MULTIFAMILY MIKE

@pestctrlguy @capabamma I wasn’t trying to imply you can’t / won’t hit $12MM, I had assumed that was what your $12MM response meant when you were fielding those calls sub $1MM

@multifam_mike @capabamma We’re gonna do $3.5 mm in revenue this year. I’ve seen pest companies in this range go for 3-4x revenue before. It’s the high end but it’s not unheard of.

When we were doing less than $1 million in revenue we were getting calls from searchers and PE companies every few weeks asking if we wanted to sell. We haven’t had that happen once in the last 8 months. Has the market cooled off or have we just successfully told enough people we are asking $12 million? And that is true. We are for sale for $12 million. When we get that offer we will accept it. Whether that’s tomorrow or 10 years from now.

@capabamma @pestctrlguy I think $12M means fuck off in the scenario.

@pestctrlguy Why is $12m the end goal number?

@DPOURBABA This guy has got the sauce

Rendering vs Reality. Delivered under $300/ft on rentable. 4 levels of resi over parking with floor to glass glazing and stylish interiors. I think reality beat the render!

Any real estate twitter + fly fishers out there?

@GenZMultifamily Totally agree. Cash flow is fine but it doesn’t return equity. One day, maybe 10+ years from now the cash flow will be gravy!

As a newer investor, I'm extremely picky with what I buy. Probably too picky. Cash flow is great, but I need big value add. If I can't force appreciation, I can't refinance, and my money stays tied up too long. This is what I buy: - Units are livable but outdated - 5-12 unit building, off street parking, good bones - Rents are at least $150-$200 below market - Going in cap rate at/above interest rate - Cash flows/hits return goals AFTER refi - Low crime area near major employers That's pretty much it. Maybe I'm too picky but I don't care. This is a long game. This is how I think I will build safely and get to the point where I can make more risky investments.

@colinushkowitz What are your lead categories?

Whenever I get a new lead: Text, Call twice, FaceTime, Call again, FaceTime again, Text again. Then I repeat it for days. If I don’t get them in 7 days, they go on a long term follow up drip. Most investors quit after 1 call and 1 text. The money is in the follow up.

@GenZMultifamily I wish there was more of this in my market. It’s all early 1900s stuff. Anything post 1960s flies off the shelf.

My first trip ever to the Midwest was to inspect my first apartment buildings. After walking them, I spent hours driving around looking at the area. I couldn't believe how many buildings were basically identical to mine. I'd see my exact building, just twice as long. Or three of them connected in a U shape around a parking lot. Even my 5 unit cut in half, as a 3 unit. Any variation you can think of, its out there. These two current listings show what I mean. Maybe this is more common than I think, but I'd never seen this before and thought it was cool.

@RandallHouseRE Sell that dream to the next guy 😂

@multifam_mike Some, but then you push those rents to compete with newer product. Better to stay in your lane

30% rent increases. Not proposed. Not underwritten. Actually achieved on renewals. This is why market selection matters more than most value-add business plans.

Showing my father (30 years in the plumbers union) the Carhartt store in Brooklyn

Always talk to a tenant like they’re gonna sue you one day.. you won’t regret it

@pestctrlguy Always super interested in these real estate adjacent businesses as I start to scale my portfolio. Thinking of how I can turn an expense into a profit center.

@multifam_mike Well, since I had been selling the service for two years, I picked up the equipment and performed the service that I had been explaining to people.

The morning of our 3rd acquisition my business partner and I both mentioned to each that we felt extremely uneasy. We had already acquired two other companies. Our first was much scarier, larger, and came with an SBA personal guarantee. Even on that one we felt good. We signed the deal anyway and it has been our worst deal by far. Luckily nothing that will truly derail our company but I wish we had just trusted our gut.

@pestctrlguy How did you learn the service side of the business?

@multifam_mike Door to door pest control sales was the only experience either of us had

@jamesonhaslam I hope you have a nice deck to grill those puppies on

Getting ready for round 2

@PatCarino @DealNav I vibe coded a pipeline tool myself and am pretty happy with it. It started as a way for me to learn claude code and worked out well in the since I made something I use. Is this the first customer you have lost to that reason?

What’s going on in this SaaS world is so insane right now. Had three people cancel their & @Dealnav subs today - biggest one day loss ever. Two guys said they just weren’t doing deals at the moment and would be back the other one said he’s making his own vibe coded version. But then, earlier this week had a team at one of the largest asset managers in the world ask if they could sign up for enterprise and add more people…they have access to anything and everything - but chose Dealnav What a weird time to be alive

@resetbasis Is there a single example of a neighborhood around an airport being a nice area? Particularly ones like Houston where the airport is far from the urban core. Maybe Dallas is all I can think of?

Got pitched a development site here. Rents: ~$1,100 per month Construction cost: ~160-200k per unit Recent sales comps: ~90k per unit Told the seller I wasn't interested, and he told me I lacked vision. Tough day.

@aussieflya @jayyeh Is this new?? Been riding for years never knew this

@jayyeh Trick is to cross into another borough. Capped at $5.40 for 45 min

damn. another nyc miscue. tried to save money and get some fresh air so i rented a citibike instead of taking the subway was not expecting to pay $25 for a 40 min ride this city is amazing and you absolutely pay for it

If you are getting estoppels when buying a deal, make sure you put in as much information as you can. Not just rent. Security deposit, confirm no rent balances, no defaults to the lease on both sides, pets, ANYTHING YOU CAN THINK OF AND CAN GET THE SELLER TO AGREE.

@juliusmarchi On any deal you need to be the guy following up constantly. You may feel like a pest but the squeaky wheel gets the grease. It’s fine on deals without a fuse but on a future deal that you may not have a financing contingency it could cost you big time.

I was supposed to close on my first duplex this week. Delays with the appraisal are now pushing that back. Slightly annoying but not a huge deal.