Please reload

Recent Posts

How to Produce Life-Changing Content with Seth Williams, Episode 133

October 25, 2019

1/7
Please reload

Featured Posts

Due Diligence Tips for Buying Apartments with Nathan Tabor, Episode 39

March 27, 2018

 

Nathan Tabor has operated more than two-dozen businesses since 1999, grossing over $150 million in sales. He was introduced to real estate when a man came to his used car lot with a building he needed to sell. Since then Nathan has successfully flipped 26 properties in 9 years, grossing over $52 million in sales and has consulted on deals worth over $200 million. He’s had amazing successes and epic failures, and is the author of How to find, finance, fix and flip apartments. Today, he shares his take on the Winston-Salem market and his best due diligence tips when acquiring apartments.

 

 

Key Market Insights

  • Ran a “buy here, pay here” car lot when a guy walked in and said he had an 18-unit complex to sell

  • After having multiple issues securing financing was told to meet with someone who gentleman and received 100% financing

  • Had $500k in debt, sold it for $850k and netted $253k in profits

  • Second seller saw him doing the work and offered to sell his property and paid the same price per unit

  • Second deal had a setback issue that ended up costing $150k more than planned

  • Focus market is Winston-Salem and Greensboro

  • 11th year investing in real estate and has seen 4 peaks and valleys

  • Sees big city investors coming into Winston-Salem

  • Gets almost sidelined in a timeframe like this when properties that should sell for $15k/door start selling for $30k-$35k/door

  • If market is maxed out at $900/mo for rent, you’re not getting more than that no matter what you do to the unit.

  • Focus on Class C or D+ properties with high issues, runs his number backwards, like a flip property

  • Cap rate determines value for the area based on what has been sold

  • In Winston-Salem properties have sold at 2%-3% cap rate, and others that have sold at a 24% cap rate

  • Look at Loopnet, CoStar or brokerage firm to help determine cap rate

  • Cap Rate = Net Operating Income / Sales Price

  • Most properties are in 7.5-9% cap rate

  • Found opportunities in rural areas, 15 minutes from downtown, off MLK,

  • Seeking an owner in distress or ready to exit

  • Pulls police records, city complaints, housing authority from last two years and looks for patterns

  • 80% of people don’t have a business plan for their business


Bull’s Eye Tips:

Winning Your Market: The answer is no until you ask


Tracking Market Changes: Educate – read, talk to building inspectors and leverage a team
 

Daily Habit: Reads Proverbs daily

 

Resources:

How to Find, Finance, Fix and Flip Apartments by Nathan Tabor 


Best Business Books:

21 Irrefutable Laws of Leadership by John Maxwell 

 

Digital Resources

Loan Calculator Pro 

 

Tweet This:

"Business is simply how much you can make versus how much you can lose"

 

"You can not rely on someone else’s information – go direct and ask the source"

 

"You make your money whether you hold it or flip it"

 

"Rent rolls are worth nothing, get bank statements"

 

 

Places to Grab a Bite:

Prissy Polly’s 

Clark’s BBQ

 

Connect with Nathan:

Apartments.nathantabor.com

 

Check Out Our Partners:

Midwest Real Estate Networking Summit
 

Best Ever Show 

 

Leave us a review and rating on iTunes or Stitcher. Be sure to check out more info at TargetMarketInsights.com.

 

 

Share on Facebook
Share on Twitter
Please reload

Please reload

Archive

BLOG

© 2019 Casmon Capital Group

  • Facebook - Black Circle
  • Twitter - Black Circle