Welcome to the Fearless Innovator Podcast, my name is Mechiel Kopaska and I am your host.
This week’s topic: Sale of my Multifamily Property
From my last episode on Owning a Multifamily, I told you that after 9 months into ownership, I had completed the upgrades, increased the rents as much as I could. And was in a holding pattern on the seawall repairs when I decided that since my 10% HIGH Interest only Loan was coming due, I would just sell it! I’m always a fan of Plan B’s! You learned that:
- Other landlords were offering free water and sewer
- Rents were capped at $825 per month
- Filling vacancies would take 3 to 4 months to fill.
- My expenses had increased significantly
I reached out to my residential real estate agent – because keep in mind I didn’t know I should have used a commercial real estate guy. We had it pocket listed for a short stint and I went around to many of the REIA meetings trying to find someone interested in buying this, but found no takers.
One day, I had been seeing where a bunch of people would get together to go play the Cashflow game. I had always wanted to play because I had the game but I had yet to master how to play it, so I decided to travel the hour clear over to Largo to go the play the boardgame. Funny thing happened, I actually ran into a guy I knew from one of the REIA’s. I chatted with Mike for a few minutes and he told me he wasn’t there to play the game but he was going to meet some guy named Tyler. So Mike sat next to me, we ate our pizza,drank our water and chatted for a while. Right about when the game was about to start, Mike got up and said, well, I gotta go, I’ll see you later Mechiel. Mike went outside the building and started talking to a guy in a blue shirt. After chatting with Mike for a few, that blue shirt walked in the room and then he sat down in the back of the room. The two moderators came forward and said to everyone, let’s go around the room, stand up, introduce yourself and tell us a little bit about you and what you’re doing in real estate. When it got to me, I said my name is Mechiel Kopaska and I’m here to learn how to play the cashflow game so that I can play it in my area and I have an 8 unit apartment complex for sale. The guy in the blue shirt held up his hand and said, talk to me after the game about your 8-unit apartment complex.
I went on to learn how to play the game and had enough knowledge to hold a meeting in my area. After the game was over, that blue shirt now moved to the front of the room and he had several people around him. I said to myself, what makes this guy so special? Who is he? Why are people flocking to him?
Well, I started to get aggravated because it seemed like I had been waiting an hour just to get to talk to him. When it was finally my turn, I said Hi, I’m Mechiel and you wanted to talk to me about my 8-unit apartment complex? He said, Hi I’m Tyler. I said to myself, this is the second time I’m hearing that name. Who is this guy?
He said, oh yeah, where is it located? I said it’s in Hudson on the water thinking that being on the water would have all this sex appeal, right?
Nope, he said, well I don’t want it. I said, how do you know you don’t want it, I haven’t told you anything about it? He said, well do you pay flood insurance? I said, yes. He said, well I don’t want it. It was then, that even though I was getting shot down, I realized this blue shirt Tyler had criteria and I needed to know more. I wasn’t going to let him shoot me down and me curl up in a corner without understanding more of his criteria.
Now I started asking more questions to the point where he finally says, how about this, why don’t you go to Cashflowguys.com/AskTyler, get on my calendar for a free consultation? I said, Ok. I’ll do that.
I went right home and booked my appointment. After doing so, I started reading about this dude and I started asking my friends if they knew him. Turns out he’s the Cashflow Guy – as in one of the top 5 Podcasters on Real Estate just under Bigger Pockets, yeah that guy! He’s a seasoned residential and commercial agent on steroids. He’s sought after because of all the knowledge and creative deal structuring he’s done and he loves Multifamily. This explained why my friend Mike was interested in him. I know Mike was about to invest in Multi-family so I’m sure he was seeking Tyler’s advice. Who knew this guy was in my back yard!
I showed up prepared with all documentation in my sight and within a click to finding anything I may need for this call. Initially, Tyler asked me a series of questions and I followed up with answers and then I just started spewing out everything I knew about this property, what I done to it, what my plan was and how I tackled my plan and how now I ultimately wanted to sell it. After several minutes, he says, my wife and I will be in that area on Friday, do you have time to meet with us at the property? I thought to myself, I guess, I must have done a good job selling this if he now wants to meet me onsite. YAY! Yes, I’ll meet you on Friday. He said we’ll take a short tour of the property and then we’ll go to a local restaurant and talk more in detail. Sound good? I said, yes, that works for me!
The date and time were set!
We did just as Tyler suggested, toured the building and a looked at a couple of the units and then we went to a restaurant where we sat for the next three hours discussing this property!
He told me that he and his wife did invest in multi-family and were fairly sure they didn’t want to invest in this one simply because they bought property that required little or no repairs and then there was the cost of the flood insurance. I was a bit disappointed but then he said, I’m confident I can sell it for you where you would make a significant profit and I’ll also tell you right up front that I charge more than most when I take on listings. Why? Because I’m great at what I do and what I offer far exceeds what other agents will do or can do for you. What set him apart from other agents was his marketing strategy. I don’t think I’m at liberty to tell you what his strategy is but I’ll just say it clearly intrigued me.
I knew the day I met the guy in the blue shirt he was a very confident guy and after learning more about his background, I believed him! He was also a man of ethics and morals. We struct the deal with a handshake and the next day he said I’ll be in touch with next steps but the first step was for me to fill out a complete and full disclosure of everything I knew about the property and NOT to leave anything out!
He made me get another Structural engineering drawing so that could be delivered to any potential buyer. He had his photographer come and take still pictures as well as drone pictures and within days the property went on the market for the value he quoted me.
The only time I ever heard from Tyler was when he had a question that he could not answer. I know for a fact that there were A LOT of moving parts going on behind the scenes, from qualifying buyers, validating buyers, multiple offers – none of which I was previa too. He made his job seem seamless to me and then less than 1 month – we had a full price offer! Yes, I said full price offer with a qualified buyer!
1 month later this property sold for top dollar and I had made a HUGE profit.
That’s the short story – but behind each of these steps, I bet his team encountered over 20 points of failure that at any point this thing could have fallen apart, right up to the closing table.
Why didn’t it? Because I hired a well-tuned, fine oiled machine that kept their eye on the finish line and delivered the expected results.
I never once knew any of the negative stuff behind the scenes and I know it was there, but it was not necessary for me to be impacted by something I had hired a team to do.
I heard an occasional rumbling – but it was always solutioned before it hit my ears.
As the old saying goes, you get what you pay for! I paid for excellence and I got it!
If anyone has a multifamily property for sale, I come with experience and a great team! I’m looking for my next challenge!
If that sounds like you and you need help, reach out to me at fearlessinnovator.com/contact.
Thank you for listening, I hope you were inspired, entertained or you learned something new!
You can get a free copy of my book Why my J.O.B. Quit Me, jumpstart Your Firing, go to fearlessinnovator.com/freebook..
Catch me later…