126: Due Diligence: More than Meets the Eye

Multifamily Legacy Episode 127: Suggested Title: Due Diligence: More than Meets the Eye When Stuff Gets Real OR Due Diligence: Dark Side of Multifamily Investments

Where can you go wrong and make mistakes? When doing big deals, investors should do things in due diligence. Some will do it, some won’t. Most are not afraid to roll up their sleeves and get dirty.

Today’s guest is Jorge Abreu of Elevate, a real estate investment group that acquires value-add multifamily assets. Jorge’s construction background and commercial investment experience helps him to understand everything about due diligence.

 

Topics on Today’s Episode:

Raising Capital: Bigger you go, easier and safer the deal CapEx Budget: Deal looks great, but then stuff gets real by doing due diligence Down Units Difference: How bad are they? How will they impact CapEx budget? Due Diligence Process: CapEx, maintenance, construction, software, pictures Tracking Dirt: What happened in Unit 5? If you don't track/measure it, it gets lost Faith and Honesty: Know more than seller and create opportunities to negotiate Due Diligence: Do it to know what deferred maintenance and upgrades will cost Don’t Be Lazy: Get bids and set expectations; a lot of work, but worth the effort Construction Company: Elevate is a benefit, like property management Team Building: Retreat to celebrate and offer recognition Focus: Too much noise? Pick your passion and conquer it

 

Links and Resources Mentioned:

Jorge Abreu’s Email Jorge Abreu on LinkedIn Elevate Commercial Investment Group JNT Developers HappyCo Marcus Millichap David Lindahl Three Feet From Gold Joe Fairless Kahuna Boardroom KahunaHQ Kahuna Investments Multifamily Legacy Podcast on YouTube Multifamily Legacy Podcast on Facebook

 

Quotes:

“If a seller’s talking, he's lying. He's definitely trying to skirt the issue.” Corey Peterson

“It makes no sense because it's going to come up, we're going to uncover it.” Jorge Abreu

“Whatever you find, can and will be used against you.” Corey Peterson

“People could steal all the time, they may slide out the back door. We can just talk about the dirt. The dark side of multifamily is scary." Corey Peterson

 

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