Multi-Family Value Add Example with Jesse Fragale | EP124

In this episode we talked about:
* Multifamily property in Toronto
* 7 Plex
* Raising Money for the Deals
* Units Turnaround

Transcriptions:

Dave (0s): Everyone. Dave Debo with another episode of the Property Profits Real Estate podcast today zooming in from Toronto, a fellow Canadian, a multifamily investor, a podcaster, a YouTube channel guy, a bigger pockets contributor, an overall good guy, Jesse Frago. How you doing today, Jesse?

 

Jesse (30s): Dave, I'm doing great. Thanks for having me on again.

 

Dave (33s): My pleasure. So, Jesse, I'm excited because today we're gonna be taking a look at one of the deals that you and your team are actually working on right now in the multi-family space in Toronto and what you're doing with this property, how you're adding value to this property, and the difference that a couple of years can make. So why don't you give us a little bit of a backstory about the deal that we're, we're gonna take a look at today?

 

Jesse (59s): Yeah, absolutely. Well, like I said, thanks for having me on. I always enjoy talking to you, Dave. It's, it's been too long since last time, last time we spoke. So this property, it, it's a multi-family property in Toronto, so we did a capital raise for the property. So, you

 

Dave (1m 16s): Know, so just give us an idea. Toronto is, Yep. The most expensive market, I believe in Canada, right? Were that, or Vancouver, but their neck and neck, What size of a property was this and, and what are we looking at price point?

 

Jesse (1m 29s): So if there, you know, depending on the Canadian market, but for sure if you have an American listeners on, So the property we acquired for it was 3.5 million. The, this is kind of the surprising part. This is a seven unit builder.

 

Dave (1m 43s): Seven units, yeah. So seven. Got

 

Jesse (1m 45s): It. And, and if we sold it today, it would probably fetch something closer to 5 million. So now I, to caveat that this is a property in Forest Hill, which is one of the most expensive neighborhoods in, probably in North America, but certainly in Canada. So it's a little bit of a different animal. I would say that in Toronto, Vancouver, somewhat similar in the 300,000 to 400,000 per unit, those are pretty average prices, but this one being 500 or six, seven, it's because it's more of a boutique building.

 

So,

 

Dave (2m 20s): Very cool. All right. So this is definitely a, a high end kind of a property high end area. I guess the question would be is how are you guys adding value on top of that?

 

Jesse (2m 32s): Yeah, so one of the things was, number one, the first, you know, you, you make your money when you buy the deal. I think, you know, my relatives, number of my relatives told me multiple times and you know, you know, I'm, I'm in brokerage, so my day job is in the commercial real estate space. One nice aspect of that is when I do prospect as an investor, it's, it's not too dissimilar from that in that this was an investor, sorry, this was a vendor I called off market wasn't, they weren't planning to sell. And I basically, you know, laid out the fact that we're acquiring properties like yours and would you consider an unsolicited off no brokers?

 

You know, I'm a broker, but I always tell th