In 2019, I started investing in “affordable housing”, mostly through C to B- multifamilies. in the last 6 months of 2019 I did the following:
Joined the Jake and Gino mentorship program
Purchased 21 unit C building in Manchester, NH for $1.25MM
Purchased 10 unit C building in Nashua, NH for $715K
Purchased 22 unit C+ building in Nashua, NH for $1.55MM
Became a 13% tenant in common partner in a 143 unit B class apartment complex in Lexington, KY (my portion was $500,000 of equity)
Invested 100K through my self directed IRA in a MHP fund
I’ve made a lot of mistakes and learned a ton and I am more bullish than ever on the the long term merits of being invested in the affordable housing sector. And because of what I have learned through the content Frank and Dave have so generously put out into the universe, I want to allocate more of my time and money cultivating relationships and investments in mobile home parks.
My goals:
-Accumulate mismanaged, misvalued, but high quality assets
-Reposition them and refinance money out
-Generate alpha through through thoughtful and considerate management of that asset
-Hold that asset for long term cash flows (10+ years) and infinite returns
-Secure these assets through long term government/agency debt, which matches the time horizon and goals of my investment.
When I compare compare my goals with those of the average syndication deal, fund, or partnership, the time horizon mismatch alone eliminates 95+% of what I have seen on the market. I truly want to accumulate assets that can generate cash flows and that I can pass down to the next generation.
As you can see above, I have put $1MM+ of capital to work in the 2nd half of 2019 in my first year looking at affordable housing and I intend on putting $1-1.5MM of my personal capital to work in 2020 providing I can find the right deals and/or the right partners. I have a W-2 job that I love and that affords me the discretionary income to invest in affordable housing. I am looking for partners that have the same goals and more importantly, the same ethos. If my vision for a partnership seems like it may be a good fit, please feel free to reach out so that we can discuss further.
Sincerely,
Craig
lunchpailcapital@gmail.com