Mar 27, 2018
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
- Ran a “buy here, pay here” car lot when a guy walked in and said he had an 18-unit complex to sell
- After having multiple issues securing financing was told to meet with someone who gentleman and received 100% financing
- Had $500k in debt, sold it for $850k and netted $253k in profits
- Second seller saw him doing the work and offered to sell his property and paid the same price per unit
- Second deal had a setback issue that ended up costing $150k more than planned
- Focus market is Winston-Salem and Greensboro
- 11th year investing in real estate and has seen 4 peaks and valleys
- Sees big city investors coming into Winston-Salem
- Gets almost sidelined in a timeframe like this when properties that should sell for $15k/door start selling for $30k-$35k/door
- 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.
- Focus on Class C or D+ properties with high issues, runs his number backwards, like a flip property
- Cap rate determines value for the area based on what has been sold
- In Winston-Salem properties have sold at 2%-3% cap rate, and others that have sold at a 24% cap rate
- Look at Loopnet, CoStar or brokerage firm to help determine cap rate
- Cap Rate = Net Operating Income / Sales Price
- Most properties are in 7.5-9% cap rate
- Found opportunities in rural areas, 15 minutes from downtown, off MLK,
- Seeking an owner in distress or ready to exit
- Pulls police records, city complaints, housing authority from last two years and looks for patterns
- 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 in Winston-Salem:
Connect with Nathan:
Apartments.nathantabor.com
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