started losing money ourselves.

So, we got creative

We presented them with an owner financing offer, and the sellers agreed to hold the note at 4% while we did what we were good at.

We took the deals down with some friends who had some extra capital they wanted to use to invest in real estate, and they became our financial partners for the purchase and rehab of both properties.

Our team got the riffraff out, rehabbed the 4-unit to hold long term, and turned the 17-unit into a boutique hotel for short-term rentals (Airbnb’s) creating passive income for us and our partners!

It’s a MUCH more detailed story lol but all in all, if we had not asked the follow-up question "Do you have any other properties you’re interested in getting rid of… ?" AND had the relationship with our new financial partners, we would have never embarked on this 21-unit journey.

Gotta love #multifamily