Unlocking the Potential of Distressed Multifamily with Brendan Chisholm

Are you looking to break away from the Wall Street Casino and invest in Main Street? In this episode, Taylor interviews Brendan Chisholm about his strategy for investing in distressed multi-family properties in Virginia, Georgia, and South Carolina. They discuss how to do due diligence on a property, including job and population growth, income growth, adjusting debt, and considering the cost of renovations. Brendan shares his story of transitioning into real estate after college and how he found more control over money than trying to “game” the stock market. He then dives into two specific deals that he was involved with and discusses in detail the process he used to give notice to tenants, renovate multiple units at once, and finance the deals. They also talk about using vacant units as storage instead of purchasing trailers within their cost analysis. Lastly, they share their thoughts on debt financing in today’s market and how having a relationship with a debt broker was beneficial for them. Tune in now to learn more about how to make successful investments in distressed multi-family properties!

[00:01 – 07:12] Investing in Distressed Multi-Family Properties

  • Distressed multi-family properties are defined as those with below 85% occupancy and need renovations
  • The three properties owned by Brendan and his business partners are between 45 and 70 units in size
  • They focus on value-add, distressed multi-family deals in the Southeast Mid-Atlantic area
  • Deals are acquired off-market or through a broken sales process

[07:13 – 16:39] Refining the Process of Distressed Multi-Family Investing: Quantifying Renovations and Assessing Market Demand

  • Adding features such as granite countertops, new cabinets, stainless steel appliances, painting, milling, asphalt, barbecues, dog parks, and playgrounds
  • Following macro and micro trends such as job growth, population growth, and income growth
  • Quantifying the cost of renovations through the understanding price of cabinets, granite, and floorings
  • Using rent comp analysis to determine if there is a large enough delta between current rent and what can be achieved after renovation
  • Brendan’s deal was an apartment complex surrounded by single-family residential homes
  • Using Capax and Construction Trackers to match invoices to underwriting

[16:40 – 24:24] Navigating the Financing Challenges of Distressed Real Estate Deals

  • Providing notice to tenants for units that need fixing up
  • Making decisions when buying a property with distressed units
  • Giving move-out specials to tenants
  • Grouping units together to save on construction costs
  • Using vacant units as storage instead of purchasing additional trailers
  • Doing exterior work first to make interior decisions

[24:25 – 28:55] Closing Segment

  • Connect with Brendan through the links below
  • The most important lesson learned: work the numbers


Connect with Brendan by sending him an email at [email protected]. Also, visit www.BKCHolding.com and www.BrendanChisholm.com


Invest passively in multiple commercial real estate assets such as apartments, self-storage, medical facilities, hotels, and more through https://www.passivewealthstrategy.com/crowdstreet/


Participate directly in real estate investment loans on a fractional basis. Go to www.passivewealthstrategy.com/groundfloor/ and get ready to invest on your terms.


Join our Passive Investor Club for access to passive commercial real estate investment opportunities.


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“You gotta work the numbers but you also gotta have, you also need to understand that a spreadsheet won’t tell you the true numbers based on where you purchased the property.” – Brendan Chisholm

About our Guest

Brendan Chisholm

Brendan Chisholm is the founding member of BKC Holding, LLC. A private equity real estate firm focused on acquiring distressed and value-add multifamily and mixed-use communities with asymmetric risk-return profiles.

Brendan has made multiple podcast appearances with high profile real estate professionals, coaches, authors and thought leaders to share his insights to their listeners that is both educational and inspirational.

This episode is brought to you by Roofstock, the world’s largest residential real estate investing marketplace. Open an account for free and start browsing turnkey investment properties today.

We are also supported by You Need a Budget. YNAB is a different kind of personal financial tracking company. They’ll help you track and plan your money with your priorities in mind. Open your trial account today and give it a shot!

About the Host

Taylor on stage

Hi, I’m Taylor. To date I’ve acquired, partnered on, invested in, or had a hand in over $150 Million in Commercial Real Estate Investments. I help busy professionals invest in multifamily and self storage real estate through my company NT Capital

I started the Passive Wealth Strategy Show to teach busy professionals how they can build passive cash flow and protect their wealth by investing in Main Street real estate, instead of Wall Street.

Don’t forget to follow on Instagram @passive_wealth_strategies

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Real Listener Reviews

Extremely useful podcast
Extremely useful podcast
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Short, impactful with excellent guests. If you have a full time W-2 job or business and are looking for ways to get involved in real estate on the side, this is for you.
Simple & effective information!
Simple & effective information!
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This podcast is worth listening to for investors at all levels. The information is simplified for the high level investors but detailed enough to educate seasoned investors about nuances of the business. I recommend!
Awesome Podcast!!!
Awesome Podcast!!!
@Clarisse Gomez
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The host of Passive Wealth Strategies for Busy Professionals podcast highlights all aspects of real estate investing and more in this can’t miss podcast! The host and expert guests offer insightful advice and information that is helpful to anyone that listens!
Great podcast!
Great podcast!
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Love all the information and insights from Taylor and his guest. Fun and entertaining. Highly recommend.

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