#532: Value-Add Strategy in Longmont Unravels Due To $400K Repair Surprise

Denver Investment Real Estate

Ever wonder why some real estate deals fall through? In this eye-opening episode, we dissect a $4.6 million apartment complex deal in Longmont, Colorado that looked promising but ultimately unraveled due to a surprise repair during due diligence. We explore how a value-add strategy in Longmont unraveled due to a $400K repair surprise, offering crucial lessons for investors.

Host Chris Lopez sits down with Adam Fenton of Narrate Holdings to uncover:

• How a promising 26-unit townhome deal with a projected 27% IRR crumbled
• How the $400K repair surprise derailed the Longmont value-add strategy
• Why even experienced investors can be blindsided by hidden property issues

Adam shares his hard-earned wisdom on due diligence, including:

• The critical importance of thorough inspections, even at the risk of losing earnest money
• How to calculate your “deal funnel” – in Adam’s case, only 1 in 40 deals actually close
• Strategies for staying disciplined in a challenging market where good deals are scarce

Whether you’re a seasoned investor or just starting out, this episode offers valuable insights into the realities of multifamily investing. Don’t miss this chance to learn from a deal that didn’t happen – it might save your next investment. Discover why this value-add strategy in Longmont unraveled due to a $400K repair surprise and how you can avoid similar pitfalls in your investments.

https://youtu.be/JdXqFKT5xnE?si=mGMCR93J7OiGGaDe

Timestamps

(03:12) Construction and Rehab Budget

(05:47) Importance of Due Diligence and Property Inspection

(09:19) Termination of the Deal and Lessons Learned

Links to Podcast

Interested in learning more about Narrate or investing in one of their projects?

Schedule a call with our team here

Visit Narrate Holdings Website

Adam Fenton LinkedIn

Check out our other Narrate Podcasts

Episode 499: How this Developer’s Creative Debt Financing Strategy Helps Them Stand Out w/ Adam Fenton

Episode 501: Real Estate Development from Concept to Reality | Deal Analysis

Episode 527: How to Negotiate Land Deals for Your Next Multifamily Project

Who is Narrate?

Based in Denver, Narrate is a boutique private equity firm specializing in the investment and development of multifamily and mixed-use real estate projects as well as business ventures across the US. We are an experienced team of professionals focused on limiting downside risk while providing long-term, stable growth for investors. Our portfolio includes a diversified mix of ground-up development and existing value-add properties as well as high margin scalable businesses. Our approach blends personalized attention with deep industry expertise, enabling us to identify and nurture opportunities that others may overlook.

Disclaimer: This podcast provides educational and informational content only. It does not constitute personalized financial, legal, or tax advice.