Applying 10Cs to real estate investing

Success in signing our first 44-unit multi-family apt deal in Florida!

Last night, we submitted the manuscript for our book Ten Commandments of Investing to our Editor.   This book was envisioned with research starting over a decade ago with heavy lifting done over “COVID Summer.”  My co-authors Tim and Oia wanted to make lemonade out of lemons and made best use of our time.  Writing such a comprehensively-research book has been an immense learning experience.

My company, Skytian Capital, applied it to our real estate investing, and as per above and even more in coming months, to success!

Commandment 1: Own Your Space – teaches us to put in the work, do extensive homework, to develop “Independence of Thought” on our chose market – the Central Florida multi-family apt market.   In past year, despite COVID, I personally visited Florida seven times to develop a network, to learn market and to view hundreds of properties, each time becoming more confident in the potential of the region, particularly Tampa Bay.    Eventually, I gained conviction or what the Investment Wizards teach as Commandment V: Seek Religion.   So earlier in year, Skytian decided that we will focus on this market with goal to own a 1,000 portfolio in coming 2-3 years.

Commandment 6: Be Patient, Be Bold teaches us to first be patient.  We saw hundreds of properties, underwrote dozens and made a dozen offers, but sticking to our strict underwriting criteria.   For nine months of deal-hunting, we could not land the right deal.  In June, we made ”best and final” for Hudson Bay, an attractive 44-unit apt building complex in Clearwater, only 9 mins from the #1 beach in America (TripAdvisor).   Another bidder offer higher price out of our criteria, so we lost the deal.

Yet, we did not.  Patience pays off.  Mid September, the broker rang us back as the other buyer could not find the funds.   Yesterday, we signed contract to become proud owners of Hudson Place.  

We will share in the next article the second piece of Commandment 6 how we are being super bold.

Hudson Place fits Commandment 9 Don’t Lose Money to a tee.    We are investing at an attractive above market high 5% cap rate, property is 100% occupied with strong collections (again, despite COVID) and has many areas to improve to increase future cashflows.

Congrats to the Skytian team for our hot deal in one of the hottest markets in USA and thank you Investment Wizards for the 10C guidance that got us there!

San