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Real Estate Apartment Presentation

Discussion in 'Real Estate Investing' started by SteveO, Jan 15, 2008.

  1. SteveO
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    SteveO Legendary Contributor FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

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    My partner and I will be giving a presentation on apartment buildings this weekend in Mesa, AZ. I am posting it here for those locals that would like to attend.
    -----------------------------------------------------------------------------

    Below you will find the info for our Saturday, January 19th AZFIN Cashflow event in Mesa.

    We are having an amazing class. If you want to know about investing in apartments, this is a class that will blow the lid off your thinking. Our guest speaker/teacher is my friend Steve Olafson, and one of his partners, and he will share with you how he got out of the Rat Race and how he now owns over 700 apartment units (the combined total of his multiple apartment holdings). Here is what he has to say about what they will be teaching...

    Amazing Wealth through Apartment Investing
    Steve and Mike will present information on the amazing wealth that can be generated in the apartment world, how to get started, and how to succeed!
    Their presentation will include:
    • The myths about apartment investing
    • The opportunities
    • The investment process
    • The methods
    Through real life examples, they will explain the fundamentals of TIMING, LOCATION, ACQUISITION, OPERATIONS, AND DISPOSITION, and include tips on HIDDEN OPPORTUNITIES and HIDDEN PITFALLS!
    They’ll show you how they’ve made millions, and how you can too!
    About the presenters:
    Steve Olafson is a self-made millionaire investor who has been successfully investing in apartment properties for more than ten years. Steve started with a few thousand dollars he raised from credit cards and a small third mortgage on his home, and grew that investment into a fortune. His property portfolio has extended throughout the southwest from California to Arizona and east Texas. Steve has purchased, operated, and sold numerous apartment communities since 1998 with a Cumulative Value of $16,800,000 achieving a Profit of nearly $4,000,000. Steve’s current portfolio is valued at more than $33,000,000 and includes apartment communities in Phoenix, Scottsdale, Tucson, Corpus Christi and Houston.

    Michael and Delane Salkeld are co-owners of ParaWest Management, one of the largest apartment property management companies in the southwest. They have been individually and together actively involved in the management, acquisitions and dispositions of apartment properties for more than 27 years each. Since 1979 they have managed more than 40,000 apartments in varying locations including California, Nevada, Arizona, New Mexico, Texas, Kansas and Georgia. Clients have included individuals, partnerships and institutional owners including GMAC, Prudential, Equity Residential Apartment Trust, Lennar and others.

    Michael and Delane founded ParaWest Management in March of 2003, specializing in Apartment Property and Asset
    Management, and Acquisition and Disposition Consulting. ParaWest’s portfolio has grown as a result of superior bottom-line performance on its apartment communities which have seen immediate and decisive cash flow improvement upon takeover by ParaWest. ParaWest Management’s current portfolio encompasses properties valued at more than $200,000,000.

    This AZFIN Cashflow event is being held at the Living World Bible Church in their Fellowship Hall. We used to have meetings in the main foyer but it wasn't condusive for our speakers/teachers being able to deliver their classes in an uninterrupted manor without multiple distractions. The Fellowship Hall is designed for this purpose AND we have plenty of room to play Cashflow too. I'd really like to thank Scot Anderson and John Rhimnak for arranging our use of this facility.

    The address is 3520 E. Brown Road, Mesa, AZ 85213.

    Here is our agenda for January 19th...

    • 530pm – Doors open
    • 6pm – Introduction
    • 615pm – Steve will be teaching
    • 815pm – Break and Set up games
    • 830pm – Play Cashflow (you can play 101 or 202...your choice)
    • 10pm – Event is over

    Here is what we ask that you bring with you...

    • Please bring your Cashflow 101 and 202 game(s) with you if you have any.
    • Please bring snacks and/or drinks to share with at least 6 people. We all do this as a way to share and to keep anyone from shouldering the burden of suppling snacks and/or drinks for 80-120 people that usually attend our Cashflow events.
    • Please bring any friends, family, or associates that you can share the Cashflow game and our class with. Everybody attends for FREE!
    • Please bring a good pencil, calculator, and scratch paper for playing the game.
    • You will want to take notes when Steve speaks so be prepared!

