Can you become a millionaire with just one commercial real estate deal? YES! Can you do it without years of previous experience? Of course you can! Can it be done in today’s real estate market? Absolutely! In fact, you’re about to discover the incredible true story of how an airline pilot from Houston Texas recently accomplished this feat. Plus, you’ll learn exactly how he did it so you can do the same.
Meet Chris
Chris started flying with the Navy in 1977. He eventually began flying for airlines and is currently still employed by a major airline. Chris has a rather large family; seven children and many grandchildren. His entire life consists of family, flying, and now, managing the managers of his 90 unit multi family commercial property.
Overcoming a Slow Market
Many people say there aren’t any good deals left in Texas or in any other major city. But while Chris did experience challenges with finding good deals in his market, he was able to find people motivated to sell that were off market. Chris testifies, that even if you think the economics look down on the outside, that there are still a lot of motivated sellers out there, that just need to be found.
The Million Dollar Deal
In March of 2016 Chris began researching commercial real estate on the internet and found Commercial Property Advisors on Youtube. He was then interviewed and accepted into our mentorship program.
When his big deal that made him a millionaire came into the picture, Chris had already found three properties that our team was helping him write contracts for. One was a four-plex, one was a 16 unit, and one was a 26 unit. With the owners so close to signing, our advisors recommended Chris begin interviewing the best lenders.
Chris began scouring Houston for lenders, brokers, bankers, and mortgage companies. He touched base with many brokers, lenders, and mortgage companies, making connections and resources. I gave him the information for a mortgage company I knew in the area, and Chris asked them to send him any properties they heard about. Two weeks later, they called and told him they had found a property.
The Property
It was a 90 unit property in Downtown Houston. The broker who sent Chris the apartment had financed the property for years, so he felt motivated to help the seller before he went bankrupt or was forced to foreclose.
The Challenges
While doing his due diligence on the property, Chris discovered that sections of the building smelled like sewage and there was a severe roof leak. There were also some under-management issues that would need to be handled. He quickly began rehabbing.
The Opportunities
Once Chris and I got together and put together our EPartner Pro Forma together we discovered that the average market rents in the neighborhood were $200 higher than what the apartment was currently charging. Once you factor that into the pro forma we found that we could afford a $600,000 rehab, and still have this considered a very good deal.
Financing the Property
The property was selling for 3.1 million dollars. The owner was highly motivated and agreed to take interest only for a year on a million dollars. Chris tried to take the deal to the same mortgage broker that had brought him the property, but they would not finance him because he did not meet their loan criteria. We had anticipated this because the rehab needed was so great and approximately 1/3 of the 90 units were empty.
Chris then began spending eight hours a day for three or four days looking up hard money lenders until he finally found one willing to lend him the rest of the money (2.1 million for the property and 600,000 for renovations) at 13% interest.
Just to clarify, the purchase price was 3.1 million, the seller carried back a mortgage in the amount of 1 million and then you Chris found a hard money lender who paid the rest of the amount PLUS the rehab costs at 13 % interest.
Refinancing
After a year, the property was stable enough to get refinanced by a Fannie Mae lender out of California. It was a 30 year amortization loan with a 4.1 interest rate. The loan did not require any down payment money besides holding costs.
New Appraisal
At the time of the loan the property appraised at 3.8 millions dollars, but after a few months of full stabilization, it is currently appraised at 6.3 million dollars. This means that after closing costs and commissions, Chris could sell the property today and profit 2 million dollars.
Chris’s Next Step:
By April 2019 Chris wants to borrow against the property in order to purchase a new property. He is currently looking for properties off market in the local area.
Encouraging Words From Chris
“First you have to decide whether or not you have the knowledge and experience to get involved with one of the most difficult businesses out there that you would be owning and operating. I would encourage you to look for the very best mentor who will not only give you the information, but train you and stay with you very step if the way.I looked at nine or ten mentors and Peter Harris and his background, resume, and books, all spoke volumes to me. If you want to do this and you want the knowledge and you want to get the experience with someone at your side, go with Peter Harris. ”
Summary
Chris found a property through a mortgage broker that had huge potential if he was able to purchase it. He did not qualify for conventional financing so he went to a hard money lender who gave Chris money to acquire the property and conduct the rehab. Over the next 12 months Chris was able to finish up the rehab, stabilize the property, and refinance the property with a Fannie Mae Loan.
Once the property was completely stabilized it was worth 6.3 million dollars. So Chris bought it for 3.1 and now it’s worth 6.3 in little more than a year plus hard work If Chris were to sell today after paying the commissions and closing costs he would pocket over two million dollars in profits.
Good job Chris! You beginning is inspiring.
Fantastic for Chris. He has good Credit. He has the knowledge from accredited mentor – Peter Harris.
Chris: Great job. Your story made me wonder whether I could participate in the commercial R/E market. Your explanations were clear and thorough. Thank you for sharing your experience.
Chris, what a gratye job you did, But I do beleive THAT IF YOUR DREAM IS BIG ENOUGH THEN THE FACTS DONT COUNT.
Good job Chris
Chris,
Congratulations for the awesome work and sweat you put in on this project .
Honestly it paid off and I would like to be like you when I grow up the grace of GOD.
Great ‘Stick ot it’ fortitude Chris
This is a great example of how a property with problems offers opportunity. It would be scary doing this with the smelly sewers and patchy roofs. Congratulations for working through the problems for the win!
