Christopher Urso
Not every investor wants to blaze a trail… Let me clarify. You frequently hear me talk about taking massive action. But this doesn’t need to mean getting down and dirty.
Multifamily investing is fundamentals-based investing. My real estate investment business, URS Capital Partners, is modeled after what other successful real estate investment companies have done.
This is not the only route to freedom through your multifamily investments.
Mary and George’s Story
Mary and George
Mary and George came to our Multifamily Investor Conference with a specific desire. They didn’t want to establish a real estate investment company from the ground up.
Identifying markets, sourcing deals and talking to brokers did not interest them, although they saw the tremendous benefits of owning an apartment building.
George and Mary both had worked hard and done very well in their professions. George has a successful long-term business, but as an artist, it was not a business that could continue to run without him (or at least without his hands). What they wanted was assets for their future for when George put down the paintbrush.
I’m sure you’ve heard the term “value add.” Maybe you get a mental picture of an apartment unit down to the studs, and heavy construction equipment…
George and Mary did NOT want a gritty, value add deal, but a steady, clean, stabilized deal that would spin off cash flow and create equity by paying down the mortgage.
For some apartment deals, the value add component can be operational, as opposed to physical.
Through another client, they were able to provide the equity needed to close the deal, while a more active client ran the day-to-day operations, part of the beauty of surrounding yourself with a great team of like-minded investors.
The couple was able to provide the equity needed to close the deal, while a more active client ran the day-to-day operations, part of the beauty of surrounding yourself with a great team of like-minded investors.
Here are the apartment deal details:
- Property Name: Amhurst Apartments
- Location: Erlanger, KY
- Type of Deal: Stabilized
- Purchase Price: $1,760,000
- Number of Units: 62
- Excellent Location and Attractive Financing
In their first full year of operation, their cash-on-cash return was $66,231 (33% above budget) and they paid down $42,949 in principal.
That results in a 14.3% cash-on-cash return on investment ($463,000 investment), plus over 9% return via principal paydown.
I hope that this opens your eyes up to thinking bigger – and that not all apartment deals are created equal. I truly believe that there is a deal out there that suits your unique criteria.
As a thank-you to Personal Real Estate Investor Magazine readers, we’d like to send you the Smart Investors Guide To Buying An Apartment Building. We put this guide together to answer your questions about investing in apartments. Click here for instant access!
About the author:
Christopher Urso is an investor, author and private real estate coach. His real estate investment company, URS Capital Partners, currently controls over $55 million worth of apartments throughout the Midwest and Southeast and has raised over $18 million in private money. He has been featured as a Master Investor on the cover Personal Real Estate Investor Magazine.
In 2011, alongside his wife, Lisa, Chris created his coaching program, Elite Apartment Coaching, with a mission to help private real estate investors play a bigger game and create true wealth with the power of apartments.
In the last three years, his coaching program has helped his clients purchase more than $55 million worth of real estate in 10 states. Through his Elite Apartment Coaching Program, Chris is able to truly change the lives of his clients and guide them to their financial goals. Throughout the year Chris leads the dynamic three-day Multifamily Investor Conference that allows both novice and seasoned real estate investors the opportunity to learn the entire multifamily investing process.
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