    Our sponsors, co-hosts, and I are honored to serve you and we look forward to sharing this event with you.


    If you want to exit the Rat Race in 2008 and you feel that Real Estate Investing may be a vehicle for you to build wealth and reach your goals and dreams I have something very special to share with you. This email is long enough so instead of going into great detail I will give you a link where you can find out about an amazing opportunity to help you as a Real Estate Investor http://worldwidesuccessnetwork.blogspot.com/2008/01/amazing-awesome-fantastic-opportunity.html

    Sincerely, Kevin Sparks 602-622-1542
    Founder-Arizona Financial Intelligence Network
    Founder-World Wide Success Network
     
  2. andviv
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    andviv Gold Contributor Read Millionaire Fastlane FASTLANE INSIDER Speedway Pass Summit Attendee

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    I'm glad to see that you are back in the circuit as speaker. Too bad I am not close to make it to this event. Knock'em dead!!! oh, and also find a few more investors for the next deals ;) ;)

    Are you going to stay for the cashflow games event?
     
  3. SteveO
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    SteveO Legendary Contributor FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

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    I will stay to talk to people.

    Thanks Andres!
     
  4. andviv
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    andviv Gold Contributor Read Millionaire Fastlane FASTLANE INSIDER Speedway Pass Summit Attendee

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    so, how did it go? what was the general reaction from the participants?
     
  5. SteveO
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    SteveO Legendary Contributor FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

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    It would probably be more realistic if someone from the audiance answered. I did get a lot of contact information and a lot of people showed up. The general feedback that I received was positive.
     
  6. andviv
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    andviv Gold Contributor Read Millionaire Fastlane FASTLANE INSIDER Speedway Pass Summit Attendee

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    well, it seems nobody from the forum attended or wants to add comments or feedback. Too bad I couldn't make it. I think I will have to wait until our fastlane beer & pancakes event to hear you guys speak.
     
  7. imirza
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    imirza Contributor

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    Steve and his partner both made great speeches. It was very informative. I did not know a great deal about apartment investing prior to this but, I can say I bumped up my IQ points quite a bit.
    The slides on due diligence and how to find a good location to invest in were particularly good. Steve and Mike both broke down complicated concepts into layman terms which was an added plus. Overall the presentations were very enjoyable. Good job Steve !
     
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  8. SteveO
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    SteveO Legendary Contributor FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

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    Thanks Imirza,

    It was good to put a face to the name.

    Public speaking is not my thing. Apartment investing is though. I'm happy to have been able to help.

    The house appeared to be full!! Kevin has a great program going on there.
     
  9. CactusWren
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    CactusWren Contributor

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    It's too bad I did not see this thread before. I would have loved to come. I'm in Tucson so its not too hard to go. Please let me know if you have anything else planned.
     
  10. Bilgefisher
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    Bilgefisher Bronze Contributor Read Millionaire Fastlane

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    LOL for that, I think I would have driven down from Northern Colorado. Its only about a 18 hour drive or so. I am sorry I missed it. I am glad to hear that you are doing the Steve. Your information on this website alone has been inspirational.
     
  11. bigmako
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    bigmako New Contributor

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    What a shame!
    If only I saw this thread awhile back I would have loved to come! Even though I am in CA, I would not miss the next one if you have one.
    Thanks for the post!
     
  12. andviv
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    andviv Gold Contributor Read Millionaire Fastlane FASTLANE INSIDER Speedway Pass Summit Attendee

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    OK Steve, it seems it is time to put together your presentations in DVD so more people can enjoy your presentations (here comes the 'real' SteveO... I can assure though that MTV will not pick up your show unless you do something completely unexpected during the presentations :D)

    imirza, thanks a lot for your feedback.
     
  13. SteveO
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    SteveO Legendary Contributor FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

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    The information that Mike and I talked about was fairly general in nature. The main point that we tried to make is with how large the returns can be. It is not a difficult process. You only need to have an adequate process to make 50% annualized returns.

