Apr 27, 2017
Kenny purchased his first out-of-state property in 2014. Kenny
initially started buying apartments in Texas and then he bought in
Colorado, Oklahoma and Ohio. Kenny’s philosophy is have “real
estate and will travel.” He likes to buy in landlord friendly
states that contain diverse economic drivers for growth, low
unemployment, and historical population growth. Kenny explains the
challenges of living in Dallas, but owning apartments in different
states. He actually visits his properties out of state more
frequently than the ones he owns in his immediate area. Everyone
believes that proformas and partnerships work in straight lines,
but Kenny believes in being flexible to handle ‘operational curve
balls’ as one of his keys to his success.
Kenny chats about his latest acquisition in Waco, Texas. Kenny bought this property because of its location near Baylor University. It was 50% occupied and needed lots of rehab…but its spectacular location made it a great opportunity. The seller could not provide historical financials to the property. Typical bank financing was not available because of lack of financials and low occupancy on the asset. Kenny had to be creative on how he was going to finance the acquisition and rehab of the property. He discusses the strategy of using ‘hard money’ as a tool. Hard money can be an option when an ‘’all cash” purchase is not available. It’s a short term solution and can help you acquire more assets.
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Are you interested in learning more about how Multifamily Syndications work? Please visit www.spiadvisory.com to learn about Michael's Real Estate Syndication business with SPI Advisory LLC.