š¤š» We're two full-time real estate investors, podcast hosts with 150K downloads, and co-authors of a BiggerPocketsĀ® bestselling book on self-managing rentals. We started as newbies and now own 40+ doors eachā¦ and weāre here to make investing feel less intimidating and a lot more fun. Hop on our list for real-talk advice, free networking events, and a peek inside The WIIRE CommunityĀ®, our high-impact membership for women who donāt want to do this alone.
How Much I Made on the 11-Unit Apartment š°
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Hey there, itās Amelia! š If youāve been following my journey with the 11-unit apartment building, now's probably the moment youāve been waiting forā¦how much I made on this deal. Iām breaking down the total profits, including cash flow, bonuses, and the final net profit from the sale. Spoiler alert: it was a big win! šø If you haven't read the previous emails in this series...you can catch up [here]! The Numbers
I was able to track and understand these numbers so well because Iāve really dialed in my bookkeeping process (thank gosh!). Having everything organized and up to date made it much easier to spot trends, measure success, and make decisions. If you donāt know exactly how much your portfolio is making, it might be time to think about hiring out your bookkeeping. And guess what? Weāve just hired a full-time WIIRE bookkeeper to help YOU with this! Get on the waitlist to utilize their services [here]! š Bonus StructureSince I was newer to partnerships at the time, I was ok with acquiring 40% of the equity. However, I completely underestimated how much time and work it was going to take to manage the property and be the boots on the ground partner. That's why I proposed the bonus upon closing. This was a way to be properly compensated for the three years of hard work. After a bit of negotiations, we landed on an 8% bonus. That meant after they were paid back their initial investment, I got an additional 8% of the net profit. That 8% earned me $11,381. š Profit from the SaleAfter the bonus, I made 40% of our net profit from the sale, which totaled $52,353. This brought my total earnings from the property to $95,880 over 3.5 years! Thatās a combination of cash flow, the bonus, and my share of the sale profit. Remember, I had NONE of my own money in this deal ā my return on investment was literally infinite! š My Partnersā ReturnAnd my partners did pretty well too. They invested $85,000 into the deal, and by the end of 3.5 years, they made $119,248 plus got their initial $85,000 back. Thatās a total return of 140.29% with an annualized return of 28.91%. BOOM! š„ What I LearnedThis deal was a huge win, and Iām proud of the results. The key here was leveraging the Midterm Rental (MTR) strategy to increase the propertyās cash flow and value. But there were definitely some lessons along the way. If I could do it again, Iād make sure to negotiate a property management fee for all the time and work I put into this deal. Even a 5-8% fee would have been less than we would have paid a "professional" property management company. This deal was actually one of the biggest pushes for me to quit my full-time job and dive into real estate full-time. If youāre ready to do the same, weāre hosting a FREE masterclass on February 17th at 7 PM CT about how to quit your W2 with real estate. Weād love for you to join us ā sign up [here]! āļø If you have any questions about this deal - I'd love to answer them. Just hit 'reply' and let me know! Cheers, |
Hi, we're Amelia & Grace!
š¤š» We're two full-time real estate investors, podcast hosts with 150K downloads, and co-authors of a BiggerPocketsĀ® bestselling book on self-managing rentals. We started as newbies and now own 40+ doors eachā¦ and weāre here to make investing feel less intimidating and a lot more fun. Hop on our list for real-talk advice, free networking events, and a peek inside The WIIRE CommunityĀ®, our high-impact membership for women who donāt want to do this alone.
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