    The real key is to figure out this process and put it to work. All the information is out there with easy access. The difficult part is just getting started.
     
  14. Jill
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    Jill Silver Contributor Read Millionaire Fastlane FASTLANE INSIDER Speedway Pass Summit Attendee

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    Is it safe to assume that you would recommend dipping the toe with a SFH or small MFH prior to taking the plunge into apartments?
     
  15. JScott
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    JScott Legendary Contributor FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR

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    I can't speak for SteveO, but this question has been addressed in other threads, and I think the consensus is that there really is no need to start with SFHs. While you probably don't want to go too big on your first investment, there's no reason why you shouldn't be able to jump into a 8-20 unit property as your first major investment.

    In fact, in some ways, larger properties are *easier* than smaller properties, because they provide economies of scale that give you more cushion should you run into any surprises. For example, if you buy a SFH with $100/month cash flow, and then are surprised to find that you need to put on a new roof (for say, $2000), you've just cost yourself 20 months worth of cash flow. In a 20 unit property, where cash flow is $100 per unit per month (or $2000 per month), that same surprise might only cost you a single month's cash flow.

    So, the bigger property actually allows for a larger margin-of-error when purchasing it.

    Additionally, because of economies of scale, larger properties often give you the opportunity/income to farm out the management work to a property management company, leaving you more time to find your next deal. With smaller investments, you rarely have the cash flow to hire a management company, so you end up doing a lot more work yourself, which will ultimately cost you money down the road.

    So, don't be scared to jump into small- to mid-sized apartments (after doing your research, of course)...
     
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  16. andviv
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    andviv Gold Contributor Read Millionaire Fastlane FASTLANE INSIDER Speedway Pass Summit Attendee

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    Jill, this is a common misconception. Two main reasons are to 'blame':

    1. Lack of funds for downpayment: Higher purchase price and higher need of money for down payment scares people away from multi family deals. You can buy a SFH in many places in the country for $10K. You can't do that in normal multi's transactions.

    2. Lack of expertise/experience: It is fairly easy to understand the dynamics for SFHs, but multis are threatening at the begining. Once you start looking at the details, there are pretty much the same basic steps to buy many units than to buy 1.

    How to overcome this?

    I'm a follower of the SteveO's way. Partner your way into bigger deals. Put a lot of effort in identifying the right location/property and move forward. Although JScott's post makes a lot of sense (Rep++ JScott), I prefer to own 10% of a 100+ unit property than 100% of a 10-units one.
     
  17. Jill
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    Jill Silver Contributor Read Millionaire Fastlane FASTLANE INSIDER Speedway Pass Summit Attendee

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    Thanks for the great feedback guys. The $$ isn't the problem for me. While I don't have "plenty" of it, I do have around $300K that I'm pulling out of the securities markets over the next couple of months. Half of that is from an IRA, the other half, cash. I also have a little over $12K extra coming in each month from the "real job" that we don't need for "real life". If that's inappropriate to disclose so much publically, please let me know. I'm just trying to paint a clear picture of where I stand today in hopes (prayers?) that some of you with real experience can give me a few pointers.

    My real hesitation is that despite the thousands of pages of books and hundreds of hours of podcasts and trainings audios, I don't have any real hands-on experience. So I'm a little sheepish about diving in.

    Thanks again, from a REI and Fastlane newbie.
     
  18. hakrjak
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    hakrjak Bronze Contributor Read Millionaire Fastlane

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    One way to get experience without committing cash is to take a part time job as a property manager somewhere. Maybe even work front desk at an actual apartment complex.

    - Hakrjak:coffee:
     
  19. Jill
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    Jill Silver Contributor Read Millionaire Fastlane FASTLANE INSIDER Speedway Pass Summit Attendee

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    Thanks for the idea. But since I sell my time for $, I'm not sure that would be the best use of it. Perhaps a weekend or evening job? Then again, that's when I'm trying to do my research and property "shopping". I think you're onto a good idea, though. I need to somehow put myself in a position to learn the business in exchange for my time. Maybe help my realtor (who specializes in investment property) do research for opportunities?

    Thanks again for the idea.
     

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