My interview with Terrance Doyle of The VareCo is part of our Book Contributor Interview Series. Terrance wrote chapters for both the 2019 and 2020 Guide to Denver Real Estate Investing Strategies books. Derek Marlin joins me as co-host as we talk about how Terrance transitioned from single family to multi family, flipping in Denver and apartment building syndication.
In the 2019 Guide to Denver Real Estate Investing Strategies book, Terrance set a goal for himself to focus more on multi family and close on two $3-5M buildings. He actually closed on 9 and blew past his $3-5M goal. He wanted to do fewer deals but larger transactions, and that's exactly what he did.
Terrance has found that multi family gives him more time to complete the steps involved in buying a property. When he started in 2008 buying single family properties at Trustee Sales, the process was stressful and rushed. He was often up against multiple bidders and decisions had to be made quickly, often without gathering all necessary information. With multi family, the closing timeline is typically 60-90 days with a 45 day due diligence period. If more time is needed to evaluate a property, 30 day extensions can be requested as well.
The more relaxed timeline allows Terrance to more fully investigate a property and evaluate the investment. He and his team now spend more time at a property which allows them to better understand maintenance issues, the tenant class, and their payment habits. He is also now preparing Phase I reports in order to bring on institutional investors. These reports require extensive due diligence. He's found that gathering more information makes him better at executing the business plan for the property.
As he's redirected his focus to multi family, he has been working with more traditional brokers instead of off market sellers. As they bring him more and more deals, the decision of when to pass on opportunities is one he struggles with. Derek and Terrance have both found this a difficult line to walk. Once you've put the time and effort into building your relationships and your pipeline, it's difficult to say no to an attractive deal.
This blog post is an abbreviated version of the complete interview. For all the details including insight from Derek, listen to the podcast or watch the video (links to both below).
Connect with Terrance Doyle
Submit a Chapter for the 2021 Guide to Denver Real Estate Investing Strategies Book
To submit a chapter for consideration for the 2021 Guide to Denver Real Estate Investing Strategies book, bookmark this page.
Grab a copy of the 2020 Guide to Denver Investing Strategies book for yourself.