This is a great video! Highly encouraging!
This is very interesting, thanks for the advice and for the courage to start RE managment.
Wow!!! It was a great inspirational video for me to get out of 9 to 5 job.
Great going Chris, definitely sounds like a complicated process. Your steady hand and trust in Peter won the deal, with more to come. Awesome!
Thank you for sharing your experience with us Chris.
The first deal, one deal, and a new millionaire. The best is yet to come.
Well done, Chris, Peter is a wonderful mentor. I’m glad you took his course and now you can enjoy the benefits and produce even greater results. I’m sure this well help all your children and grandchildren immensely!
Great job Chris! Thanks for sharing.
Great job Chris. that was very inspirational ! Hope to do the same or similar some day soon. Not in the program yet.
Quite impressive!
Great video, Peter. Congratulations, Chris, on your deal. I hope your next deal is just as rewarding as the first.
Excellent job Chris. Real cool.
Great Job Chris !
This is so awesome. Congratulations Chris! Your testimonial is very motivating. It re-ignites the fire in me to began in real estate.
Congrats
That was awesome, congrats Chris and thank you Mr. Harris you have given me alot to reconsider.
outstanding review. most of all that was very truthful. that fired me up.
thank you Chris…
Awesome Chris!
Good job, Chris! Here’s to a great future!
Peter,
Great article. I come from a similar background as Chris and have been looking into your program, so I really enjoyed this one, Peter. Thank you
High 5 to ya Chris! Also congratulations to Peter…good system sir.
Congratulations Chris and Peter!!
This is a very interesting story. Thanks for sharing the information!
Thanks for sharing this wonderful story. Great job Chris and thanks a million Peter for your giving heart. I have learned a lot so far from your free book and video courses so far. I’m looking for my first deal right now. I’m really motivated and inspired. Keep up the great job.
Great, thank you for your story.
That was a good one , and would want to be doing likewise in the near future , Thanks !
Chris Congrats !!
Great job Chris and thank you for sharing your story!
Great job Chris and Peter. It shows us knowledge and hard work pays off. One day my story will be posted too. Until next time Peter.
I’m Always Encouraged. Be Blessed Peter & all Proteges’
Outstanding job Chris! You have proved what dedication and hard work can accomplish!
Great Job Chris
I enjoyed all I heard and it felt good just hearing the winner. with a desire.
I saw it a second time it was a wonderful story, thanks Chris, and much success on your next “BIG” Deal with Peter’s Real Estate Opportunity Program.
Awesome job Chris. I’m trying to buy my first property as well.
Great job
Great Job Chris, your story is very motivational! We all know Peter is the best mentor.
Wow Chris great job !!! Congratulations Thanks for the encouragement i hope to do likewise in the bear future. Good wishes on the rest of deals
Great job. Congrats Chris and kudos to Peter for great mentoring. I’d like to work with you Peter. I’ve always considered commercial real estate investment, having been a mortgage broker and a realtor before and I have a few properties. This video just rekindled my interest.
Your next step is to apply for my Protege Program
Hi five Chris!
I want to be like you
Big shout out to Chris, he’s actually where I’m craving to be for the longest. That’s personally encouraging news to me that there’s a way and Peter will be there to walked me through.
Great Job Chris !
HI Fives Chris I want to do a deal soon
Super transaction Cris and, apparently, great mentoring from Peter! We are interested in Peter’s system. Oliver
Awesome, what are requirements to starting in real estate?
Get educated. Review all the posts on this blog
Great Job!! Chris
Congrats Chris, and Peter. Great to hear the “war stories” of what was screwy about the property. Inspirational story.
Chris an Peter great job, thanks for sharing with us. It is very inspiring!!
I love it,learning open nothing but solutions
Awesome story! I learned so much. Thank you for posting it.
Hi Chris, Peter and Team,
Great story, exceptional achievement and fantastic approach!
Bigger deal, greater risk and what a perfect start!
Neelofer
Hello, Chris, good inspiring and encouragement words on the Apartment deal that you have done.
Well done Chris.
Fantastic job Chris. Well done!
Great job Chris.
You encouraged me to let me know I can surely do the same. Real Estate has been a goal of mine for many years. Mabe i was held off until such a time as this when I could have someone like Mr. Harris to be my one on one mentor so I wouldnt get ripped off by imitators or people with less experience. Great job Cris! Continue on and keep up the good work!
Very interested Peter. I’d like ti talk with you about mentoring me and buying commercial property.
Apply to my Protege Program
Well done.
I’m interested to know how much it would cost me to have you Peter Harris as a mentor? I have always wanted to get into commercial real estate. However, I am starting late in life. I am 76 years old, but I have been a real estate broker for 36 of those years selling commercial and residential properties. However, I am a believer that you can accomplish anything you want to and it does not matter what your age. I am enthusiastic and a very hard worker. It is very difficult to get me to change directions when I have my mind set to move forward.
Good job, Chris!
Awesome job Chris. Kudos to super mentor, Peter.
thanks for the encouraging article
GOOD JOB CHRIS!
I wish to purchase and rehab Commercial and Residential Property.
Please send info on how to get started
Thanks
The best place to get started is to complete this free video course: Commercial Real Estate Investing for Beginners