What's going on guys. This is Matt Faircloth, and I'm here at a complex in Winston Salem,
North Carolina, that my company just put under contract. This is a 336 unit apartment complex.
And I'm really excited to tell you guys how we found it, because I want to give you guys
tips, three tips for that matter on how to find deals. We follow these tips on finding
this deal. And I want you to give you guys some tips so you can find big deals like this
one or small deals too. You can use what I'm going to tell you on how to find single family
homes or larger apartment complexes. So here we go.
Tip number one, choose a market. If you tell me, "I just want to invest in real estate
Matt," or, "I just want to buy a hundred unit apartment complex. It doesn't matter where
it is." You're going to get a full, mixed bag of all kinds of different things. And
you're not really going to be able to evaluate the deal. You need to choose a market.
Here's some ideas for finding a market. Tip one is choosing a market and here are some
factors you need to consider. Who are the employers in a market? I can tell you here
in Winston Salem, the employers are Wake Forest University, Hanes Underwear, believe it or
not it's headquartered here. Krispy Kreme Donuts. The hospital is an enormous employer
here in town. And there's many other small manufacturing operations that employ here
in Winston Salem.
We've researched this. So find out who the job providers are. Look at where the market's
going. This market has increased in population and jobs for the last 10 years. So look for
markets that are showing signs of going in the right direction. Those are some other
market factors. Obviously markets where you think that you know where things are going.
We have strong roots in North Carolina and market knowledge of this place. If you're
looking at a market that you have no knowledge, really dig in, find out why, whatever it is.
Albuquerque, New Mexico is a great place to invest. Don't just start looking there. Find
out really the data on why that market's amazing.
And that leads me to tip number two. Tip number two, once you've chosen the market and let's
say that's Philadelphia or Albuquerque, whatever it is, drill in and research the data. What's
the average rent in Kissimmee, Florida? What's the average home sales price in Philadelphia?
And Philadelphia is a bigger city so your market demographics that you do might drill
down into be specific areas of the city and that'll help you find out different pockets
you want to consider investing in.
Other data points you guys you want to find, what has been the growth rates for the city?
Other data points, like I said, rent, what is a one bedroom, a two bedroom rent for?
Just really collect as much data as you can. And that data analysis is just going to go
into just helping you determine why the market's awesome. But also once you find a deal, the
data that you have is going to help you evaluate that deal.
And considering this property, the average rent for a one bedroom, if this property right
now that we're buying is $550. Let's consider that for a minute. We happen to know because
we've done our data research that this property should be yielding somewhere around $700 for
one bedroom apartment. Why is that? Now we see the unit conditions aren't very nice.
The unit finishes aren't there. There's not really many amenities in the complex and just,
they don't really keep it up very well. So with some better investment, this property
should yield $700.
Once I've done the data research and know what the market should yield for units in
a nice condition with nice amenities, I'll know what rents the properties should be able
to yield. That's all there through data analysis.
Then that leads me to step three. Step three, that you need to do in finding great deals
is you've got to drill in and network in a market. Now, once you've chosen your market,
Kissimmee, Florida, you've done all your data analysis for rentals and for home sales and
for jobs and for demographics and everything that you need to go. You've got all your data
package. Now you've got to build your network. Well, if you find a deal right now in a market
that you love, who's going to manage it for you?
Let's go find a property manager. Answer that question now. Answer to the question of what
brokers are really, really present in the market and who's selling, who's buying, who
are big owners in markets that you guys are looking for? Maybe you should network with
them and find out if they're looking to sell anything, find out who their resources are,
who their vendors are. Find out attorneys and closing companies and title companies.
You don't want to be finding these folks all when you've got to deal under contract. It'd
be great if you had these folks lined up. Once you pick the market, build your network
in that market so that when you find a deal, you can go and tap that network and pull them
in to help you with the deal you already have lined up.
Those are your three tips for finding deals. I'll sum them up again. Pick your market and
be smart about it and pick a market that you think has good fundamentals that's going to
work for your investment goals. Number two, collect lots of data. The more data, the better.
And number three, build your network deep.
We did that here. We chose Winston Salem as a market. We've been shopping here for over
a year. We've done lots of data research on the market of Winston Salem. We've been monitoring
this market for a long time. We've been networking with brokers and property managers and everyone
that do business in this town. And when we put this property under contract, we had a
lot of that lined up that we can put it to work in this property.
If you guys are an accredited investor, if you want to consider hearing more about this
deal with us, we are looking for accredited investors to come join us on the journey of
bringing this property around and making it awesome, bringing it up to the caliber of
the market that it's in and making it a phenomenal home for people, that's something that we
are proud of, and that they're proud of too.
So if you want to join us on this, and you're an accredited investor, click on the link
below, and you'll get more data on how to take the next steps to consider that investment
with us. Thank you for watching guys and have a great, profitable week.