I Bought a 32-Unit Apartment Complex Using None of My Own Money | Here's How You Can Do it Too!
youtu.be
In this YouTube video, the speaker shares their experience of purchasing a 32-unit apartment complex without using any of their own money. They found the deal through an apartment complex broker and recommend getting to know local brokers to get deals brought to you first. To fund the purchase, they used a quasi-burst method, which involved finding a private lender to fund the entire down payment of $220,000. They had a track record with the lender of paying back loans and were transparent about the deal's numbers. The lender was paid back through an interest rate of 8% annualized, which was taken out of the property's cash flow.
Over two years, the speaker explains how they were able to increase the value of the apartment complex by increasing cash flow and decreasing expenses. They did this by making slight repairs to the property, sprucing up the units, and increasing efficiencies. They also had a good property management company in-house that helped them cut down on expenses and increase cash flow. They paid the bank, owning expenses, and their private lender with the cash flow and put the rest back into the building. At the end of two years, they took the property to a small local bank and had it appraised for $1.6 million, adding $500,000 of equity.
They did an 80% cash-out refinance of $1.2 million and used the difference to pay back their initial lender. They now own the property and have increased cash flow because they stopped paying their private lender and got better terms on the refinance. The speaker encourages viewers to think creatively and subscribe to their channel for more content.
In this YouTube video, the speaker shares their experience of purchasing a 32-unit apartment complex