How to Flip an Apartment in Half the Time it Takes a Single Family Home

Today, I am going to go over a deal a student who purchased my flipping property course. She and I did a deal on a 9 unit apartment complex around the first of the year. This student purchased the flipping real estate course in October. It took her about 1 year to complete her first deal. She was doing the things I told her to do in the training, of course she has a career I think a lot of it had to do with that.
She asked me to assist her and I was available to do it. We decided we would split the deal if I was able to bring a buyer to the table.

Instead of getting a call on house flip since all her signs read “We buy houses” she received a call from a gentlemen who owned a 9 unit apartment complex.
I had recently started studying up on commercial property so I was familiar with the process and what to look for to determine whether the property was a good deal or not.

Interestingly enough, this property was in an area where it has been in the past difficult for me to flip houses in.

As i always say, it’s all about perception because all in all, the neighborhoods I do deal in are very much the same as far as crime or war-zone or not, type of income, age of houses…etc.
Yet and still, my buyers are usually hesitant to buy in this particular area and I can’t control how they spend their investment dollars.

I was not really excited about the deal, but the guy gave her a price that made sense from the information that I learned from the commercial flipping property course I was trained on.
The actual owner had built the 9 year apartment complex from the ground up about 30 years previously and he had managed the property pretty much all those years.
The property was ok but was not located in the best part of town. We decided to put it under contract to see what would happen. We placed the property under contract and placed an ad in the newspaper and believe it or not my phone started blowing up from calls regarding this property.
I picked up one real estate investing tip from this experience, apartments are viewed differently especially when you are talking about this 9 unit complex and 6 of them were already rented. I received calls from a couple of serious buyers that wanted to see the property. One of the buyers wanted to meet the owner because they wanted to see the empty apartments to see what they were going to be dealing with.

The day I was going to meet them two other guys called interested in the property also and it was a couple of hours before I was supposed to meet with the seller at the property.

Interesting enough, all of us met at the same time, the seller, the guy that called the day before, and the buyer that called 2 hours before we were supposed to meet. Those two buyers also knew each other. I told the seller that I had buyers or other investors that I deal with, he did not have a problem with that. The way the story got interesting is we had the property under contract for $70,000 and we were marketing the property for $95,000 and the guy that called the day before placed an offer of $80,000 on the spot for the property. The other guy did not give me an idea of what he would buy the property for.
The first set of buyers and I left but the second set up buyers and the owner stayed. What I found out later is that the seller disclosed what I had the property under contract for, this rarely happens but it did happen in this instance.

To Make a long story short ended up only wholesaling the property for $5,000 of what we had the contract for.

My student and I split those funds. The moral of the story is apartments are a lot easier than moving houses so if you ever come across one whether rented or not rented if the price is justified they will move very, very easily compared to houses just because supply and demand there is just not as many apartments as there are single family houses.

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