Episode Description
Sometimes you get those deals that are so colorful you can’t help but take away some golden lessons from them. In this episode, me and my buddy Brandon Thornberry are going to take a deeper look into one of those deals from our own experience. Brandon is the Owner/Operator of UrbanGate Capital, which focuses on identifying emerging markets and investing in the path of progress. Prior to starting UrbanGate Capital, he spent 13 years acquiring and renovating single family homes. The skills developed during this time have been brought forward into the multifamily space in finding opportunities, envisioning the value-add potential, and executing on the value-add plan. Currently, UrbanGate is prioritizing the acquisition of properties in Middle, TN - Nashville, Chattanooga, and Clarksville.
Tons of nuggets in this episode, so jump in, and let’s dive into the adventure we had behind this deal in Chattanooga and why a judge decided to pick our offer over the sellers.
Real Estate as the Best Exit Strategy - [00:01 – 04:32]
I welcome Brandon Thornberry
Quick recap of his bio
Brandon gives a deeper look into his background
A background in the music industry as a tour manager
A building passion for real estate
His first ‘House Hack’
Every area Brandon has experience in
The Chattanooga Deal: The Judge Picked Our Offer, Not the Seller's - [04:33 – 34:31]
A starting look at the deal between me and Brandon
128 unit in Chattanooga
Off-market, forced deal by a judge
Getting in the middle of a family feud
How the deal was pencilled
70% expense ratio right off the bat
The heavy underwriting process
$300,000 of payroll
Lessons learned from this property’s underwriting process
Multifamily take a mental game to get right
Hitting hurdles on this deal
Having to testify in court
Given a Gag Order on the deal
Tricked into missing due diligence days
Pushed to hire a professional litigation attorney
Navigating complicated property tax laws
Coaching the seller with market and data analysis
A month and a half of settling time
A look at the quality of the asset
A solidly made building with little to no insurance claims
Steel reinforced concrete
Why our offer was picked
How relationships came into play
Shifting the leverage to our side
Ousting the opposing attorney
Playing chicken with the oppositionClosing the deal
Down to the wire
Where we are now with the deal
Final Questions (The Quattro Trio) - [34:32 - 39:15]
What is your superpower?
Finding deals, envisioning the CapEx, and figuring out the budget
What is your biggest failure?
Not partnering and not hiring earlier on
How are you making the world a better place?
Corner to Corner Ministry
How to reach Brandon
Links below
Final words
Tweetable Quotes:
“What I found out as I transitioned into Multifamily is you really have to set aside time to underwrite deals… I think that’s where the mental game can be tough.” - Brandon Thornberry
“Deals are not found, they’re made.” - Chad Sutton
“People see that you’re able to close deals and that’s what brokers want to see… Brokers want to make deals to people they know can get it done.” - Brandon Thornberry
“Finding the right ‘who's in your life is exponential because you get those people’s capabilities.” - Brandon Thornberry
Resourced Mentioned:
Want to connect with Brandon? You can find him on Facebook. Check out UrbanGate Capital and start investing in the path to progress.
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Real Estate Runway Podcast is all about alternative business and investment strategies to help you amplify life, and maximize wealth!
Click here to find out more about the host, Chad Sutton.