EP.20 // How to Scale to 1,600 Units Under Management in Under 4 Years w/ Drew Coffin
On today’s show we have the Owner of Nest Property Management, meet Drew Coffin out of Coralville, Iowa.
On today’s episode we have the Owner of Nest Property Management, real estate investor Drew Coffin from the town of Coralville, Iowa. Drew has an incredibly interesting path and approach to real estate investing, and he and David cover it all! Drew talks about how he got started in real estate by working for a property management company, how he eventually took over the company as a co-owner, and he goes into the many ways he leverages the 1,600 doors managed by the company into sourcing new deals and acquiring new assets!
Stream This Episode on Your Favorite Podcast App!
Key Points from This Episode:
There are many ways to get into the real estate industry. One of which being through finding property management jobs, much like Drew did after graduating college while simultaneously working towards his real estate license.
Drew and his two partners eventually acquired the property management company that he once worked for when the previous owner was ready to retire.
“If paying a premium for a company, make sure the contracts stay after the original owners leave the business and make sure they don’t start a new business.”
Drew sources deals through phone calls and building relationships with owners, starting off with seeing if they need property management services, and then following up with the idea of selling the property.
In his two city markets, there is a total population of 450,000– where over 1,600 doors are managed by Nest Property Management.
Drew’s current game plan with his personal investments (between 10-40 units) is to buy and refinance 18 months later and find properties that have rent way below market rate.
Grow your portfolio by refinancing every 18 months and putting that money back into the business/ buying new investment properties every 5 years in order to have hundreds of doors not far down the line.
Drew’s company only uses local banks only and stays away from bridge loans while keeping the terms at 5-10 years with a fixed interest rate.
Keep the numbers conservative on the underwriting side to keep expenses sustainable, whether it be the percentage in rent increase or the interest rate with the private bank loans.
Don’t be shy to ask the seller to carry over a percentage of the sale personally or finance in part with an annual pay-out for up to 5 years by introducing this as a steady income and passive investment to them.
Drew’s best piece of advice is to “just go out and buy that first deal and you’ll figure it out”.
Reach Drew on Instagram through DM or by texting him on his cell at (319) 531-0838.
Relevant Links from Today’s Episode:
