2018 - a tough year but two apartment building purchases in Alberta for 68 doors

CorySperle

Senior Forum Member
REIN Member
Sep 1, 2010
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Edmonton
#1
Greetings all, I was inspired this morning to share some success this year with the group, and although a very tough year personally it seems to be ending on a good note. About a year ago my 11 year old son became ill with a life threatening infection, and after many stints in hospital, three surgeries, and a dozen medical images he is still fighting it and not giving up. Although I have missed several months of work, he is my inspiration to push forward.

Since 2008 I have purchased 9 apartment buildings, 7 of which were with partners. Almost exactly a year ago I went after a stale MLS listing thinking it would go nowhere, 48 units that was 50% vacant and needing a TON of work. For the next 3 months I worked at this deal, locking it up under contract, viewing, consulting, and raising capital for the purchase. Many bumps were encountered with diligence, my JV partners, and many other 'surprises'. After two failed JV arrangements (one last minute) I got a break with the third, a very experienced owner and struck the perfect partnership. I managed to successfully negotiate the purchase down to only 63K a door and get an over 90% VTB. Fast forward 8 months and the property purchased at 3M has just been refinanced for almost 5.4M, thanks to my experienced partner who knew how to turn such a building that quickly, although far from easy to accomplish.

The second deal was a 20 suiter purchased in August 2018. This was a listing previously tied up that came available and the vendor was motivated. I was able to secure the property, view, and negotiate a large reduction for an excellent project that had some management issues and was 25% vacant. At the same time my son's health deteriorated and we ended up in hospital in Vancouver and I was unable to raise capital as quickly as I had before. Thankfully another excellent partner came along and together we were able to salvage the deal. The project was purchased for 87.5K a door, and appraised at 100K a unit. It took only two months to fill the property with our stellar management and we are well on our way to a successful purchase.

It has been said that many get analysis paralysis and wait for all the lights to be green before proceeding. In my experience, good deals have come at the most inopportune times with all red lights and a glimmer of green at the end. If I can say anything of this it is to be awake and ready when those rare opportunities present themselves and look for your why to push forward, as you won't regret that you did. I have truly never had a year as challenging as this one, and looking back wonder how I did not break mentally but most importantly my son is recovering and real estate has enabled me to be there for him during this past year, and I really can't ask for anything else. For everyone keep scouring the earth for deals, they are there and I always like to hear from this group and help in any way I can.
 

Tina Myrvang

Client Care Lead
Staff member
REIN Member
Nov 15, 2010
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#2
Wow Cory, sorry to hear about your son, but agreed, it's motivation. Congrats on your stellar year. Lesson to be learned here.

I like your saying "good deals have come at the most inopportune times with all red lights and a glimmer of green at the end" very inspiring.
 

TangoWhiskey

Frequent Forum Member
Registered
Aug 26, 2010
359
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#4
Great to see wins both professionally and personally with your son (so far, I cross my fingers for him and you and your family). My son beat an aggressive leukemia that lasted three years - he was diagnosed on Xmas Eve of all nights - 60 hospital nights in the first year - so I greatly hope your little guy does well. Like his dad :)
 
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KhoaN

Inspired Forum Member
REIN Member
Oct 22, 2012
73
21
8
Alberta
#6
Greetings all, I was inspired this morning to share some success this year with the group, and although a very tough year personally it seems to be ending on a good note. About a year ago my 11 year old son became ill with a life threatening infection, and after many stints in hospital, three surgeries, and a dozen medical images he is still fighting it and not giving up. Although I have missed several months of work, he is my inspiration to push forward.

Since 2008 I have purchased 9 apartment buildings, 7 of which were with partners. Almost exactly a year ago I went after a stale MLS listing thinking it would go nowhere, 48 units that was 50% vacant and needing a TON of work. For the next 3 months I worked at this deal, locking it up under contract, viewing, consulting, and raising capital for the purchase. Many bumps were encountered with diligence, my JV partners, and many other 'surprises'. After two failed JV arrangements (one last minute) I got a break with the third, a very experienced owner and struck the perfect partnership. I managed to successfully negotiate the purchase down to only 63K a door and get an over 90% VTB. Fast forward 8 months and the property purchased at 3M has just been refinanced for almost 5.4M, thanks to my experienced partner who knew how to turn such a building that quickly, although far from easy to accomplish.

The second deal was a 20 suiter purchased in August 2018. This was a listing previously tied up that came available and the vendor was motivated. I was able to secure the property, view, and negotiate a large reduction for an excellent project that had some management issues and was 25% vacant. At the same time my son's health deteriorated and we ended up in hospital in Vancouver and I was unable to raise capital as quickly as I had before. Thankfully another excellent partner came along and together we were able to salvage the deal. The project was purchased for 87.5K a door, and appraised at 100K a unit. It took only two months to fill the property with our stellar management and we are well on our way to a successful purchase.

It has been said that many get analysis paralysis and wait for all the lights to be green before proceeding. In my experience, good deals have come at the most inopportune times with all red lights and a glimmer of green at the end. If I can say anything of this it is to be awake and ready when those rare opportunities present themselves and look for your why to push forward, as you won't regret that you did. I have truly never had a year as challenging as this one, and looking back wonder how I did not break mentally but most importantly my son is recovering and real estate has enabled me to be there for him during this past year, and I really can't ask for anything else. For everyone keep scouring the earth for deals, they are there and I always like to hear from this group and help in any way I can.
Very inspirational story Cory!
All the best to your little fighter.

Sent from my SM-G960W using myREINspace mobile app
 
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