They were under contract forever and they didn't close and that really pissed off the other party when we stepped in the good news is we actually bought all their due diligence material at a drastically discounted price because they have no use for it they'll throw it in the trash anyway so maybe we can do something with it.

Welcome to the big fat real estate checks podcast with Marco Kuzlowski where we help investors like you get the knowledge and skills you need to replace your J.O.B with passive cash flow for life.

Hey everyone welcome to a big fat real estate checks my name is Marco Kuzlowski I'm joined with Gabriela Lares and Francesco Galuccio and I'm excited to share with you a closed deal that we're going to give you a sort of play by play blow by blow reporting on this is your first time listening to this podcast kindly go to the very beginning the first ten episodes that explain acid base lending why we use acid base lending the power of acid base lending and understand why

we don't need money in order by assets that cash flow like crazy so we can a increase our wealth and our cash flow and work less make more and have more joy in our life doing the things that we actually want to do not need to do and that is all done through skill sets developing skills

and if you have the right skill sets the right behavior understand process you really change your life completely as we all have over time and by using these skill sets and having choices in life which is why we're here we choose to give you as much value as possible to give to give so you can take this information and run with it and really make big changes in your life with small little things that do make big differences and here we are.

So gentlemen appreciate you coming on once again always enjoy doing this this is I think we're going to discuss Dr David's deal this is a very large large large deal three hundred and thirty eight units say that again three hundred and thirty eight units that's a very large monstrous property

I used to be an assisted living facility in Illinois a skilled nursing facility in SNF which is one step above the assisted living facility it's skilled nursing so this was interesting story this was full over six hundred beds now just to give context a six hundred bed skilled nursing facility the average charges around thirty five hundred dollars human

that's their private rooms would be around six thousand this thing just those numbers with six hundred beds with the mix that it is is a anywhere between fifty to a hundred million dollar asset based on a lot of factors but worst case fifty best case a hundred hundred million dollars so just to give you some perspective on this okay

now it was closed down because of complete mismanagement which is how we acquire a lot of these assets sadly it was closed down and because when seniors are involved and they have to relocate and move it's terrible and very stressful on someone that's that needs that care through a management company that decided to take all the money and not pay any of the bills and just disappear in the middle of the night

leaving the ownership and residence holding a bag they were put into receivership and they were mandated to sell the asset quickly that's where we came in so that's when we came in and actually made an extremely extremely low offer under two hundred thousand which is preposterous other offers were coming in in the millions as is of dollars they looked at this and said are you crazy there's missing zeros on this you need a couple a lot of zeros extra please

and by looking at how this was structured they wanted the the most certain closing in the shortest amount of time so we didn't have any financing financing contingencies and we started obviously very very low and ended at three hundred and twenty five thousand dollars so that's what we actually closed on and on this property at the end of April 2022 so just to I don't know when you're listening to this but twenty twenty two very very hot for multi family assisted living facilities it's basically less than a thousand dollars

a unit and most people are speaking per door language which we don't ever care about is as a matter what we charge per door or what we sorry what we buy per door it's really what our acquisition cost matters are the return or how much we pay for something what the return is and what the upside is so there's a lot of other factors than just what we're buying per door anyway so really really phenomenal deal really really deeply discounted yeah there's some significant disrepair on the property we had one little caveat

to our offer is that we wanted to get an engineer to take a look at the foundation because there was some water damage over two years of property where rain is going inside the building is a four story building with a hundred thousand a hundred thousand square feet of footprint and there's four floors so this is a massive massive massive place lots and lots of opportunity but again if the thing is going to be falling apart honestly still at three hundred twenty five thousand we could sell the bricks this thing was built in nineteen hundred

really beautiful building and if you go on my social media at marco dot caslowski you can actually see an interview with doctor David or my Facebook you can also check that out as well but any who beautiful building old side new side the new side very limited damage in fact less than I'd say less than half a million bucks you can get this thing up and running over a hundred and sixty units there much more recent built in the eighties I believe so it's not that old of a construction lot of space really really nice building so

there are a lot of things that we can do because we bought it right and as you all know in real estate you make money on the buy on the cell and even in this time of everyone asking above retail which is in April of twenty twenty two I have no idea what the market cycles going to be when you're listening to this podcast doesn't really matter there are opportunities at all market cycles if the interest rates are high low markets hot very slow always opportunity as long as you know what you're doing and buying it right number one it cash flows the day of

buying it and or you structure this where there's no way you can lose which is what we're going to be discussing in this in this podcast as well so massive opportunity yes there's going to be some investment in the making this into the best use of space whether that's going to be an assisted living facility again or conversion into apartments or creating a halfway house of some kind or even a drug rehab center Frank is going to get into those options I think a little bit later

because there's a process to the negotiation of getting to the number that we got at we certainly didn't start with anything close to a million dollars as I said we started well under two hundred thousand gave actually was very instrumental in getting to the finish line we work as a team and so once we got around to the number then we had to go through the hoops of actually getting things done properly in order to get to closing but just to make a long story even longer we closed at three twenty five there was an asset base lender that stepped in at four hundred thousand allowing David to put it in the

full out about seventy thousand dollars seventy two thousand and change up your closing costs in this pocket so we got paid to buy it and not a single payment for an entire year while we figure out exactly with the best uses refit it set out and the lender's happy David's happy and of course the project is moving forward so

body neat things in this deal it's not just being lucky or right place right time there's other opportunities very similar to this gave is working on one right now and somewhere in the U.S. it's all I'll say it's two hundred units and it's actually very I think it's a larger project for as far as footprint goes and it's about

ish the same amount of cash out of pocket but very very interesting deals to be had in any market cycle if again you know what you're looking for and you know how to communicate effectively to get the best possible deals for both parties and in this case it was so I don't know where to go from here other than everyone's going to ask first

where did you find this deal right that's always the first question is you know do we find deals or are they are created really correct they're created actually I don't remember how we're David markets a lot

so if there's is this came from someone that he's marketed to in the past that just basically remembered you know remembered when he I guess left his store and came back and came back and said hey you know I got this with you know that

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