How I got a 16 unit, $1.5M apartment building zero down by walking a few dogs and pet policies lol.

by | Indy Anna, Real Estate Investing, Uncategorized

ApartmentZeroDownPETPolicies

How I paid off a 16 unit, $1.2M apartment by walking dogs.

So this was a little more than JUST walking dogs LOL

– There is a post about 38 ways to buy apartment buildings just by using pet policies

– I asked Azam to make a video about so that should be coming as well, and there are actually more than 38 ways, more like 48 or 50

– Basically you improve the pet policies of an apartment building and then you use the increase in value as leverage

Anytime you increase income you increase the value

– Remember that commercial property are like businesses and companies in that they are measured and valued by how much money they make

– The cap rate tells the return you would get on the property if you paid cash, so 12% cap rate means if you paid $100,000 you would make $12,000 in the first year

– Just remember when you increase income = you increase value

In my case:

– Refer to the post on BigReia.com so you can see all the different ways of working with animals and pets but I started with a grooming service and then a VIP photo service

– On the east side of Indy there is a vet that I used as the Provider to do the work

– There was an apartment building right there that I started working with and using their tenants

I started with the special grooming/waling and VIP photo service

– Some tenants really jumped at it, and some of the VIP photo shoots were over $1,000

– Remember there are three pet policies, the Stanndard, Advannced and EPIC

– I wanted to add more clients so we started with other non-tenants as well just regular pet owners

Basically a side business is built and you are agreeing to let the apartment get some of the income

– Of the larger building, there is set of buildings that has 16 units, I focused on that

– It makes about 9-10k/mo (about $5,000 net roughly) and it is valued around $1.2M

– I was adding about 5k from the pet service (and keeping another 3-5k or so)

– With a 10% cap rate that is 60k a year or about $600,000 in extra value

– So the value goes from $1.2M to about $1.8M

– The owners now wanted to sell to me on contract

I don’t know if this was such a good deal for me

– This is my first deal like this

– I am slowly buying and paying off this 16 unit building with the income from pet policies and side business

– Why not take the cash?  Because I don’t want or need it so I’m throwing it at owning the apartment building

To recap:

– I used the exactly polices from the BigReia post so check that out

– I used grooming/walking but the real money came from the VIP photo shoots (again this is covered on the post)

– I made money with the tenants (and split it with the apartments) but then we expanded to other clients as well

– This became a good side business income and with the clients who were NOT tenants I didn’t have to split the money with the apartments

– I talked to the owners and we broke off a chunk of 16 units and I’m buying those on contract

– I didn’t have to put any money down, or go through a credit check, etc. because I focused on increasing the income FIRST before anything else

– I can probably pay the apartments off in a 2-3 years

That’s the thing though and what I don’t totally understand

– I now have to vets I’m working with and both of them want to make me a partner

– So if I’m making 200-300k/year extra why put that towards an apartment building and not the vet business which I can also easily grow?

– If I put all the money into the apartments and pay them off I will be making about $5,000 a month and have a property worth maybe $1.5 – $2M but that equity doesn’t mean much unless I refi or sell

– But if you I do the same thing and own the one of the vets I would make a LOT more than the $5,000 a month and even though I may not get the same equity of $1.5 – $2M I don’t know why that is much better lol

– I’m still learning I just wanted to let you guys know what was happening

Go through the class when it is done because no matter this is a great way to get paid residuals just like the ultra wealthy do.

The TOP things here are:

– You have to get good at increasing the INCOME (and thus the value) of assets because once you do you can write your own check

– You can always do a GXM and just volunteer to do it just so that you get the math right

– This is just from TWO of the pet policies, and using pet policies is just one way to increase the income while also giving animals a better life, everybody wins!

Thanks everybody!  = )

~ Indy Anna

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