EP199 Surprises After Closing on a 144-Unit Apartment Complex with Justin Richards & Aaron Lenartz
When Justin Richards and Aaron Lenartz were last on this show, they shared everything they’d just gone through in finding, negotiating, syndicating, and closing on a 144-unit apartment complex in Memphis, Tennessee. You can check out episode #140 to hear that story. In this episode, you’re going to find out what happened after the close and how it has affected their outlook and decision making process ever since.
Justin and Aaron share some of the challenges they faced and how they came up with the solutions to solve them. We discuss the engineering report and the cash shortfall that can occur when the lender reserves funds from the closing to make immediate repairs, but doesn’t release that money until after the repairs have been completed. We’ll learn about some difficult partnerships that Justin and Aaron have had to walk away from, as well as the key members they’ve since added to their team.
Justin and Aaron share some painful experiences of the acquisitions that have fallen through since then, and the uncomfortable news they had to share with their investors. You’ll learn why some of those deals didn’t happen, and the physical inspection at one property that revealed over $7 million in deferred maintenance the owner failed to disclose.
Justin and Aaron also discuss the 600 units they currently have under contract, and how they’re laying the groundwork to have plenty of capital throughout the next financial downturn.
There’s a lot for any investor to learn in this episode, and Justin and Aaron don’t hold back from sharing the challenges they’ve overcome this past year. You can find out more about them by visiting them at greysoncapitalgroup.com