Hey there! In this video, Chandler David Smith shares his worst investment experience in an 11-unit apartment complex. He dives into the details of how this property turned out to be the worst rental property he has ever purchased. Chandler also discusses his plans to transform this property into one of the best, including raising rents, making repairs, and improvements. Additionally, he offers a generous $50 discount on his new Real Estate Investing Course with a coupon code. If you’re interested, he invites you to join his Facebook group for further discussions and support. Chandler even mentions a job opportunity in door-to-door sales with him. For those eager to learn more about real estate investing, he suggests one-on-one mentorship. And if you want to discover more informative videos on real estate investing, passive income, and preparing for your own future home, he encourages you to explore the other content on his channel. Finally, Chandler’s real estate deals can be found in his Real Estate Portfolio. Intrigued by his journey? Then keep watching to learn all about his worst investment ever!

Introduction

Chandler David Smith’s worst investment experience in an 11-unit apartment complex

Imagine this: You’ve worked hard, saved up your money, and finally decided to take the plunge into real estate investing. You’ve heard countless success stories and are eager to see your money grow. However, sometimes things don’t go as planned, and that’s precisely what happened to Chandler David Smith.

Chandler, a seasoned real estate investor, had his fair share of successes. His real estate portfolio boasted impressive returns, with each property proving to be a profitable investment. But everything changed when he ventured into an 11-unit apartment complex, a seemingly promising opportunity that turned out to be his worst investment experience.

Background

Chandler’s real estate deals in his Real Estate Portfolio

Before we dive into the unfortunate story of Chandler’s apartment complex investment, let’s take a moment to appreciate the successes he achieved in his real estate career. Chandler had meticulously crafted a diverse portfolio of properties, ranging from single-family homes to commercial buildings. Through careful analysis and shrewd negotiation, he had managed to turn each property into a lucrative source of income.

His attention to detail and market acumen had allowed him to purchase properties significantly below market value, maximizing his profits when it came time to sell or rent them out. Chandler’s ability to find hidden gems in the real estate market had earned him a reputation as a savvy investor, with colleagues and friends alike seeking his advice and guidance.

Chandler’s purchase of the 11-unit apartment complex

Feeling confident in his abilities, Chandler decided to expand his real estate empire by purchasing an 11-unit apartment complex. The property seemed perfect at first glance – a prime location, spacious units, and a potential steady stream of income. Chandler was convinced that this investment would elevate his portfolio to new heights.

He negotiated a purchase price of $1.1 million, believing it to be a fair deal considering the property’s potential. The complex already had tenants in place, generating a gross rent of $3,750 per month. Chandler envisioned the cash flow from this investment propelling him towards financial freedom.

Chandler David Smith shares his worst investment experience in an 11-unit apartment complex

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Property Description

Purchase price of $1.1 million

The 11-unit apartment complex that Chandler acquired had a purchase price of $1.1 million. This price tag was based on several factors, including the property’s location, size, and its potential to generate rental income. At the time of purchase, Chandler believed that he was getting a good deal, hoping to see a swift return on his investment.

Gross rents of $3,750

The complex was already generating a monthly gross rent of $3,750 from the existing tenants. Chandler saw this as a positive sign, as it indicated that there was demand for the units, minimizing the risk of vacant units and potential loss of income. With this initial cash flow, Chandler anticipated being able to cover the property’s management and maintenance expenses.

Chandler’s Assessment

Considered worst investment ever

Unfortunately, Chandler’s excitement soon turned into frustration and disappointment. As he delved deeper into the details of his new investment, he realized that it was far from the lucrative opportunity he had anticipated. In fact, he considered it his worst investment ever.

Paying above market value

Chandler’s mistake became evident when he compared the purchase price of $1.1 million to similar properties in the area. It became apparent that he had overpaid for the 11-unit apartment complex, causing his potential returns to diminish substantially.

Below market value rents

To compound Chandler’s disappointment, he discovered that the complex’s units were rented out below market value. This meant that the existing tenants were paying rent amounts lower than what could be achieved in the current market. Chandler knew that if he wanted to turn this investment around, raising the rents to match market value would be essential.

Chandler David Smith shares his worst investment experience in an 11-unit apartment complex

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Plans for Improvement

Raising rents to market value

Chandler knew that raising the rents to match the market value was crucial to improving the cash flow of his investment. He devised a comprehensive plan to gradually increase the rental rates, ensuring a smooth transition for both existing and prospective tenants. However, he understood that implementing this strategy would present its challenges.

Necessary repairs and improvements

In addition to raising the rents, Chandler recognized the need for necessary repairs and improvements to attract tenants and increase the property’s value. He planned to invest in renovations such as updating the kitchens, bathrooms, and common areas, as well as improving the overall aesthetics and functionality of the complex.

Anticipated Challenges

Possible tenant turnover due to rent increases

Chandler was aware that raising the rents would likely result in some tenant turnover. Some existing tenants might not be willing to pay the increased amount, choosing to find alternative housing options instead. As a result, Chandler anticipated that he would need to allocate resources towards marketing and attracting new tenants to fill the vacant units.

Chandler David Smith shares his worst investment experience in an 11-unit apartment complex

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Expected Return on Investment

Profitability within a year

Despite the challenges, Chandler remained optimistic about the potential return on his investment. With the combination of increased rents and necessary repairs, he anticipated that the property would become profitable within a year. This timeline gave him hope that he could recover from his initial setback and generate a significant return on his investment.

Potential cash flow of over $37,000 per year

Chandler crunched the numbers and calculated the potential cash flow his investment could generate once the rents were raised and the renovations completed. He estimated that, based on market demand and his planned improvements, the 11-unit apartment complex could potentially yield over $37,000 in annual cash flow. This projection further fueled his determination to turn this investment around.

Promotion of Real Estate Investing Course

$50 discount with coupon code

Inspired by his experiences, Chandler decided to share his knowledge and lessons learned through a real estate investing course. He believed that by educating aspiring investors, he could help them avoid the mistakes he had made and set them on the path towards successful real estate ventures.

To encourage others to take advantage of this opportunity, Chandler offered a $50 discount with the coupon code “REINVEST50”. He hoped that this discounted rate would make the course accessible to a broader audience, enabling more individuals to benefit from his expertise.

Chandler David Smith shares his worst investment experience in an 11-unit apartment complex

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Invitation to Facebook Group

Join for further discussions and support

To foster a community of like-minded individuals, Chandler invited anyone interested in real estate investing to join his Facebook group. The group aimed to provide a platform for discussions, sharing insights, and offering support to those embarking on their real estate investing journeys. Chandler knew firsthand the value of a supportive community, and he wanted to provide a space where individuals could connect and learn from one another.

Conclusion

Chandler envisions turning the 11-unit apartment complex into a profitable investment

Despite the initial setbacks and challenges, Chandler remained optimistic about his investment in the 11-unit apartment complex. Armed with his knowledge and experience, he believed that raising the rents, making necessary repairs, and focusing on improvements would transform the property into a lucrative venture.

Chandler’s journey serves as a reminder of the unpredictable nature of real estate investing. Even seasoned investors like him can encounter obstacles along the way. However, by learning from these experiences and adapting strategies accordingly, investors can turn their worst investments into valuable lessons that drive future success.

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