Ep. 39: Due Diligence Tips for Buying Apartments with Nathan Tabor
Multifamily Insights
English - March 27, 2018 11:30 - 51 minutes - 47.1 MB - ★★★★★ - 207 ratingsInvesting Business Marketing apartments cashflow realestateinvesting apartmentinvesting buyingapartmentbuildings buyingrealestate learningtobuyrealestate marketing multifamily Homepage Download Apple Podcasts Google Podcasts Overcast Castro Pocket Casts RSS feed
Nathan Tabor has operated more than two-dozen businesses since 1999, grossing over $150 million in sales. He was introduced to real estate when a man came to his used car lot with a building he needed to sell. Since then Nathan has successfully flipped 26 properties in 9 years, grossing over $52 million in sales and has consulted on deals worth over $200 million. He’s had amazing successes and epic failures, and is the author of "How to Find, Finance, Fix and Flip Apartments." Today, he shares his take on the Winston-Salem market and his best due diligence tips when acquiring apartments.
Key Market Insights
Ran a “buy here, pay here” car lot when a guy walked in and said he had an 18-unit complex to sell After having multiple issues securing financing was told to meet with someone who gentleman and received 100% financing Had $500k in debt, sold it for $850k and netted $253k in profits Second seller saw him doing the work and offered to sell his property and paid the same price per unit Second deal had a setback issue that ended up costing $150k more than planned Focus market is Winston-Salem and Greensboro 11th year investing in real estate and has seen 4 peaks and valleys Sees big city investors coming into Winston-Salem Gets almost sidelined in a timeframe like this when properties that should sell for $15k/door start selling for $30k-$35k/door If market is maxed out at $900/mo for rent, you’re not getting more than that no matter what you do to the unit. Focus on Class C or D+ properties with high issues, runs his number backwards, like a flip property Cap rate determines value for the area based on what has been sold In Winston-Salem properties have sold at 2%-3% cap rate, and others that have sold at a 24% cap rate Look at Loopnet, CoStar or brokerage firm to help determine cap rate Cap Rate = Net Operating Income / Sales Price Most properties are in 7.5-9% cap rate Found opportunities in rural areas, 15 minutes from downtown, off MLK, Seeking an owner in distress or ready to exit Pulls police records, city complaints, housing authority from last two years and looks for patterns 80% of people don’t have a business plan for their business
Bull’s Eye Tips:
Winning Your Market: The answer is no until you ask
Tracking Market Changes: Educate – read, talk to building inspectors and leverage a team
Daily Habit: Reads Proverbs daily
Resources:
How to Find, Finance, Fix and Flip Apartments by Nathan Tabor
Best Business Books:
21 Irrefutable Laws of Leadership by John Maxwell
Digital Resources
Tweet This:
"Business is simply how much you can make versus how much you can lose"
"You can not rely on someone else’s information – go direct and ask the source"
"You make your money whether you hold it or flip it"
"Rent rolls are worth nothing, get bank statements"
Places to Grab a Bite in Winston-Salem:
Connect with Nathan:
Apartments.nathantabor.com
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