It took days of mission planning, precise calculations and coordination across multiple teams in order for Pat to lead a 2-ship flyover before a sell out crowd at the Acrisure Stadium o
n September 1, 2022. The same rigorous preparation to lead a flyover is key to success in buying and taking over an apartment complex.
Was he on time though?
In order for the crowd to erupt in cheer, the two-ship of F-16s need to flyover the stadium at precisely the exact moment that the crescendo of the National Anthem is played. Otherwise, two F-16s just randomly flew over the stadium. I mean, cool, but not that cool, right? Any pilot can fly over a stadium that large, but not any pilot can calculate, while flying 400 mph and 1000 feet above ground level, the exact moment to flyover. The same mission preparation and execution of a flyover to meet a Time Over Target (TOT), is synonymous with searching, underwriting, establishing a team, closing and taking over a property. Arguably, though, the real execution of "meeting your TOT" in a commercial real estate deal is not just closing on the property, it's getting as close to--and exceeding--projected investor returns, as was originally calculated. Doing this is no easy task. It requires careful planning around market analysis, calculations based on actual and current models vs. a projected analysis or proforma just to name a few.
A question we ask ourselves: Can we take each apartment when a tenant vacates, remodel it and remarket it for a higher rent, which will generate a new caliber of tenant and increased cash flow and property value? Coordination is required with a property management team that understands your vision and has a proven track record of executing within an assertive timeframe and clear vision that we share. Instead of logging hours flight planning, coordinating with ground agencies, observing weather, and practicing the flyover itself, effort is required to perform other tasks. Some of these tasks include but are not limited to market analysis, project bids, establishing regular calls with the management team, providing communication to investors on asset performance, all while ensuring tenants are cared for and have the best living experience possible. Back to the question at hand though, the two-ship flyover was executed at exactly the right TOT, and in the precise location, thanks to a lot of hard work mission planning, and maybe having a little fun. Hail to Pitt!
Update on 846 Piney
Progress with our 30 unit, 846 Piney in Columbia, SC is coming along nicely! When we purchased this property in November of 2021, the average gross income per month was around $28,500, or around $950 per unit. Since we purchased this property, we overcame some challenges with previous ownership either not wanting to relinquish control or giving us a hard time with the takeover. Since then, we have been able to successfully renovate around 25% of the units and meet and exceed our target market rent of $1400 per door with those renovated units. Right now, despite having vacancies that we are capitalizing on with renovations, we are grossing around $34,000 per month and diligently working to renovate the majority of the units by the summer of next year, which when complete will yield around $40,000 a month, vastly increasing cash flow and putting us in a position to refinance with cash out, and purchase another property. Stay tuned for more exciting news with Piney!
Join our Mastermind!
We often get asked how we manage our time, or where we find deals, and how we calculate our underwriting, etc. Our desire is to not only provide cash-flowing assets to invest in, but also to help move the needle for our sphere of influence. We're launching our first Mastermind at the beginning of the New Year! We will provide sound basics for searching, underwriting, partnering on deals, raising capital, time and asset management, and closing the deal!
This will be limited to 10 investors to start. If you're ready to take your investment strategy to the next level and make money with movers in the industry, don't procrastinate and sign up now!
Listen to our latest podcast on Joe Fairless' Best Ever CRE Podcast!
Comments