062: Impact of covid19 to Multi-Family Real Estate Investments

Welcome to The Big Mike Fund Podcast. Today it is a pleasure and a privilege to welcome Tim Bratz. Tim is a multi-family real estate investor from the Cleveland, Ohio area. He buys, develops, and holds apartment buildings, vacation rentals, & other commercial real estate properties throughout Ohio, South Carolina, Georgia, Florida, Oklahoma, & Texas.

Today we’re talking about the impact that COVID-19 has had on one of his biggest projects: Georgia Plains. We’ll talk a little bit about the background of Georgia Plains and the mechanics behind it. Tim and I also go over his plans for the rest of 2020 as well as his view on the future of multi-family real estate investments.

Minute Markers:

00:29 – Welcome Tim Bratz

04:15 - The courage it takes to trust a sponsor and operator

08:00 - A little about Georgia Plains

14:13 - The mechanics behind Georgia Plains

17:00 - How Tim pays an overfunded project

18:00 - Rent per door on average

21:12 - How did the virus affect the overall project?

28:00 - What are Tim’s plans for the rest of 2020

36:25 - How to get a hold of Tim

37:25 - Thank you for listening to the Big Mike Fund podcast

Resources:

Tim Bratz, Facebook

Tim Bratz, Instagram

Tim Bratz, LinkedIn

Quotes:

“I buy pretty heavy value-add deals like the one that you're involved in. There is a lot more work but there's a lot more upside to those.” – Tim Bratz

“When you have that distressed of a property and the property has that bad for reputation, you got to go in and you got to clean up everything before you start rebranding, marketing, and bringing in new tenants because otherwise, you're just going to track the same type of tenant who's not respecting the property, not respecting their neighbors..” – Tim Bratz

“When I invest, I want a predictable rate of return. At the same time, I want some equity upside. If I'm going to help somebody make a million dollars. Isn't that only fair that I get $100,000 or $200,000 also?.” – Tim Bratz

“All this money goes back into the property to reinvest into the property to make sure that we're providing a clean, safe, functional, cosmetically improved housing for you as the tenant. We explain that. We said, that being said, if you are facing hardship, please reach out to us. Proactively, reach out to us. We're not going to chase you down, but if you reach out to us, we will put some workout plan together on a case-by-case basis to help you through these difficult times.” – Tim Bratz

“It’s hard to find deals but we do have one deal and it's a decent deal. It's the same thing. You can give the deals in the middle of a COVID situation. It's the right value-add plan. You feel comfortable based on all the numbers you look at, but the uncertainty is still out there. It's possible that there could be better deals in the future. On the other hand, it does appear. Who knows, right?” – Mike Zlotnik