Mar 3, 2017
John Griggs, with Presidium Group in Dallas, owns over 10,000 apartment units. He co-founded the company in 2002.
John and his business partner Cross Moceri, were unhappy lawyers in
California when they got bit by the real estate bug. They first
started buying, rehabbing, and selling single family homes and
four-plex’s in California. They wanted to expand, and after looking
into several markets throughout the country, John and Cross decided
on investing in Dallas. 1000 units eventually became 5000 units in
just a few years. Presidium stayed on the sidelines, during the
recession.
At first, Presidium started buying value added ‘C class’, now they
are building large new apartments in good areas and still buying
value added ‘B class.’
Tips: In a declining market, you don’t want to be the last guy to
change your rent structure. You want to meet the market. Don’t keep
your head in the sand; keep the building filled!
Keep your property clean with good maintenance during a down
turn.
Buy and renovating apartments still works in Texas. Make sure the
neighborhood can support the rent bumps after the rehab. Do your
homework.
Getting started in new apartment development was a very steep
learning curve. Mitigate your risk with having the best team
(bankers, general contractor, architects) on your side.
When buying a building, make sure that you raise more equity than
you need too, because you can always give it back to the investors
if you don’t need it. Don’t get caught short with capital at the
beginning. Contact John at JGriggs@presidiumre.com
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