This month we are excited to present our partners in distressed
multi-family acquisitions, Mike Ballard and Mike Matysik:
Mike Ballard has extensive financial, managerial and executive experience from his 15 year corporate career as a CFO and CEO of several successful companies that he either founded or purchased, and in some cases, sold. For the last 7 years, he has been an active real estate investor and has been involved in the purchase and renovation of over 20 financially stressed, single family residences which were subsequently sold for a profit. Mike Ballard then moved on to buying apartment buildings in the southeastern United States where he now owns and/or operates over 1,000 units in the Southeastern U.S., which are performing admirably for their investors. Mike Ballard and some of his deals have been highlighted in the New York Times (http://www.nytimes.com/2005/08/07/business/yourmoney/07foreclose.html?_r=1), Seattle Times (http://www.seattletimes.nwsource.com/html/realestate/2003249828_foreclosures10.html?syndication=rss), and Forbes.com (http://www.forbes.com/2007/11/15/foreclosure-investing-banks-pf-ii-in_jl_1115realestate_inl.html).
Mike Matysik has nearly 30 years of professional business experience, Mike Natysik has been a part-time real estate investor for over five years, with investments in commercial, multi-family and single-family properties. Since becoming a principal in Broadview during the first half of 2011, Mike has helped structure and finance multiple properties, consisting of over 800 combined units. In addition, Mike has invested in other properties under management by Broadview’s sister company, Broadview Management, LLC and is actively involved in the day to day activities of all properties under management by Broadview Management, LLC, consisting of over 1,000 units.
These guys have a very impressive track record of buying buildings with fixable problems at steep discounts. They were able to purchase one building that we partnered with them on that will have a conservative After Remodeled Value of approximately $2,000,000 for only $750,000. After the property is repositioned and stabilized, the plan is to refinance it and return all or at least the major portion of the investor's capital, leaving them in the deal with little or none of their original investment. As you might imagine, the projected ROI is off the charts. Here's how they explain why they favor this approach:
"In previous years, a strategy of acquiring properties with acceptable operating performance coupled with a more favorable lending environment meant that we could put a property under contract, accumulate the required equity, arrange the bank financing and buy the asset. This method required the raising of approximately 35% to 50% of the actual purchase price of the asset for down payment and capital improvements.
In the current environment, however, our preferred acquisition strategy is to identify financially distressed assets – properties that banks will not typically lend against at the time of acquisition. This reduces the cost of acquisition by, among other things, reducing the competition for such assets. This strategy necessitates a full cash purchase and the raising of approximately 125% of the actual purchase price of the asset for acquisition and capital improvements. Often, these assets are not only under market value but are also mismanaged, allowing for greater upside potential. Through the expertise of our property management company, we quickly stabilize and begin to improve these properties, bringing them to financeable condition. We generally expect to obtain long-term financing on the properties within 12 to 18 months, returning a significant portion of investors' capital."
Some of you may be wondering why we are featuring two multi-family speakers in a row; why all of the sudden interest in multi-family. Well first of all, we are not giving up on buying houses to flip - this is our bread and butter; why we show up for work each day. Flipping houses has been very good for us and we continue to knock them out one by one. It's just that we're looking for long-term passive income so we can retire someday. Just one of these apartment buildings bought right can provide a monthly cash flow of over $10,000! The key is to buy them right and in the right locations. So we added a multi-family department and we're cranking that up. We're picking who we believe are the best mentors in this field to learn from and work with and we're inviting you to take a look at this opportunity with us. Hang on for the ride to passive income!
We're growing! Thanks to your support, we outgrew our former space and we have moved to a new location that will accommodate our growing group. However, to cover the higher rent, we have started charging a modest admission fee.
In April the fee to attend our meetings started at $10 prepaid or $15 at the door. We will continue to present speakers who offer valuable and timely information to the real estate investment community. We will continue to provide:
* Networking Opportunities
* Open Mic Time
* Opportunity To Display Your Marketing Materials
* Actual Bay Area Case Studies
* Speakers on Timely Topics
* Copies of Our Presentations
* And Much More!
Agenda for these meetings:
1. Introductions and open mic time (please bring your flyers, cards or other promotional materials. Please limit your mic time to 60 seconds or less. If you would need more time, please contact the promoters to schedule your presentation.)
2. Topic 1 - Case Study. Designed to give beginning and prospective Rehabbers information on how to succeed in finding, analyzing, fixing and selling Bay Area houses.
3. Topic 2 - Private Money Lending/Partnering. Designed to give Private Money Investors and/or prospective Private Money Investors valuable information on the process of lending money to or partnering with rehabbers and to give rehabbers the opportunity to meet those with money to invest.
4. Guest Speaker Presentation
My partner Dean and I buy UGLY houses for pennies on the dollar, remodel them beautifully and sell them for top dollar. We call ourselves “The UGLY House Magicians” and I’m sure you would agree that it does take a little magic (and a lot of hard work) to locate these bargains and turn them around in such a short time. We will explain more about what we do and why trust deed lending makes good sense in today’s market.
Seating is limited so reserve your spot right away.
Where: Embassy Suites Santa Clara - The Delegate Room:
2885 Lakeside Drive, Santa Clara, CA
When: Every 2nd Thursday of the month at 7:00 p.m.