12-Unit BRRRR Method Case Study [Beginner Guide]
youtu.be
In this YouTube video, real estate investor Sam Pram shares his experience in buying and flipping a 12-unit apartment complex without using any of his own money. He found the complex listed on the MLS for $725,000, negotiated it down to $682,000, and secured an 80% loan from the bank for $545,000. He borrowed the remaining $135,000 from a private lender named Steve and used the money to make a 20% down payment and improve the building. Sam and his team improved the exterior of the building, resurfaced and re-striped the parking lot, and put up a fence to prevent people from walking through it. They also leveraged technology to offer tenants online payment options and streamline maintenance requests. Sam gradually raised rents on existing tenants and raised rents to market rate for new tenants. Over the next three years, he spent the borrowed money on repairs and improvements to the building, paying back the private lender out of the cash flow. The building increased in value, allowing for a successful refinance. Sam explains that the value of multi-family properties is based on the net income it produces and shares his experience with refinancing the 12-unit apartment complex, which almost doubled in value in three years. He was able to pocket $170,000 of tax-free money by refinancing with a small local bank and shares his plan for the cash. Sam concludes by directing viewers to his videos on finding private lenders.
In this YouTube video, real estate investor Sam Pram shares his experience in buying and flipping a