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
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Ran a “buy here, pay here” car lot when a guy walked in and said he had an 18-unit complex to sell
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After having multiple issues securing financing was told to meet with someone who gentleman and received 100% financing
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Had $500k in debt, sold it for $850k and netted $253k in profits
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Second seller saw him doing the work and offered to sell his property and paid the same price per unit
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Second deal had a setback issue that ended up costing $150k more than planned
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Focus market is Winston-Salem and Greensboro
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11th year investing in real estate and has seen 4 peaks and valleys
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Sees big city investors coming into Winston-Salem
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Gets almost sidelined in a timeframe like this when properties that should sell for $15k/door start selling for $30k-$35k/door
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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.
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Focus on Class C or D+ properties with high issues, runs his number backwards, like a flip property
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Cap rate determines value for the area based on what has been sold
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In Winston-Salem properties have sold at 2%-3% cap rate, and others that have sold at a 24% cap rate
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Look at Loopnet, CoStar or brokerage firm to help determine cap rate
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Cap Rate = Net Operating Income / Sales Price
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Most properties are in 7.5-9% cap rate
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Found opportunities in rural areas, 15 minutes from downtown, off MLK,
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Seeking an owner in distress or ready to exit
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Pulls police records, city complaints, housing authority from last two years and looks for patterns
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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
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:
Connect with Nathan:
Check Out Our Partners:
Midwest Real Estate Networking Summit
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