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1664: Acquisition Unveiled: $77,000,000, Money Talks, Lessons Rock!
Well, we did it…
➡️ We just closed a HUGE multifamily apartment syndication deal in Northwest Arkansas – and we’re literally over the moon about it!
Of course, one main reason for our excitement is that we closed at $77,000,000, which is absolutely incredible. 🤩
But there are also other reasons why this deal was extra special.
For starters, this deal was very challenging at times – which makes us even more ecstatic that we persevered and made it through!
In case you didn’t know…apartment syndication isn’t allllways smooth sailing, especially in our current economic landscape.
But there are tons of lessons to be learned and wisdom to be earned on the way to making the big bucks.
And believe us. There are biiiiig bucks to be made in multifamily apartment syndication.💵😉
For now, though, let’s focus on the things we can’t possibly put a price on – like the lessons we’ve learned throughout the process of closing a $77,000,000 deal. Every deal teaches us something new that helps us grow and prepare for our future successes.
So let’s break down what we’ve learned this time around, so we can all benefit from new growth and new possibilities down the road.
Here’s what we’re sharing ⏬
- A little recap on our $77 million deal in Northwest Arkansas
- Lesson #1: Anxiety is still real, whether it’s $77M or $7M on the line
- Lesson #2: Execution certainty comes from having a solid, reliable team
- Lesson #3: Low fixed interest rates in current economic conditions are like unicorns
- Lesson #4: Never underestimate the power of relationships
- How to be a part of our next big deal
A little recap on our $77 million deal in Northwest Arkansas
To truly understand why this multifamily apartment syndication deal was different from others, we need to first take you on a little trip to Northwest Arkansas – the home of our $77 million apartment complex.
Pack super light…we won’t be gone long.
There are just some things we want to share about this little slice of the world that will help you get an idea for why we chose this unique location.
Welcome to Northwest Arkansas! 😎😎
Here are the key stats to know:
- Double-digit population growth
- Higher employment rates than all Texas MSA
- Six-digit median household income
- Three Fortune 500 Companies are within a 10 mile radius of each other
- Robust market with year-over-year absorption of NWA housing, 3x the pace of new supply
- Affluent market with higher rent affordability
- Median household income is over 6x our pro forma rent
Our apartment property was a brand new construction with absolutely no rehab needed, and no risk of materials exceeding our budget. So, basically…we were off to a great start right away.
We, of course, did our due diligence beforehand – and knew that Northwest Arkansas was an excellent place for a multifamily apartment property. That being said, we still faced plenty of challenges along the way, which is how we learned some very valuable lessons.
Lesson #1: Anxiety is still real, whether it’s $77M or $7M on the line
One area that is allllways a stressor for us, is raising enough capital for each investment deal. Even though we have enough experience and confidence in ourselves and our investors – the economic climate we’re in adds an extra layer of nervousness to the equation.
Now, we ended up raising $38 million for this deal, which is amazing! But we still had those cute little butterflies leading up to the cut-off point. 😅😅
The butterflies make investing (and life) more exciting…don’t you think?
What we realized is that we feel the same type of anxiety for any size deal – big, small, or somewhere in between. This time around, however, we learned how to help ourselves cope with the anxiety of raising capital. We did this by using a soft commitment interest form, to give us a basic idea of how many investors were interested, and what type of numbers we’re looking at.
It’s not 100% accurate, but it definitely helps with the stress!
We also offered a private webinar about the deal to our premium investors (the ones who already know and trust us). This turned out to be totally helpful, because we had tons of interest about the deal BEFORE even opening it up to the public.
This is something we will definitely take with us into future multifamily deals, so we can open them up with an extra boost of confidence and ease. 👌
Lesson #2: Execution certainty comes from having a solid, reliable team
Listen. There’s noooo such thing as perfection, no matter what type of work you do. But when it comes to investing, having an excellent team to put your full confidence in gets you pretty darn close.
You know what kept us going, even though we had some anxiety over raising $38M? It was knowing that we had the BEST teammates possible – with differing skill sets and strengths. We could all rely on each other to pick up slack when needed, offer new ideas, or carry out necessary tasks.
Trusting your team is really a non-negotiable in multifamily apartment syndication.
Plus, our own track record has proven that we are stronger together. We used to have success closing smaller investment deals, but with our current team, we’ve been tackling muuuch bigger deals over $70 million…like this one!
It certainly feels like the sky’s the limit over here in Kitti Kingdom and we can’t wait to see what happens next! ✨
Lesson #3: Low fixed interest rates in current economic conditions are like unicorns
Interest rates keep getting higher and higher, while the economy is trying to cool down a bit. So, for us to secure low, fixed interest rates for this deal was pure MAGIC. We call it our unicorn deal, because seriously…there’s no better option out there than what we ended up with.
It was an HUD Loan with 38 years left on a 40 year amortized schedule. 🤯🤯
Even as the Feds continued to raise interest rates, ours was locked and loaded – unable to change at all. That was a huuuuge relief for us, and a major win for the deal! Our lender would even allow us to adjust our interest rates, if rates were to lower in the future.
We had a few “pinch me” moments over this one, for sure.
Lesson #4: Never underestimate the power of relationships
This deal really drove home what we already knew: the right relationships can change eeeverything. You see, we won this deal (amongst some serious competition) because of a broker we worked with on a previous $71M deal. He enjoyed working with us so much that he picked up the phone to vouch for us at his Arkansas office!
What a small world, right??
The moral of this story is that you never know who could end up helping you down the road. We can’t even tell you how many times we’ve had stuff like this happen. It’s important to build a rock solid reputation that people know and respect, while being kind and professional in ALL circumstances, but especially in real estate investing.
We’re proud of the name we’ve made for the Kitti Sisters by consistently closing on large apartment complexes. It has allowed us to build a network of sellers, brokers, and other real estate professionals – which helps us expand our reach and gain access to even bigger and better apartment syndication deals. 🙌
Don’t forget that relationships and people matter – in this biz and in life.
How to be a part of our next big investment deal…
$77 million was a big one for us, but there will definitely be more where that came from! 🥳🥳
If you’re at all curious about creating passive income through apartment syndication, you’re in the rrrrright place.
Of course, you CAN venture into real estate investing in lots of different ways, but we can tell you with certainty that apartment buildings are where the biggest opportunities are. There’s a lot of money to be made in apartment syndication, and we want to make sure you have the chance to snag your own piece of the pie…so to speak.
Our investors are thrilled with their latest returns, and you’re not too far away from joining them.
Click here to learn how to invest with us…the Kitti Sisters!
Let’s set you on the path to growing sustainable, long-term wealth and financial freedom. 👏
GET ME ON THE KITTI FREEDOM CLUB
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