First Multifamily Deal: The Good, Bad, and Lessons Learned with Nico Salgado
What challenges did Nico face on his first multifamily syndication deal, and what key lessons did he learn that have shaped his investing approach today?
In this episode, host Taylor Loht interviews Nico Salgado about his experience acquiring his first multifamily syndication deal – a 194-unit C/C- property in Columbus, Ohio in 2020. They discuss the obstacles Nico faced with this challenging Class C property, from troublesome tenants to major deferred maintenance and difficulties with his large GP team. Nico shares key takeaways that have informed his investing strategy going forward.
Nico has a BS in Business Marketing and Management and a minor in Economics. He also holds a master’s degree in Spanish Language Education and spent the past 18 years as a Spanish teacher. Apart from teaching and investing in real estate, Nico is an entrepreneur, coach, mentor, and leader. He is an avid surfer, woodworker, traveler, and extremely proud father. As founder and visionary of Small Axe Communities, Nico is responsible for developing and executing the company’s long-term objectives, growth strategies, and initiatives as well as overseeing day-to-day operations.
[00:00 – 00:03] Getting Started in Multifamily Investing
- Nico began educating himself on multifamily in 2019 through a mentorship program
- He joined his first syndication deal in 2020 after declining initially due to feeling unprepared
[00:03 – 00:12] The Challenges of His First Deal
- 194 units in Columbus, Ohio purchased in Dec 2020 for $43k per door
- Significant deferred maintenance after 12 years of neglect from the previous owner
- Had issues with crime and troublesome tenants in one area of the two-property portfolio
- [00:12 – 00:16] Executing the Business Plan
- Brought in a construction crew from Miami to renovate units
- Renovated about 100 of the 194 units
- Took occupancy from the 60s into the 90s by the time of sale
[00:16 – 00:26] Selling the Asset
- Nico approached by several buyers early on due to an attractive offer
- Ended up selling to one of those groups 2 years after buying
- The buyer got “flaky” to rising interest rates but closed at the original price
- Having 8 GPs was too many “cooks in the kitchen”
- Stayed focused on Florida afterward due to the Columbus market
Quote:
-“It was a freaking stretch, man. It was really hard to get that done. I didn’t realize how hard it was going to be.” – Nico Salgado
Connect with Nico:
Website: https://smallaxecommunities.com/
Apply to Invest with Taylor at www.investwithtaylor.com
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About our Guest
Guest Name
Nico has a BS in Business Marketing and Management and a minor in Economics. He also holds a Masters degree in Spanish Language Education and spent the past 18 years as a Spanish teacher.
Apart from teaching and investing in real estate, Nico is an entrepreneur, coach, mentor, and leader. He is an avid surfer, woodworker, traveler, and extremely proud father.
Nico began investing in real estate in 2012 with a single-family development project and has since scaled to owning 194 units as a General Partner.
He hosts a monthly Meetup group titled the Multifamily Investors Network NY. Nico also hosts the Small Axe Podcast where he interviews industry leaders in multifamily, where he believes “it only takes a small axe to build a lasting empire”.
As founder and visionary of Small Axe Communities, Nico is responsible for developing and executing the company’s long-term objectives, growth strategies, and initiatives as well as overseeing day-to-day operations.
