How to Make Millions Buying Land Before Developers Find It | Ep.1,321

Mark Nagy (0:04)

So, you know that apartment building or complex you drive by every day? Someone owns it, and it's probably someone on this podcast. Multifamily Rockstars. Join the growing numbers of real estate entrepreneurs who have made the jump to buying multifamily properties for Lifetime Cash Flow. Multifamily Rockstars. Using OPM for an OMG ROI.

Now, here are your hosts, Rod Khleif and Mark Nagy.

Rod Khleif (0:31)

Welcome back to Multifamily Rockstars. So, as you guys know, this is where we interview guests and kind of drill deep on some of their deals and give you actionable items that you can get started on your first deal if you're brand new to this.

And today, I'm interviewing Doy Nguyen, who has been a warrior for a long time and has been involved in multiple asset classes, including multifamily, self-storage. And yeah, it's great to see you, brother.

Duy Nguyen (0:59)

Yeah, it's good to see you. It's been a while.

Rod Khleif (1:01)

It has been a while. Yes, it has. When did you join?

Duy Nguyen (1:05)

I joined right after COVID. I want to say it's 2021

Rod Khleif (1:09)

Wow. Yeah, so it's been five years.

Duy Nguyen (1:11)

Yeah.

Rod Khleif (1:12)

Well, so why don't you give us a little background, buddy, because I know you were kicking ass with flipping and I don't know if you did wholesaling or not, but you were moving quite a few properties back in the day. Why don't you give us a little background?

Duy Nguyen (1:25)

Yeah. So I primarily did residential. We were building spec homes, fixing and flipping a lot of properties, some wholesale here and there and a few buying holds. But we were doing probably about 80 to 100 deals a year. That's a lot. That's not too bad.

Right before I joined your program, it was right after COVID, and it seemed like the whole market just froze up, and I didn't have any more active income for a few months, and started panicking. I was like, well, what do I do? How do I start creating this passive income? And I came across you and your podcast, and that's when I decided to join your group.

Rod Khleif (2:01)

And you've done, I think you said about 600 units in multifamily so far, like seven, did you say seven syndications?

Duy Nguyen (2:09)

Seven syndications totaled.

Rod Khleif (2:11)

Okay. And you said you just went full cycle on a deal in Ohio.

Why don't you talk about that deal? Talk about, do you recall what you may have paid for it back in the day? And if you just do the best you can and how you were able to, where is it located in Ohio?

Duy Nguyen (2:32)

Cleveland Heights, Ohio.

Rod Khleif (2:34)

Cleveland Heights. I love Cleveland Heights, man. I missed, I've been on some stuff there on the park. I remember there were huge units, older buildings, but huge units. I love that area. Okay. I can see why you did well.

So it was 90 units, I think you said?

Duy Nguyen (2:49)

It was 90 units. We purchased it, I want to say about three years ago.

Rod Khleif (2:52)

Okay.

Duy Nguyen (2:53)

And that was through Tal and Michael. I think they were warriors at one point in time as well.

Rod Khleif (2:58)

Okay.

Duy Nguyen (2:59)

But we had previously done two other deals with them prior to this one. And they've done a great job with the property management, the rehab, everything that turning it over and we just sold it July, July of this year.

Rod Khleif (3:13)

And do you remember any of the numbers, the returns, any of that?

Duy Nguyen (3:17)

It was just over 20% annualized.

Rod Khleif (3:20)

Okay.

Mark Nagy (3:20)

So we did pretty good on that one.

Rod Khleif (3:21)

Return. No, that's good. Yeah, that's real good.

Duy Nguyen (3:24)

Okay. Especially in this market.

Rod Khleif (3:26)

Yeah. And yeah, and it's a tough market right now. We were talking about it before we started recording. There's a lot of operators struggling. Hell, I'm struggling on a deal with good debt on it even, you know, because expense ratio. You know, when, you know, back then, I used to teach a 50% expense ratio. You may remember, well, you don't get that now. It's like 60, 65%.

And that really kills the NOI. And so, you know, that's why a lot of deals are going south. And there's incredible opportunity coming. And, you know, I think they're estimating a trillion dollars worth of debt coming due. And, you know, the catchphrase for lenders was extend and pretend. Well, I think that ship has sailed at this point and they're starting to foreclose. So we're just gonna see some, we're gonna see stuff go up for auction. You know, I've seen some heavily discounted deals being sold for even less than they cost a build. But, you know, and it's really being a contrarian investor where, you know, like Warren Buffett's famous quote, be fearful when others are greedy. A lot of greed, you know, 21, 22, 23 But then the flip side, of course, is be greedy when others are fearful and now there's fear. And so if there's a time, it's right freaking now. But so I know you've done some self storage as well.