No Sampling when Doing Due Diligence - Williams Edwards

You enter a deal and the underwriting reveals that there is too much expense allocation for the property topped with bandaid fixes to solve… What happens then? Williams Edwards shares this noteworthy experience that ended up with reduced expenses, replaced property management team, and even lower tax burden. He also highlights the value of consultancy for better tax benefits. Listen as he shares his story of starting from the ground up and now investing in 5000 units.

[00:01 - 04:29] Opening Segment 

• Williams Edwards on the W-2, the software systems, then to real estate
• When multifamily ticks all the boxes as a GP and a KP

[04:30 - 12:21] The Dangers of Overlooked Bandaid Fixes

• Going for a 37-unit instead of a 100-unit…why?
• The perks of operating with your own money
• When the maintenance only go for bandaid fixes without replacement

[12:22 - 21:44] Steps to Take for Better Positioning

• Undertaking the steps to vetting the property managers
• When the underwriting reveals too much expense allocation
• Considering loans, interest rates, and tax valuation for better positioning

[21:45 - 24:49] Closing Segment

• Do your best and follow your heart
• Final words

Tweetable Quotes:

“A lot of people who come into the space think, ‘Oh, it's gonna work from day one, like it's new, out of the box.’ And that's just not the case. ” - Jerome Myers

“You don't really know what you got out of the gate, you know? Just do your best job. Follow your heart.” - Williams Edwards

Learn more about Myers Methods of Multifamily Investing: http://bit.ly/37u6oK3

Register for Myers Methods Multifamily Investing Course: https://bit.ly/37iozkB

Learn more about the Mid-Atlantic Multifamily Conference: https://bit.ly/2V7SlCC

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