School Teacher Becomes Multifamily Investor

Discover how Jake, a school teacher, and his wife Yessi, became successful multifamily investors in just 8 months using our proven strategies, creating $4,000 a month in cash flow and a property value increase of $223,000!

 

From School Teacher to Multifamily Investor

In today’s economy, more people are looking for ways to supplement their income and secure their financial future and our students Jake and Yessi are no exception. Like many other teachers in America, Jake realized his salary alone would not provide him and his wife Yessi with financial stability. Initially, their focus was on single-family homes, but as they delved deeper into the real estate world, they discovered the immense potential of multifamily properties. Jake and Yessi quickly realized the advantages of having multiple units under one roof and the long-term benefits it could bring. Although their limited income was a challenge, they became successful multifamily investors. How did they do it? Let’s dive into their inspiring story and explore the key strategies they learned and implemented to buy their first multifamily investment.

Start Small

One of the key strategies adopted by Jake and Yessi was to start small. They understood that taking smaller steps initially would allow them to learn and grow at a comfortable pace. Prior to purchasing their 7-unit building, they moved out of their single-family home into a duplex. They had learned about “house hacking”, whereby you can save money by having tenants help pay your mortgage. So they found a nice duplex in the area and started living there while they rented out the other unit and their single-family home. This approach provided a solid starting point for investing in commercial real estate.

Leverage Existing Assets

When Jake and Yessi joined our Protege Program, they didn’t think they had enough money to fund a commercial deal. However, we were able to show them how they could maximize their current financial position by leveraging their single-family rental. And by starting with a 7-unit commercial property, they were able fund the deal, along with a little help from one investor. As Warren Buffet once said, “I don’t look to jump over 7-foot bars: I look around for 1-foot bars that I can step over.” We couldn’t agree more; this 7-unit was an ideal stepping stone for Jake and Yessi, giving them valuable experience and establishing a strong foundation for future growth.

Mentorship

While starting small provided Jake and Yessi with a solid starting point, it was their decision to seek guidance from an experienced mentor that truly fast-tracked their success. They recognized that tapping into the knowledge and experience of our coaches would accelerate their learning curve and keep them from making costly mistakes. Here’s what Jake had to say about seeking mentorship,

Find Off-Market Deals

One common challenge faced by many real estate investors is finding good deals in highly competitive markets. However, Jake and Yessi had a competitive advantage over traditional investors because we taught them how to find off-market deals. By finding an off-market multifamily property, they were able to work directly with the seller and negotiate a purchase price of $550,000.

Optimize the Property

One of the standout features of this deal were the “hidden opportunities” that the seller overlooked. When they purchased the building it had about 2000 square feet of storage space on the lower level and an open “office space” in the middle that was unused. We were able see a hidden opportunity in this unused space and mapped out a value-add plan to convert it into an apartment unit that they are now renting for $1,300/month. This strategic move not only increased their monthly cash flow to $4,100 a month but also significantly boosted the value of the property itself. With an investment of only $17,000, this conversion project increased the equity in their property by $223,000!

Here’s how we calculated the forced appreciation:

• The new unit is renting for $1,300/month
• 1,300 x 12 months = $15,600
• $15,600 divided by 7% cap rate = $223,000

How did Jake and Yessi achieve this success with just 8 months of coaching? Well, as their mentors, our focus for over twenty years has been value-add commercial deals. We know how to capitalize on opportunities others overlook and maximize the upside potential of any commercial property.

Long-Term Vision

As Jake and Yessi look towards the future, they have set their sights on expanding their multifamily investment portfolio. Their long-term plan is to leverage the power of cash-out refinancing and the equity generated from their current property to acquire larger multifamily properties. By starting small, and tapping into the expertise of our mentors to find off-market deals and maximize property potential, they were able to transform a modest teacher salary into $4,100/m cashflow and $223,00 forced appreciation – in just 8 months! Their story proves that with the right mindset and strategy, anyone can achieve financial success investing in multifamily real estate.

Every Successful Commercial Real Estate Hacker Has a Mentor

Every successful commercial real estate investor has a mentor. Get your mentor here:  Commercial Property Advisors Protege Program

If you have any questions, post a comment below or text PETER to 833-942-4516.