015: Repositioning Plays and Momentum Plays: The Two Types of Deals You Should Be Doing

I’m going to get real with you, invite you into my tribe, and talk about two types of deals that you should be doing. Before I get into the repositioning and momentum plays, I want to remind you to download my Quick Start Workshop and tell you a little bit about my upcoming offerings. Next month, I should be launching my Kahuna Boardroom. This is an exclusive course for those ready to take the next step into multifamily investing. The course will be based on what I call my six pillars. The Kahuna Cash Flow Calculator will also be coming out next month.

Topics on Today’s Episode:

  • Repositioning plays are where you buy a property and do a lot of work.
  • It may not cash flow well at the beginning.
  • Year three is where you hit the payday.
  • It takes a full year to fix up a property. You want to get multiple bids and keep occupancy up.
  • Once everything is cleaned up it is time to reposition the tenant base.
  • Present your model to investors in a conservative manner. Say it takes two years to get things up to speed. It’s ok if it gets done in a year, but don’t create big expectations.
  • My Kahuna Cash Flow Calculator will show you what a green light project looks like.
  • Momentum plays are buying operationally sound properties at a good price, and you don’t have to do a lot of work on them.
  • These cash flow right away. There is not a lot of risk, but there is also not a lot of profit.
  • Can I pay my investors and give them their money back? Can I pay my investors profit?
  • Model a conservative model on each and every deal.
  • Corey shares a story about a repositioning play that almost didn’t work.
  • Back funding to pay investors at the beginning of a repositioning play.
  • Value adds and taking the current state and making it better or repositioning to make more profit.
  • Deferred maintenance and bad management are what makes apartments bad.
  • Multifamily has enabled me to live a life beyond my dreams. You can do it too!

Links and Resources Mentioned:

Quotes:

“Be conservative when presenting to investors. It is always best to under promise and over deliver.” Corey Peterson

“When done right, you can make a crap ton of money with a repositioning play.” Corey Peterson

“Momentum properties start to cash flow from day one. You can pay your investors quarterlies from day one.” Corey Peterson

Don’t forget to download my Free Workshop Quickstart Video Series, and if you like what you have heard please leave a review on iTunes.

Text the word MONEY to 408-500-1127 to get my free private money program and credibility kit for single family.